re: HOC.TO C$9.25 - Heritage Oil 2005&Q1 - Big news
That's what I call "Big News".. Heritage seems to have advanced their production from their remaining Congo producing field. But even more important is that we now have 2 JV's in IRAQ, a 5% interest in a Russian upstream firm with high likelihood of obtaining sizeable prospects plus a JV in Kazakhstan.. Stay tuned !
stockhouse.ca
HERITAGE OIL CORP A Quick Quote: HOC 9.25 (Even)
Heritage Oil Corporation reports first quarter results 5/16/05
CALGARY, May 16, 2005 (Canada NewsWire via COMTEX) -- Heritage Oil Corporation (TSX: HOC) today announced results for the first quarter of 2005. All figures are in US Dollars.
First Quarter Results: (three months ended March 31, 2005 compared ---------------------- with three months ended March 31, 2004) –
Net production averaged 560 bpd, compared with 485 bpd. –
Oil & gas revenue was $1,450,387 compared with $1,824,926. –
Total revenue was $1.8 million compared with $1.9 million. –
There was a net loss of $437,528 compared with net earnings of $336,012. –
Net basic and diluted losses per share were $0.02 compared with net basic and diluted earnings per share of $0.02. –
Cash and cash equivalents at March 31, 2005 were $26.5 million compared with $20.9 million at March 31, 2004.
Heritage's net condensate, liquid petroleum gas (LPG) and crude oil production in the first quarter averaged 560 bpd, 15% higher than the first quarter of last year and 53% higher than the fourth quarter in 2004. The increase results from commencement of production from the fourth well on the Kouakouala field.
Petroleum and natural gas revenue in the first quarter was $1,450,387, 21% lower than the first quarter of last year. The decrease is due to the periodic nature of condensate sales from the Bukha field, Oman. There were no sales in the first quarter of 2005, while the one sale in Q1 2004 generated revenue of $1,271,772. Revenue from the Kouakouala field in Congo was 184% higher in the first quarter of 2005 compared to the same period last year.
There was a net loss in Q1 2005 of $437,528 (Cdn$532,273) compared to net earnings in Q1 2004 of $336,012 (Cdn$439,346). If foreign exchange losses are excluded, net earnings would have been $239,469 in Q1 2005 and $579,281 in Q1 2004. The higher net earnings in the first quarter of last year was due to the periodic nature of condensate sales from Oman.
The most significant events in 2005 have been the pursuit of three strategic joint ventures. The Company aims to maximize shareholder value and, to achieve this, focuses on the acquisition of reserves and near-term production in new territories. This entails strategic joint ventures with influential local partners in countries with prolific oil and gas reserves.
The first opportunity entered into last year was Iraq (see release dated December 13, 2004) in which Heritage has a dual approach. In northern Iraq and the Autonomous Region of Kurdistan, Heritage has incorporated a joint venture company (with the Eagle Group of Iraq), called Heritage Erbil Oil Limited, which in turn incorporated a wholly-owned Iraqi subsidiary, K Petroleum Company (KPC). KPC is opening an office in Erbil and recruiting an operating and technical team. In southern Iraq, Heritage has incorporated a wholly-owned subsidiary called Heritage Middle East, which has opened an office in Amman, Jordan.
In both northern and southern Iraq, Heritage aims to enter into Memoranda of Understanding with the relevant authorities (including the National Ministry of Oil) to prepare development plans over a number of known fields. The development plans, undertaken at the Company's expense, will take a minimum of six months to complete. On completion Heritage anticipates that the new constitution in Iraq will be in place, along with a new hydrocarbon law, enabling the Ministry of Oil to issue oil and gas licenses. Given that KPC and Heritage will have completed field studies, they should be well placed to be awarded licenses over these fields.
Russia is the second strategic opportunity. Heritage has agreed to acquire a 5% equity interest in a private Russian oil and gas company. Heritage is the only foreign oil and gas company with an interest in this company; other shareholders include such powerful energy concerns as Gazprom (the largest state gas company) and Zarubneft (the second largest state oil company). This opportunity exists for Heritage because of very senior personal relationships developed over the last 15 years or so. The other shareholders will provide Heritage with valuable operational and financial capability, transparency and support, and the ability to acquire projects with potentially large reserves. Heritage will have a 5% equity interest in the private company, but may be able to acquire more than 5% of any given project.
The third strategic opportunity is the CIS, focusing initially on Kazakhstan. Heritage has entered into a Memorandum of Understanding with a local private group involved with the transportation of oil and related products by train, pipeline and ship in the Caspian. The Group is also involved in the storage of crude and oil-related products, banking and hotels. Heritage has been appointed technical partner and operator. The Company believes that a number of opportunities to evaluate and participate in oilfield exploration and possible development will be available in this and following years.
Micael Gulbenkian, Chairman and CEO, said: "Heritage is confident it will complete discussions and begin to move forward on some of these opportunities during the next six to 12 months. While we recognize the risks involved in some of these initiatives, there is considerable potential to add significant shareholder value."
Heritage is an international oil and gas corporation, with principal properties situated in the Republic of Congo, Oman, and Uganda. They have recently acquired an operations office in the Autonomous Region of Iraqi Kurdistan through KPC. Heritage's registered office is located in Calgary, Alberta.
The Company's Common Shares trade on the Toronto Stock Exchange under the symbol HOC.
If you would prefer to receive press releases via email contact Heather Colpitts (heather@chfir.com) and specify "Heritage press releases" in the subject line
FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all statements in this news release - including, without limitation, statements regarding production estimates and future plans and objectives of Heritage - are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
Investors Relations Contacts: Cathy Hume, Cavalcanti Hume Funfer Inc. (CHF Inc.), Te(416) 868-1079 x231, (cathy@chfir.com); Olav Svela, Cavalcanti Hume Funfer Inc. (CHFInc.), Tel (416) 868-1079 x242, Fax (416) 868-6198 (olav@chfir.com); Heritage,European Contact Details: Micael Gulbenkian, Chairman and CEO, Tel +44 870 011 5555,Fax +44 20 7629 3863; Canadian Contact Details: John McLeod, Director, Tel (403)234-9974, Fax (403) 261-1941
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