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Friday, March 18, 2011

Heritage rejects $1.9b takeover bid - Who will be the next suitor for Heritage???




Exploration company Heritage Oil has rejected a £1.2 billion ($1.9 billion) takeover approach from a Middle Eastern company.

The Abu Dhabi-based suitor, whose name was not known, recently sent Heritage a letter offering to pay 425 pence per share. Heritage stock looked cheap following news on 26 January. Heritage found gas but not oil in the Miran West field, Kurdistan region of Iraq.

Whenever a company has been hit to the extent that Heritage has been hit recently then the perception of cheapness makes them look attractive. Emerging speculation suggest there could be one more company (possibly Chinese) were considering making an approach worth around 600 pence per share.

Heritage Asset overview 
Kurdistan Region of Iraq

The Miran West-2 well is being drilled to encounter the deeper exploration objectives in the  underlying Jurassic and Triassic structures which have the potential to contain substantial  quantities of hydrocarbons. The well has been re-engineered and it is  expected that the deepening of the Miran West-2 well to 4,600 metres will complete during the third quarter of  2010.

Other Operations


336 kilometres of 2D seismic has recently been acquired on the Zamzama North Block in Pakistan,  here a number of structural leads have already been mapped.  Work programmes across the portfolio are progressing with wells planned in Malta, Russia and Pakistan for the second half of 2010.

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