Oil & Gas Corporate News
Heritage Oil (LON:HOIL) Plc (BUY, £7.00) (HOIL, 410.5p, ? (0.39%)) announced today that Heritage Oil & Gas Limited has completed the disposal of its entire interests in Block 1 and Block 3A (the "Assets") in Uganda. Tullow Uganda Limited ("Tullow") has paid cash consideration of US$1.35 billion and an additional contractual settlement amount of US$100 million, of which Heritage has received and retained US$1.045 billion with an additional approximately US$405 million in part deposited with the Government of the Republic of Uganda and in part held in escrow pending resolution of a tax dispute with the Ugandan Revenue Authority. Receipt of the funds provides Heritage with a strong balance sheet with cash of approximately US$1.2 billion. It is the Company's intention to return a portion of these funds to shareholders through a special dividend of up to 100 pence per share in August 2010. Further details of the dividend, including a timetable, will be provided shortly. The remainder of Heritage's funds, of over US$0.7 billion will be allocated between accelerating the work programmes on the existing portfolio and potential acquisitions.
Tullow Oil Plc (LON:TLW) (TLW, 1239.0p, ? (5.09%)) announced that on 26 July 2010, Tullow Uganda Limited ("Tullow Uganda"), a subsidiary of Tullow, has completed the US$1.35 billion acquisition of a 50% interest in Blocks 1 and 3A in Uganda from Heritage Oil & Gas Limited ("HOGL") with an additional contractual settlement amount of US$100 million. Following conditional Government approval on 6 July, all conditions have now been met and the assets have been transferred to Tullow Uganda. Tullow now plans to enter into transactions with CNOOC and Total to farm down two thirds of its interests in Blocks 1, 2 and 3A in the Lake Albert Rift Basin. This will result in a unified partnership to accelerate development of the basin and turn Uganda into a significant oil producing nation.
Mining Corporate News
Berkeley Group Hldgs (LON:BKG) Mineral Resources Plc (BMR, 1.8p, ? (1.41%)) provided an update on progress following the granting of an option to secure the rights to process the entirety of the remaining stockpiles of lead and zinc tailings at Kabwe Mine, Zambia. In order to ensure that verification is completed swiftly, BMR has appointed international mining project management company Turner and Townsend to oversee the process. Legal due diligence is proceeding well…
