Source: Heritage Oil
Heritage Oil updated the proposed disposal of the company's entire interests in Block 1 and Block 3A in Uganda to Tullow Uganda Limited. The only substantive condition outstanding to completing the transaction is the approval by the Government of Uganda.
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. Following this, Heritage expects to receive formal consent and to close the transaction shortly thereafter.
As announced previously, Tullow exercised its right of pre-emption on January 17, 2010, to acquire Heritage's 50% interest in Blocks 1 and 3A in Uganda for a cash consideration on closing of US$1.35 billion, with deferred consideration of up to US$150 million in cash or an interest in a mutually agreed asset. This disposal was subsequently approved by Heritage shareholders at a general meeting on 25 January 2010.