By OGJ editors
HOUSTON, June 7 -- Afren PLC, London, agreed to buy the Congo (Brazzaville) holdings of Heritage Oil Corp., Calgary, for $28 million in cash and 2 million shares of Afren preferred stock.
Heritage Congo Ltd. owns a 25% working interest in the Kouakouala A production permit, a 30% working interest in Mengo oil field on the Kouakouala B development permit, and a 14% working interest in the La Noumbi exploration permit. In 2005, Kouakouala produced 1,280 b/d.
The transaction is expected to close later this year, subject to certain conditions precedent, including customary governmental approvals and waiver of preemption rights by its partners.
Heritage wants to direct its international focus on Russia and the Middle East, a spokesman said.