Prospectus re Admission to the Official List - Heritage Oil

Capital expenditure15 months ending 12 months ending 12 months ending31 December 2008 31 December 2009 31 December 2010$ million $ million $ millionOman — West Bukha ...................... 15.8 — 12.5Uganda ................................ 18.5 3.8 3.8Russia ................................. 43.2 85.4 84.7Pakistan ................................ 1.0 1.0 1.0KRI................................... 27.0 8.0 0.5Malta .................................. 5.9 0.4 22.8Mali .................................. 4.8 8.8 8.3116.2 107.4 133.6There will be no abandonment of decommissioning costs throughout the forecast period.Capital expenditure and operating costs will arise in accordance with the commercial terms of the PSCsand licences.No additional capital expenditure is assumed to arise in relation to projects and activities that the Group isconsidering undertaking, but which are not reflected in the report prepared by RPS in Part III of thisdocument, save for other minimum exploration work programmes and commitments.Cash flows in respect of receivables arise one month following the month in which they are generated.Cash flows in respect of payables arise one month following the month in which they are generated.TaxationIncome tax has been estimated in accordance with the applicable tax regimes and taking into considerationavailable losses and allowances in which the Group operates.Financing assumptions15 months ending 12 months ending 12 months ending31 December 2008 31 December 2009 31 December 2010$ million $ million $ millionRepayment of Begal loan ................... 0.6 0.5 0.5Repayment of Coatbridge loan ............... 0.2 0.2 0.20.8 0.7 0.7At a future date twelve months from the date of this document, the Group will be seeking additional equityand/or debt financing round(s) or could consider selling non-core assets during the period of theIllustrative Projections to finance the remainder of the operational expenditures required to bring theinitiated oil and gas development exploration activities into full production and fund explorationprogrammes. For the purposes of the Illustrative Projections only, it is assumed to be equity finance. Theextent to which debt might be raised at a future time is not included within the Illustrative Projections andwould create additional interest and capital repayments for the Group.242