Prospectus re Admission to the Official List - Heritage Oil

RPS EnergyHeritage Oil – Competent Persons ReportEstimation of the Product StreamsIn addition to the above estimation of the ‘‘black’’ oil production, reserves estimates of C 3 , C 4 , dry gas, andcondensate are required for completeness.To achieve this, we have used an Equation of State (‘‘EoS’’) PVT simulator to perform an equilibrium flashon the expected wellstream composition above and below the bubble point. The following yields per stb ofblack oil were obtained from this exercise (Table 16):Above Bubble PointAverage Below Bubble PointThamamaDry gas ...................................... 1.461 ft 3 17.047 ft 3C3.......................................... 0.0574 stb 0.5529 stbC4.......................................... 0.0549 stb 0.4789 stbLPG total ..................................... 0.1122 stb 1.0319 stbCondensate ................................... 0.0867 stb 0.6530 stbMishrifDry gas ...................................... 1.922 ft 3 13.147 ft 3C3.......................................... 0.0650 stb 0.3959 stbC4.......................................... 0.0559 stb 0.3282 stbLPG total ..................................... 0.1209 stb 0.7241 stbCondensate ................................... 0.0841 stb 0.4319 stbTable 16:Estimated Product Yields from West Bukha WellstreamThese were used in combination with black oil production, reserves-weighted between the Mishrif andThamama Formations. The dry gas stream was reduced to account for losses, pilot, fuel and downtime.These complicated calculations are needless to say just qualitative, and it will take several months ofsustained, stable production to ratify the yields, which will also vary as a function of which formationsare open.Developmental RiskAt this pre-production stage, there are developmental risks, in addition to the obvious reservoir risks. Therisks, which may impact the timing and amount of future cash flow—all standard at this stage of adevelopment and by no means specific to West Bukha—include but may not be limited to the following: The timing and efficient functioning of the facilities; The timing and results of the well operations; The timing, location and results of the second development well; and Specific to West Bukha: any retrospective adjustment to produced volumes or cashflow as a result of alater agreement between the Iranians and Omanis.91