Heritage Reportedly Rejects Overture

The Financial Times reports that Heritage Oil has received an informal takeover offer from an unnamed Abu Dhabi based suitor.

Heritage is understood to have rejected the offer, which would value the company at £1.2bn. The potential offer represents a premium of 135.3p per share over Heritage’s closing price of 289.7p on Wednesday.

In late January Heritage said it has discovered the largest gas field in Iraq for 30 years.

Investors in Heritage however had been hoping for oil and expressed their lack of enthusiasm by selling off the company’s shares, which are yet to recover.

The company has estimated the find in the Miran area west of Suleimaniya ranges 6.8 to 9.1-trillion cubic feet (approximately 192-257 billion cubic meters) of natural gas.

Heritage estimates costs of $2.2bn (£1.4bn) to develop the Miran project to the end of 2015.

Read the Full Article from the Financial Times HERE