Prospectus re Admission to the Official List - Heritage Oil

The Group has also entered into a separate strategic agreement with the KRG to establish a 50/50 jointventure company which shall build, own and operate an oil refinery in the vicinity of the block. Therefinery, which should have a capacity of 20,000 bopd, is scheduled to be operational to designspecification within approximately two years of the signing of the agreement.MaliThe Group is the operator and has the right to earn a 75 per cent. working interest in each of Blocks 7 and11 by financing 100 per cent. of the minimum work programme over the next two years. The blocks cover agross area of over 72,000 square km and are located in the Gao Basin. The Group’s partner is Mali OilDevelopments SARL a wholly-owned subsidiary of Centric Energy Corporation.In return for acquiring the working interest, the Group has agreed to fund the costs of the required workprogrammes estimated to be a minimum of between $14 and $15 million in order to earn its 75 per cent.working interest. Block 7 exploration period can be renewed twice for a duration of 3 years for each periodsubject to additional spend commitments of $8 million for the first and $14 million for the second renewalperiod. Block 11 exploration period can be renewed twice for a duration of 3 years for each period subjectto additional spend commitments of $8 million for the first and $15 million for the second renewal period.Map of Blocks 7 and 11 and Surrounding Area14º 12º 10º24º8º 6º 4º 2º0º 20º 4º 6º24ºLEGEND22ºHeritage PSAExploration WellWell & Gas ShowsMALIALGERIA22ºInternational BorderAtouila-120º0 100 200km20º0 50 100mYarba-1Block 7KidalIn Tamat-118º18º16ºMAURITANIATimbuktuTin Bergoui-1GaoBlock 11Ansongo-1Tahabanat-116ºSENEGAL14º12ºKayesGUINEA10º14º 12º 10ºMoptiSègouKoulikoroBamakoSikassoIVORY COAST8º 6º 4º 2ºBURKINA FASOOuagadougouGHANATOGNIGER14ºNiameyBENIN0º 2º 4º12ºNIGERIA10º14MAR200801100947The two licences are located in the Gao Basin, a Mesozoic basin that the Directors consider has geologicalsimilarities to other Mesozoic interior-rift basins within North Africa, such as the Muglad Basin of Sudanand the Doba Basin of Chad, and Tertiary basins such as the Albert Basin of Uganda. Previous seismic dataacquired in Blocks 7 and 11 show the presence of tilted fault-block traps, and indicate up to approximately4 km of sediments in the geological section.MaltaOn 14 December 2007, the Group entered into a PSC with the Maltese Government for a 100 per cent.interest in Blocks 2 and 7 in the south-eastern offshore region of Malta. The Group is the operator. Thelicences (Blocks 2 and 7) extend to almost 18,000 square km and are situated approximately 80 km (in thecase of Block 2) and 140 km (in the case of Block 7) from the south-eastern Maltese coastal waters in47