Prospectus re Admission to the Official List - Heritage Oil

Production from the Zapadno Chumpasskoye field in Western Siberia should increase from the average of342 bopd in February 2008 as a result of existing wells being brought on production as well as furtherdevelopment drilling.Production from Block 8, Oman is not expected to change materially from the average net production of109 bopd of LPG and condensate in January 2008, until the West Bukha field commences production,which is expected to take place in the third quarter of 2008.7. RISK FACTORSPrior to investing in the Ordinary Shares or the Exchangeable Shares, prospective investors shouldconsider the risks associated therewith, including:Risks Relating to the Group’s Operations recovery and reserve and resource estimates may prove incorrect; exploration activities are capital intensive and involve a high degree of risk; future appraisal of potential oil and gas properties may involve unprofitable efforts; oil and gas price fluctuations; without the addition of reserves through exploration, acquisition or development activities, theGroup’s reserves and production will decline over time as reserves are exploited; production operations involve many inherent risks; interruptions in availability of exploration, production or supply infrastructure; third party contractors and providers of capital equipment can be scarce; reliance on other operators and stakeholders limits the Group’s control over certain activities; permits, approvals, authorisations, consents and licences may be difficult to obtain, sustain or renew; regulatory requirements can be onerous and expensive; the Group cannot completely protect itself against title disputes; the Group is highly dependent on its executive management; preparation of consolidated IFRS information and dependency on key accounting personnel; environmental liabilities can be significant; additional funding may be required after 12 months from the date of this document; negative operating cash flow could increase the need for additional funding after 12 months from thedate of this document; issuance of debt to finance acquisitions would increase the Group’s debt levels and there can be noassurance that the Group will be able to meet its obligations in respect of additional debt facilitiesafter 12 months from the date of this document; significant competition attracting and retaining skilled personnel; the international oil and gas industry is highly competitive in all its phases; due diligence of assets and acquisition targets is inherently incomplete; future acquisitions may involve many common acquisition risks; managing the Group’s expected growth and development could be challenging; there is a risk of counterparty default or delay; insurance may not be sufficient to cover the full extent of liabilities; currency fluctuations and foreign exchange particularly in relation to United States dollars; labour unrest could affect the Group’s ability to explore for, produce and market its oil andgas production; and7