Heritage to finance Nigerian project with Iraqi funds

22 August 2012, Sweetcrude, LONDON – OIL explorer, Heritage Oil, jumped 22.4p to 190.75p in London, a 13.3% rise, following news it has struck a deal to sell part of a gas block in Iraq’s Kurdistan region.

The deal means its planned rights issue to partially fund its buying spree in Nigeria’s oil
fields is no longer needed.

Heritage, founded by swashbuckling former security adviser Tony Buckingham, is selling the gas block to Genel Energy in two phases.

It is selling a 26% stake in the Miran Block and an interest in a related joint operating agreement for $156 million (£99 million).

The second part of the deal is a loan of $294 million which can be exchanged for Heritage’s remaining interest in Miran at a later stage.
Heritage’s planned adventure in the Nigerian fields began in June when it paid Shell $850 million for Oil Mining Lease, OML, 30.
Analysts say with fresh funds from the Iraqi deal, Heritage now has enough cash for expansion of its Nigerian venture.

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