2010-03-10-2009-12-18

To acquire 50% WI in 2 blocks in Uganda Lake Albert Basin.

Eni SpA, Rome, (NYSE: E) has signed a purchase agreement for a 50% interest in two blocks in Uganda's Lake Albert Basin from Heritage Oil Plc, Calgary, (Toronto: HOC; London: HOIL) for $1.5 billion. The deal was first announced in November.

Eni will pay $1.35 billion in cash and may pay another $150 million in cash or an interest in a mutually agreed upon producing field valued at a similar amount for the interest in and operatorship of blocks 1 and 3A in the Lake Albert sedimentary basin, in which 700 million barrels of oil equivalent have been discovered to date. Heritage will retain an interest in the basin through its interests in two blocks in the Democratic Republic of Congo.

Heritage will use some of the proceeds for the continued development of its program in Kurdistan, Iraq. The company says it may also use a portion of the proceeds for a special dividend to shareholders of between approximately $1.25 and $1.66 per share.

Eni reports that the Lake Albert acquisition is part of its growth strategy in sub-Saharan Africa, where its pre-acquisition operated production is approximately 450,000 barrels of oil equivalent per day.

Heritage chief executive Tony Buckingham says, "The disposal proceeds give Heritage great flexibility enabling the company to focus on its existing exploration and development programs, participate in value-generating acquisition opportunities as and when they arise, as well as giving us the ability to pay a special dividend to shareholders."

Tullow Oil Plc, which holds the remaining 50% interest in blocks 1 and 3A, has until Jan. 17 to exercise its pre-emption rights.

The deal is expected to close in the first quarter of 2010.