Heritage Oil – Now everybody is talking about it
It is confirmed, Heritage Oil [HOIL], the UK-listed exploration and production company is to sell its stake in two fields in Uganda’s Lake Albert Rift Basin, to energy giant ENI of Italy.
ENI are to acquire the 50% working interest Heritage holds in two blocks in the Albert Basin, Blocks 1 and 3A, which it shares with Tullow Oil. Under the deal, Heritage will pay a special dividend of between 75 pence and 100 pence per share to investors, according to the Heritage website.
The deal is worth $1.35 billion.
The company also confirm that as a result of entering into the letter of intent (LOI) with Eni, discussions with Genel Energy International Limited (“Genel”) in relation to the proposed acquisition of Genel have been terminated. The deal is expected to complete in the first quarter of 2010. How this news will affect the share price, remains to be seen.
It is thought Heritage would use the proceeds from the Italian deal to further develop its assets in the Kurdish region of Iraq where the company has a 75% stake in the Miran block in Kurdistan.
The deal also means a windfall for Heritage CEO and founder Tony Buckingham, who holds around 33% of Heritage’s stock.
I bought into Heritage Oil early in the summer only to watch it slide for several months. Luckily I topped up on the way down, ever the optimist.
Virgin
