SHORELINE Power Company has acquired a further stake in
Shoreline Natural Resources, its Nigerian subsidiary formed with
Heritage Oil.
The power solutions company has exercised its option to buy a 30 per cent economic interest in Shoreline Natural Resources, which owns a 45 per cent stake in oil mining production OML 30 in Nigeria.
Heritage will receive more than $100 million (N16 billion) in January 2013 from Shoreline Power, to be used for general corpaorate purposes and to fund security against the existing facility of Shoreline.
OML, which includes eight oil fields in Nigeria, reported an average field production of 37,704 barrels of oil per day gross in November.
Heritage is expected to report $52 million in revenues for November production.
Heritage Chief Executive Officer, Tony Buckingham, said, “the acquisition of an interest in OML 30 is proving to be a transformational deal for Heritage, providing significant increases in both production and cash flow.
“We expect to see production grow further over the coming year as work programme activity increases across the license following completion of the acquisition in November 2012. We continue to look for opportunities, including within Nigeria, to develop our portfolio of exploration and production assets further.”
Shoreline has received $38.3 million towards proceeds from its first crude lifting in the first quarter of 2013 and planning and further works has commenced to improve production.
Heritage had earlier acquired the OML 30 licence block, one of the largest in Nigeria with eight fields currently in production, for £540 million in a deal with a group of major oil companies including Shell.
Heritage stated that the acquisition provides a step change in its production, reserves and cash generation.
“We have acquired an asset with significant upside potential upon which we can continue to build a presence in the country,” said Chief Executive, Tony Buckingham.
“This reaffirms the aim of Heritage to generate long-term shareholder value through a strategy which includes the acquisition of opportunities across the value chain at attractive metrics.
“We look forward to continuing to build our presence in Nigeria through Shoreline Natural Resources, which we expect to be one of the leading indigenous oil companies in Nigeria.”
The power solutions company has exercised its option to buy a 30 per cent economic interest in Shoreline Natural Resources, which owns a 45 per cent stake in oil mining production OML 30 in Nigeria.
Heritage will receive more than $100 million (N16 billion) in January 2013 from Shoreline Power, to be used for general corpaorate purposes and to fund security against the existing facility of Shoreline.
OML, which includes eight oil fields in Nigeria, reported an average field production of 37,704 barrels of oil per day gross in November.
Heritage is expected to report $52 million in revenues for November production.
Heritage Chief Executive Officer, Tony Buckingham, said, “the acquisition of an interest in OML 30 is proving to be a transformational deal for Heritage, providing significant increases in both production and cash flow.
“We expect to see production grow further over the coming year as work programme activity increases across the license following completion of the acquisition in November 2012. We continue to look for opportunities, including within Nigeria, to develop our portfolio of exploration and production assets further.”
Shoreline has received $38.3 million towards proceeds from its first crude lifting in the first quarter of 2013 and planning and further works has commenced to improve production.
Heritage had earlier acquired the OML 30 licence block, one of the largest in Nigeria with eight fields currently in production, for £540 million in a deal with a group of major oil companies including Shell.
Heritage stated that the acquisition provides a step change in its production, reserves and cash generation.
“We have acquired an asset with significant upside potential upon which we can continue to build a presence in the country,” said Chief Executive, Tony Buckingham.
“This reaffirms the aim of Heritage to generate long-term shareholder value through a strategy which includes the acquisition of opportunities across the value chain at attractive metrics.
“We look forward to continuing to build our presence in Nigeria through Shoreline Natural Resources, which we expect to be one of the leading indigenous oil companies in Nigeria.”
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