Heritage Oil gets final approval for US$1.35-billion sale of Ugandan properties

By The Canadian Press

CALGARY - Heritage Oil PLC (TSX: HOC.TO) has cleared the final hurdle in its attempts to sell its stake in two Ugandan oil fields after securing government approval for the transaction, the company said Wednesday.

The Canadian-listed company, which has its headquarters in the U.K., said the Ugandan government has green-lighted a sale that will see Tullo Uganda Ltd. buy Heritage out of the properties for more than US$1.35 billion.

Heritage and Tullo previously each held 50 per cent stakes in the two oil fields.

Heritage had signed an agreement to sell the properties to Eni International, Italy's national oil producer, when Tullo exercised its right to purchase the rest of the fields last January.

"Heritage has received a letter from the government stating that it supports Heritage's sale and transfer of the disposed Assets and that it will conclude its review of the transaction within eight weeks," the company said in a statement.

"Following this, Heritage expects to receive formal consent and to close the transaction shortly thereafter."

A total of 27 wells have been drilled and 700 million barrels of oil identified in the region, and Heritage has said the two blocks are believed to hold more than 1.5-billion barrels of potentially untapped oil.

Tullow will pay the US$1.35 billion in cash to Heritage, plus up to US$150 million or an interest in a mutually agreed upon asset