Prospectus re Admission to the Official List - Heritage Oil

The Group acquired a 10 per cent. interest in Block 8 offshore of Oman in 1996. The other joint venturepartners are RAK Petroleum (the operator) with a 40 per cent. interest and LG International with a50 per cent. interest. This licence has an area of 423 square km and contains the Bukha field which islocated 40 km offshore in the Straits of Hormuz and is a gas-condensate field, in around 90 metres ofwater. The licence also contains the West Bukha discovery. The Group has proved and probable reservesof 1.6 million barrels of oil equivalent of liquids and gas in Oman, independently certified by RPS and netproduction for January 2008 was approximately 109 bopd.The Bukha field commenced production of gas and condensate from two wells in 1994. Wet gas isproduced through an unmanned platform and channelled via a 34 km pipeline to an onshore plant in RasAl Khaimah. Revenue is generated from selling the condensate and LPG.Overall, gross production of liquids from the Bukha field declined by 11 per cent. to 1,618 bopd in 2007,which is in line with expectations for this mature asset. Production is piped into a processing plant onshorein Ras Al Khaimah, operated by the state gas company, Rakgas. There the gas condensate is stored forsubsequent lifting when logistically economic quantities are accumulated and sold to a third party under anannual contract. LPG is sold to Rakgas and the residual gas is sold by Rakgas to local cement factories.The Company is not paid directly for the gas production from the Bukha field, but will receive revenuefrom gas production from the West Bukha field.Block 8 also contains the Hengam/West Bukha discovery, which represents a significant potential futurefield development. The field is partially located in Block 8 in Oman, approximately 20 km from the Bukhafield, but a significant part of the structure is in neighbouring Iranian waters, where it is known as Hengam.In May 2006, the West Bukha-2 appraisal/development well was spud, targeting cretaceous-age carbonates(the same formations as at Bukha) in a large, gas-condensate accumulation straddling the Oman-Iranborder. This well was a success and tests produced a combined flow-rate from the zones tested (Ilam/Mishrif/Mauddud and Thamama) of approximately 12,750 bopd and 26 MMscf/d. The oil was light(approximately 42 o API).Development of the West Bukha field commenced in 2007 and is ongoing. It is planned to re-enter theWest Bukha 2 well and complete it as a producer. Facilities design work has been concluded and it isplanned to install a platform and pipeline to deliver the petroleum fluids to markets in Ras Al Khaimah viathe Bukha system. First commercial production is anticipated in the third quarter of 2008.Capital expenditure in Block 8 between 2005 and 30 September 2007 (IFRS) may be summarisedas follows:Year ended Nine-month periods ended31 December 30 September2005 2006 2006 2007$ $ $ $(Unaudited)Drilling .................................... — 3,209,500 2,621,614 749,862Seismic ..................................... — 419,942 332,192 88,897Other ...................................... 398,316 698,157 233,115 1,982,649398,316 4,327,599 3,186,921 2,821,408Independent Reserves at Bukha Field in Block 8RPS estimated the net working interest reserves and net entitlement interest and value to the Company ofWest Bukha and Bukha as at 30 September 2007, using money of the day prices, discounted at 10 per cent.,to be as follows:NetWorking Net NetInterest Entitlement PresentReserves Interest ValueMMboe MMboe $MillionsProved ............................................... 2.4 1.1 12.8Probable Additional ..................................... 2.9 0.5 20.2Total Proved + Probable .................................. 5.3 1.6 33.0Total Proved + Probable + Possible ......................... 10.1 2.5 61.9UgandaSignificant oil exploration began in Uganda in 1997 following the award of an oil and gas licence to theGroup. Assets in the Albert Basin are controlled by the Group and Tullow Oil plc. The Albert Basin islocated on the border with the DRC.41