Heritage Sells Kurdistan Asset

Sale of 49% interest In Miran Block in Kudistan region of Iraq.

Heritage Oil Plc. (Toronto: HOC) has closed on its previously announced sale of its remaining 49% interest in the Miran Block in the Kurdistan Region of Iraq through about $294 in transferred debt.

In lieu of a cash payment, Heritage transferred title of its 49% participating interest in the block to one of its creditors, Genel Energy Plc. In exchange, Genel has written off $294 million in debt it made to Heritage.

The Regional Council for the Oil and Gas Affairs of Kurdistan has approved the transfer in ownership. Following completion and receipt of formal approval of the transfer by the Regional Council, Heritage no longer has an interest in Kurdistan.

"We are delighted to have received final approval for the disposal which means we have not only monetised the asset at an attractive valuation but have also used the proceeds to fund a significant part of our entry into a new region through the recent acquisition of a major interest in OML 30, Nigeria. This brings the total disposal proceeds generated by Heritage from asset sales to over $2 billion," said Heritage chief executive Tony Buckingham.

Heritage is an independent upstream exploration and production company with assets in Africa, the Middle East and Russia. Heritage has producing assets in Nigeria and Russia and exploration assets in Malta, Tanzania, Pakistan and Libya.