Heritage Oil Plc, Tullow Oil plc's 50% partner in Blocks 1 and 3A in Uganda, today issued the following press release.
Heritage Oil Plc (LSE: HOIL), an independent upstream exploration and production company, issues an update on the proposed disposal of the Company's entire interest in Block 1 and Block 3A ("the Disposed Assets") in Uganda.
Heritage announces that ENI International B.V. ("Eni") has terminated the sale and purchase agreement entered into with Heritage on 18 December 2009 ("Eni SPA") with immediate effect. The termination followed Tullow Uganda Limited's ("Tullow") exercise of a pre-emption right with respect to the transaction and was allowed under the terms of the Eni SPA.
Eni's termination should expedite completion of the sale and purchase agreement entered into between Heritage and Tullow on 26 January 2010, which is on the same terms and conditions as the Eni SPA. Heritage and Tullow are working closely with the Ugandan Government ("Government") to obtain the formal approval of the sale, which is expected imminently. A formal request for consent to transfer the Disposed Assets to Tullow was submitted to Government on 2 February 2010 and the transaction is expected to close within the first quarter of 2010.