Shoreline Power Company ups stake in Nigerian subsidiary shared with Heritage

Shoreline Power Company has acquired a further stake in Shoreline Natural Resources, its Nigerian subsidiary formed with Heritage Oil.

The power solutions company has exercised its option to buy a 30% economic interest in Shoreline Natural Resources, which owns a 45% stake in oil mining production OML 30 in Nigeria.

Heritage will receive more than $100m in January 2013 from Shoreline Power, to be used for general corporate purposes and to fund security against the existing facility of Shoreline.

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OML, which includes eight oil fields in Nigeria, reported an average field production of 37,704 barrels of oil per day gross in November.

Heritage is expected to report $52m in revenues for November production.

Heritage Chief Executive Officer, Tony Buckingham, said: "The acquisition of an interest in OML 30 is proving to be a transformational deal for Heritage, providing significant increases in both production and cash flow.

"We expect to see production grow further over the coming year as work programme activity increases across the licence following completion of the acquisition in November 2012. We continue to look for opportunities, including within Nigeria, to develop our portfolio of exploration and production assets further."

Shoreline has received $38.3m towards proceeds from its first crude lifting in the first quarter of 2013 and planning and further works has commenced to improve production.

RD