Prospectus re Admission to the Official List - Heritage Oil

Date1998 ........ The Kiame oilfield, offshore Angola, operated by Ranger, commenced production inJune 1998. Production from the field terminated in April 2002. The Group held a5 per cent. net profit interest.1999 ........ HOC listed the HOC Common Shares on the TSX.1999 ........ Maurel et Prom farms into the Kouilou and Kouakouala A, B, C and D licences in theCongo and is appointed operator. The Group’s working interest reduces to 25 per cent.of Kouakouala A permit and 30 per cent. of the Kouilou exploration licence andKouakouala B, C and D licences.2001 ........ The Group sold a 50 per cent. working interest in the Uganda Block 3 licence toEnergy Africa.2001 ........ Discovery of the M’Boundi field in the Kouilou exploration permit.2002 ........ The disposal of the Group’s 30 per cent. working interest in the Kouilou permit in theCongo in the first half of 2002 to Maurel & Prom for a consideration of $30 million incash, $5 million in interest bearing convertible debentures in the purchaser and theretention of a 5 per cent. gross override royalty that becomes effective after 67 millionbbls have been produced.2004 ........ The disposal of the M’Boundi royalty to Maurel et Prom for proceeds of $30.4 million.Acquisition of a 7 per cent. working interest in the Noumbi exploration permit in theCongo for $7 million.2004 ........ The Group is awarded a 50 per cent. working interest in Blocks 1 & 3A in Uganda andis appointed operator.2005 ........ The Group acquired a 95 per cent. interest in the Zapadno Chumpasskoye field, inRussia and appointed as operator.2006/07 ...... On 27 March 2006, HOC issued 600 unsecured convertible bonds each with a par valueof $100,000 for aggregate proceeds of $60 million. The bonds had a coupon rate of10 per cent. per annum and a term of five years and one day. At the option of theholders, the bonds were convertible, in whole or in part, into HOC Common Shares ata price of U.S.$18.00 per share at any time during the term of the bonds. HOC had anoption to redeem, in whole or part, the bonds for cash at any time on or before28 March 2007, at 150 per cent. of par value. On 17 January 2007, HOC gave noticethat it had exercised its option to redeem the 550 outstanding unsecured convertiblebonds at 150 per cent. of par value for total proceeds of $82.5 million plus accruedinterest which was paid on 28 March 2007. Fifty of the 600 unsecured convertiblebonds, with a total par value of $5 million, were converted into 277,778 HOC CommonShares at an exercise price of $18.00 per share subsequent to 31 December 2006.2006 ........ In July 2006, Blocks 1 and 2, adjacent to the Ugandan blocks, in the DRC wereawarded under a single PSC with the government of the DRC.2006 ........ The Group entered into an agreement with TISE Holding Company to establish ajointly owned company, TISE-Heritage Nefetegas, which was incorporated in 2007 toappraise and jointly acquire oil and gas opportunities in Russia and internationally.Shareholders of TISE Holding Company include Concord, Zarubejneft,Zarubejneftegas (a wholly-owned Gazprom subsidiary), Technopromexport andZarubejstroymontaj.2006 ........ In November 2006, Heritage Congo was sold to Afren for a consideration of$21.0 million, plus 1,500,000 Afren warrants, with a term of five years and an exerciseprice of £0.60 per share. Heritage Congo held a 14 per cent. interest in the NoumbiPermit, in the Congo.2006 ........ At the end of 2006, the West Bukha-2 appraisal/development well test produced acombined flow-rate from the zones tested (Ilam/Mishrif/Mauddud and Thamama) ofapproximately 12,750 bopd and 26 MMscf/d.Event54