Heritage Oil's first quarter revenues and production increases

Heritage Oil's revenue soared in the first quarter on the back of an increase in production and on strong performance of interests.

Heritage Oil's revenue soared in the first quarter on the back of an increase in production and on strong performance of interests.

Total revenue came to $236.2m in period, up from $2.3m a year earlier, including $234.5m from its stake held in Shoreline Natural Resources in Nigeria and $1.7m from interest in the Zapadno Chumpasskoye field in Russia.

Results were boosted by a rise in production to 7,373 barrels of oil per day (bopd) in the first quarter from 605 bopd in the comparative period a year ago.

However, the company said production came in lower than expected following worker strikes in Nigeria.

The issue has since been resolved, resulting in an increase of gross production to 20,000 bopd which is anticipated to rise to 35,00 bopd this year.

During the year, the group acquired an interest in the OML 30 licence in Nigeria, its largest upstream onshore asset transaction in sub-Saharan Africa on a 2P (proven plus probable) basis.

"Heritage achieved a transformational increase in production and revenue in the first quarter of 2013 following the acquisition of an interest in the world class OML 30 licence in Nigeria," said Chief Executive Officer, Tony Buckingham.

"Production from OML 30 is increasing back to previous levels and we expect to see gross production at 35,000 bopd within a month."

Heritage had a cash position of $184.1m at the end of March, excluding $405m relating to a Ugandan tax dispute and $101m for OML 30 financing.

The company continues to challenge the Uganda Revenue Authority in courts over its tax dispute in connection with the sale of interests in Blocks 1 and 3A in Uganda to Tullow Uganda.

Shares rose 7.98% to 144.80p at 09:12 Thursday.

RD

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