Heritage Oil to acquire stake in Libyan oil group

In a move that will provide access to key producing fields and other license opportunities in Libya, Heritage Oil PLC reported that its wholly owned subsidiary, Heritage Energy International Ltd., has acquired a controlling 51% interest in Sahara Oil Services Holdings Ltd. (SOSH) for $19.5 million in cash.

SOSH, an established oil field service provider in Libya, owns the entire share capital of Sahara Oil Services Ltd. (SOS). SOS has the necessary long-term permits and licenses to provide onshore and offshore oil field services in Libya as well as the rights to own and operate oil and gas licenses, Heritage said.

Heritage will use SOS, it said, to assist with the drilling of its targets offshore Malta. In addition, Heritage is actively looking to contract a rig to bring forward the drilling of Area 7. Heritage has an extensive data set of 5,000 km of 2D seismic, including data acquired in July, which indicates the presence of multiple prospects and leads across Areas 2 and 7. The initial well planned to be drilled will be targeting 500 MMboe.

SOS, which is based in Benghazi with a large operational yard and equipment, was established in April 2009 and has been granted long-term licenses to provide full oil field services in Libya, including the ability to drill onshore and offshore and hold both oil and gas licenses, Heritage said.

During the last 5 months, Heritage established a base in Benghazi and has been in discussions with senior members of the National Transitional Council (the legitimate and recognized government of Libya), the executive committee (which is NTC’s executive arm), and Libya’s National Oil Co. and other subsidiaries

“The dialogue with these parties continues through SOS with Heritage exploring ways to assist the NTC and the state oil companies rehabilitate certain of their existing fields and recommence production,” Heritage said.

Heritage has a producing property in Russia and exploration projects in the Iraq’s Kurdistan region, Congo (former Zaire), Malta, Pakistan, Tanzania, and Mali.

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