BUSINESS

Strategic analysis of Heritage Oil PLC

Table of Contents

Introduction3

Analysis and Critical Evaluation4

Asset Concentration4

Heritage Merger6

Business and Financial Metrics6

Business Segments7

Production Sites7

Strategic analysis8

Strong upstream operations8

Conclusion9

Recommendation10

References11

Strategic analysis of Heritage Oil PLC

Introduction

Heritage Oil (HOIL) is the holding company of the Heritage Group and is involved in production and exploration of natural gas and oil. Company exploration development and appraisal asset found in region of Iraq named Kurdistan. Company also operates in Tanzania, Malta, Libya, Pakistan, Congo, and in Russia. It operates in Africa, the UK, Middle East, the US and Russia. It is headquartered in UK and employs around 139 people. The company recorded revenues of $9 million in the fiscal year ended December 2011. Its net loss was $66.9 million in fiscal 2011. Heritage Oil (HOIL), which is a holding company of the Heritage Group and is engaged in the exploration and production of oil and natural gas. The company's key products and activities include the following: Products: Oil Natural gas Activities: Exploration and production of oil and natural gas The following companies are the major competitors of Heritage Oil Plc Imperial Oil Limited Claude Resources Inc. Aminex PLC The British oil company Heritage Oil Plc has announced the discovery of the largest deposit of gas located in the territory of Iraq. The British oil company Heritage Oil Plc has announced the discovery of the largest deposit of gas located in the territory of Iraq. Located in the Kurdistan region of the Miran West- 2 tank holds, according to preliminary data, 350 billion cubic meters of gas and 75 million barrels of oil have been explored. It is the largest discovery in the last three decades in the aforementioned country (MENABDE 2008). "The greatest discovery of gas with exceptional flow rates makes it one of the largest gas fields discovered in Iraq", said the executive director of the oil company, Tony Buckingham. Company Heritage Oil Plc, whose specialists have discovered this well, evaluated it at about $ 2.7 billion. In the statement disclosed today that company said hydrocarbons extraction will begin in 2015. The infrastructure for transportation of gas to their markets is not so highly developed in the region as the infrastructure that is used for oil. One of the possible options for Heritage is supplying gas to Europe through the pipeline markets, although the pipe will not be in operation before the year laid down for the start of the implementation of the production.

Analysis and Critical Evaluation

Heritage is headquartered at Jersey, Channel Islands. The company's strategy has been to acquire and invest in exploration and early development opportunities in Africa, the Middle East and Russia. In October 2011, the company's wholly- owned subsidiary, Heritage Energy International Limited acquired 51% interest in Sahara Oil Services Holdings Limited. This acquisition will enable the company to expand its portfolio by gaining access to large producing fields in Libya (LUCIANI 2011).

Asset Concentration

Diversification of Heritage assets would reduce risks and enable value-creating opportunities. Nigeria, Business represents 65% of Heritage total projects. In 2010, 100 % of Heritage production ...