Heritage Updates on Libyan Operations

Shares in Heritage Oil closed down 1.9 percent on Thursday, following the company's interim management statement.

The companay gave the following update on its operations in Libya:

Heritage established a base in Benghazi in the first half of 2011, having been in discussions with senior members of the National Transitional Council, the legitimate and recognised government of Libya at the time, as well as with its Executive Committee, the National Oil Company ("NOC") and certain subsidiaries.

The dialogue with these parties continues, with Heritage now also active in Tripoli and exploring ways to assist the newly appointed Interim Government (under the General National Congress elected in July 2012), the NOC and the state oil companies rehabilitate and re-shape Libya's hydrocarbons sector, placing it on a sustainable path that will meet the needs of the country going forward.

Work is ongoing through Sahara Oil Services in Benghazi, the gateway to the majority of Libya's current producing fields, with the aim of playing a key role in the substantial amounts of rehabilitation work needed to resume, maintain and increase Libya's hydrocarbon production in line with NOC and Oil Ministry targets.

Tony Buckingham (pictured), Chief Executive Officer, commented:

"It has been an exciting time for Heritage Oil as we have completed a significant acquisition providing the Company with cash generating assets and a substantial increase in our reserves and production outlook.

"Our interest in Nigeria provides a new direction for the Company and a larger foundation upon which we can build. The current management team has been very successful in value creation for Heritage, generating cash of over $2 billion from asset sales in the last decade.

"We look forward to completing the proposed divestment of the Miran asset and focusing on opportunities to expand our portfolio."

(Sources: Heritage, Yahoo)

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