While it awaits the final tax bill from selling its Ugandan assets, Heritage Oil has focused its attention on Kurdistan, where it is currently drilling the Miran West-2 well to test March's oil discovery there. Initial testing indicates the presence of hydrocarbon-bearing reservoirs in addition to those already announced, which provides the scope to increase the already significant resource potential. The well is continuing to drill towards its 4,600m target depth and a full result is expected in late September or early October.
Heritage is planning to start further seismic studies over the Miran block later this year to help define further drilling locations and to appraise Miran West's scale. Further appraisal drilling there should start by mid-2011, subject to rig availability, and management also plans to drill an exploration well in Miran East next year.
Payment of a 100p-a-share special dividend from the $1.45bn (£935m) Ugandan sale proceeds leaves a post period-end cash pile of around $700m - that excludes $283m placed in escrow pending resolution of the Uganda tax issue. Discussions over that have consumed management time and delayed other projects, including drilling a high-potential prospect in Malta.
Prior to these results, Evolution Securities was forecasting a full-year loss per share of 6.37¢.
| HERITAGE OIL (HOIL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 310p | MARKET VALUE: | £893m | |
| TOUCH: | 310-311p | 12-MONTH HIGH: | 585p | LOW: 298p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 131¢* | NET CASH†: | $8.8m | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢)† |
|---|---|---|---|---|
| 2009 | 0.85 | -12.1 | -5 | nil |
| 2010 | 2.46 | -12.3 | -4 | nil |
| % change | +190 | - | - | - |
*Includes intangible assets of $146m, or 51¢ a share †Excludes special dividend and proceeds from selling Ugandan assets £1=$1.55 | ||||
