Heritage Oil – A bit of good news at last?
Heritage Oil [HOIL] has confirmed it has a cash position of US$222 million as of 30 September 09, “which covers ongoing work programmes and current plans for 2010 comfortably” according to a statement by the company today. The FTSE 250 oil and gas company also hinted that they hope to reach a formal agreement with Turkey’s Genel Energy on the proposed $6 billion merger before the end of the year. Heritage originally announced the planned merger back in June and had hoped to have the deal finalised by October.
Heritage Oil’s CEO, Tony Buckingham, said:
“Operationally, Heritage is about to embark on its busiest period ever with high-impact multi-well drilling programmes in Kurdistan and Uganda, providing the potential for a significant increase in oil volumes. The previous successful drilling campaign in Block 1, Uganda, has de-risked the prospects for the upcoming programme in Uganda significantly.”
Heritage’s output in Russia soared by 83% in the third quarter to 422 barrels of oil per day.
A note of caution however came from brokers Evolution Securities who commented that “There is nothing particularly new. All it highlights is a window of activity and although it may reignite interest in the story, any significant movement in share price will depend upon whether Heritage can sign the deal with Genel before Christmas”.
After watching the share price take a hammering recently on lack of news as well as delays in the Genal deal, due to leadership changes in Kurdistan, it’s good to hear any news from Heritage.
Virgin
I have been sitting on HOIL for a long time. Patience. Sound stock
I have been adding to my holding on this one during this downtime. But it has been depressing to watch over the last month.
Dave