• Thursday, May 30, 2024
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Heritage Oil nets $234.5mn from OML 30, eyes growth in Nigeria


United Kingdom-based Heritage Oil Plc, an independent upstream exploration and production company, has said a sum of $234.5 million has been generated from the recently acquired Oil Mining Lease (OML) 30.

The company stated that it was looking forward to further increases in production from the field, even as it is set to make inroads into new regions of the country.

The company, in its results for the twelve months ended 31 December 2012, revealed that key items of equipment have been identified and ordered to bring about the expected increase in production from the field.

Last year, the company acquired an interest in OML 30 through Shoreline Natural Resources Limited whose ownership interests are held by Heritage Oil SNR (Nigeria B.V.), a wholly owned subsidiary of Heritage and a local Nigerian partner, Shoreline Power Company.

The company said the acquisition provided a material change in proved and probable reserves for Heritage, which RPS Energy Consultants Ltd independently estimate at 412 million barrels, for interests in Nigeria and Russia, as at 31 March 2012.

Shoreline made a cash payment of $52.5 million, in April 2013, to reduce the bridge loan to $497.5 million, the company said.

Heritage had cash at 31 December 2012 of about $90 million, excluding amounts relating to the tax dispute of close to $405 million and amounts used as part security in respect of OML 30 of $101 million.

Output from OML 30 has averaged 20,350 barrels of oil per day (bpd) since the acquisition.

There was Production from the interest in OML 30 Nigeria, net to Heritage of 12,350 (bpd) for November and December 2012.

Tony Buckingham, Chief Executive Officer, said in a statement on Tuesday: “2012 has been a momentous year in the evolution of Heritage.

We have enhanced our portfolio through corporate activity, securing a step change in production, reserves and cash flow and selling our gas interests in Kurdistan at an attractive valuation.

Our transformation includes entry into new regions of Nigeria and Papua New Guinea and extending our acreage in Tanzania.

The company now has significant producing assets and an enlarged exploration portfolio, providing more balance with both geographic and operational diversification.”