Heritage Lands in Nigeria Through Indigenous Partnership

Heritage Oil has reported that Shoreline Natural Resources, a special purpose private Nigerian company formed between a subsidiary of Heritage and a local Nigerian partner, Shoreline Power Co., has reached agreement to acquire, by way of assignment, a 45% participating interest in Nigeria’s producing block OML 30, together with a 45% interest in other assets under the JOA for OML 30.

Under the agreement Heritage will by a cash consideration of $850 million, net of costs.

OML 30 is being sold by Shell Petroleum Development Co. of Nigeria, Total E&P Nigeria and Nigerian Agip Oil Co. who each own participating interests of 30%, 10% and 5% respectively in the block. The remaining 55% participating interest is held by NNPC.

OML 30 is located onshore the Niger Delta and includes eight producing fields and associated infrastructure, including a segment of the 850,000 bpd capacity Trans-Forcados pipeline. The field currently produces at a rate of about 35,000 bpd and estimates have OML 30 sitting on proved and probable reserves of 707 million barrels of oil and 2.5 Tcf gross reserves of gas.

Heritage said there is potential to ramp up production on OML 30 in the short term by refurbishing and maintaining existing infrastructure.