Heritage Oil Interim Management Statement

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES.


Heritage Oil Plc ("Heritage" or the "Company") (TSX:HOC)(LSE:HOIL), an
independent upstream exploration and production company, issues its Interim
Management Statement for the period from 1 January 2013 to 15 May 2013. 


Corporate highlights



--  Total revenues of $236.2 million in the first quarter 2013 ($2.3
    million, Q1 2012), of which $234.5 million was from the interest in
    Shoreline Natural Resources Limited ("Shoreline"), Nigeria, and $1.7
    million was from the interest in the Zapadno Chumpasskoye Field, Russia.
--  Production for the first quarter 2013, net to Heritage, averaged 7,373
    bopd (605 bopd, Q1 2012). 
--  The major temporary factors causing production to be lower than expected
    in the first quarter have been addressed with current gross production
    from OML 30 of c.20,000 bopd and expected to be back over 35,000 bopd
    within a month. 
--  2013 gross production from OML 30 is expected to average 35,000 bopd. 
--  Cash position of $184.1 million, as at 31 March 2013, excluding
    approximately $405 million related to the Ugandan tax dispute and $101
    million used as part security in respect of OML 30 financing.  
--  Excess cash led to a debt repayment of $52.5 million in April 2013 to
    reduce the bridge facility from $550 million to $497.5 million. 
--  Refinancing of the bridge facility by way of a five year $550 million
    senior secured revolving reserve based facility is expected to be
    completed in June 2013. 



Operational highlights



--  Expanded the exploration portfolio with the farm in to two licences in
    Papua New Guinea ("PNG"); Petroleum Prospecting Licence 319 ("PPL 319")
    and Petroleum Retention Licence 13 ("PRL 13"). 
--  Acquisition of 2D seismic has begun across the Tuyuwopi structure in PPL
    319. 
--  Processing has been completed of the reconnaissance seismic survey
    acquired across the Kyela Block, Tanzania, confirming structures
    previously indicated by the gravity data. 
--  Acquisition of the 2D seismic programme on the Rukwa Licence, Tanzania,
    has been completed and the data is being processed. 



Tony Buckingham, Chief Executive Officer, commented:

"Heritage achieved a transformational increase in production and revenue in the
first quarter of 2013 following the acquisition of an interest in the world
class OML 30 licence in Nigeria. Production from OML 30 is increasing back to
previous levels and we expect to see gross production at 35,000 bopd within a
month. Further substantial gains are anticipated in the second half of this year
through optimising current facilities and improving the gas lift system. Our
acquisition of an interest in OML 30 remains the largest upstream onshore asset
transaction in sub-Saharan Africa on a 2P basis and positions Shoreline as one
of the largest indigenous oil companies in Nigeria. Activity across the
exploration portfolio has also increased with active work programmes in Tanzania
and Papua New Guinea."


PRODUCTION 

Production for the quarter, net to Heritage, averaged 7,373 bopd with 6,932 bopd
from the interest in Nigeria and 441 bopd from Russia. As previously announced,
production in Nigeria was impacted by a manifold issue and strikes by local
workers. Both of these have been resolved resulting in gross production
increasing quickly to a current level of c.20,000 bopd and it is expected to be
back over 35,000 bopd within a month. For 2013, gross production from OML 30 is
expected to average 35,000 bopd.


During the period, the OML 30 flow stations were temporarily shut down as a
result of a strike from local employees responsible for non-technical work in
the plants. Access to the stations was restricted but following a series of
meetings, nearly all of the workers at the stations in OML 30 accepted
compensation in line with the adjacent licences. This has resulted in the key
fields being brought back on production. Technical projects, notably gas lift
compressor refurbishment, did not stop during this period. 


In the first quarter of 2013, National Petroleum Development Company ("NPDC"),
the operator, and Shoreline agreed the 2013 budget, which sets out the work
programme for the year. The 2013 budget includes the procurement and
installation of gas lift compressor units, five generators, two air compressors,
two export pumps and three metering units. The first gas compressor is expected
to be delivered in June. Over the course of this year further work will continue
aimed at optimising existing facilities. 


Shoreline believes that the OML 30 fields were producing inefficiently, with
intermittent gas lift resulting from sub-optimal compressor maintenance and a
lack of refurbishment and historic sabotage of flowlines and equipment. The
principal elements of the development plan in the short-term include
optimisation of gas lift in existing wells, both producing and non-producing,
reopening wells currently shut-in and drilling a number of new, chiefly
horizontal, wells to increase recovery and production rates with drilling
commencing in the second half of 2014, as previously announced. The flowline and
compressor repairs expected to be carried out in 2013 should enable all wells to
operate at optimum rates going forward. 


Both Shoreline and NPDC have engaged with communities within the licence area.
This engagement will lead to a long-lasting Global Memorandum Of Understanding
forming the framework and policies of the community/operator interface.


The world class nature of OML 30 and the significance of the acquisition through
Shoreline of an interest in it was highlighted in May 2013, with Africa investor
(Ai) Infrastructure Investment Awards 2013 naming Shoreline as Developer of the
Year.


Production in Russia was impacted by a workover to replace the ESP on the
horizontal well. The work was delayed due to availability of specialised
equipment. The work has been successfully completed and the well is back on
production and currently cleaning up. It is expected the well will be back at
its pre-workover rate by the end of May. 


EXPLORATION 

Papua New Guinea 

In April 2013, Heritage agreed to acquire up to an 80% working interest in PPL
319 and PRL 13 from LNG Energy. In return for earning an 80% working interest
and operatorship, Heritage will fund the costs of the seismic acquisition and
the cost of drilling an exploration well. Government approval has been received
and the work programme has begun with acquisition of 44 kilometres of 2D Seismic
data over the Tuyuwopi structure. This will be followed by the acquisition of
approximately 92 kilometres of reconnaissance seismic over leads identified on a
large gravity high on the PPL 319 licence.


The licences are onshore and close to multiple producing fields and discoveries,
including the multi-TCF Triceratops and Elk/Antelope discoveries. There is also
a close proximity to current and under-construction infrastructure with the
Kutubu oil export pipeline and the PNG Liquefied Natural Gas pipeline crossing
the acreage.


Tanzania 

The work programmes continue on the Rukwa and Kyela licences. In January 2013 a
100 kilometres reconnaissance seismic survey across the Kyela Block was
acquired, confirming structures previously indicated by the gravity data. The
interpretation of this processed data will enable the positioning of targeted
infill 2D seismic which is scheduled to be acquired later this year.
Approximately 600 kilometres of 2D seismic has been acquired in the southern
part of the Rukwa basin. This consisted of both lake and land data and was
targeted at leads identified on the legacy seismic data. It is currently being
processed.


CORPORATE 

As at 31 March 2013, Heritage had a cash position of $184.1 million, excluding
amounts related to the Uganda tax dispute of approximately $405 million and $101
million used as part security in respect of OML 30. 


The average realised commodity price achieved in Nigeria was $116.87 per barrel
in the first quarter of 2013. Cash has been received from all of the revenue
generated in the first quarter. Over the quarter, there were seven liftings in
Nigeria which have generated revenues net to Heritage of $234.5 million. Going
forward, liftings are expected at approximately one per month. Excess cash flow
enabled Shoreline to make a payment of $52.5 million in April 2013 to reduce the
bridge loan from $550 million to $497.5 million. The refinancing of the bridge
loan to a reserve based loan has recently been launched and is expected to be
closed in June 2013, at which time the funds from Shoreline Power exercising
their option are also due to be received. 


Heritage holds common shares ("Shares") of PetroFrontier for investment purposes
and currently holds 19.98% of the outstanding Shares of PetroFrontier.
PetroFrontier is listed on the TSX Venture Exchange and has a high-impact
drilling programme in Australia targeting billions of barrels of resources.


UGANDA 

As previously announced, a number of proceedings in connection with the sale of
the Group's interests in Blocks 1 and 3A in Uganda to Tullow Uganda Limited
remain ongoing. Heritage Oil and Gas Limited ("HOGL") continues to challenge
both the Uganda Revenue Authority ("URA") in the Ugandan courts and, in
accordance with the Production Sharing Agreements, the Ugandan government
through international arbitration proceedings in London, which commenced in May
2011. The arbitration tribunal ruled in April 2013 that the determination of tax
was outside its jurisdiction, but that there were two areas of HOGL's claims
which it will consider, in respect of contractual income tax stabilisation
clause protection and breach of other contractual obligations. 


The determination by the arbitral tribunal marks the end to the preliminary
phase. The proceedings have now continued to deal with the merits phase of
Heritage's contractual claims against the Ugandan government and the underlying
substantive Ugandan tax matters remain under appeal in the Ugandan courts.


In April 2011, Tullow made a payment to the URA and subsequently filed a claim
in the High Court in England seeking compensation for alleged breach of contract
as a result of HOGL's and Heritage's refusal to reimburse Tullow. In March 2013,
an 11 day hearing took place in the Commercial Court in London. A first instance
judgment is expected during the course of 2013. 


Notes to Editors 



--  Heritage is listed on the Main Market of the London Stock Exchange and
    is a constituent of the FTSE 250 Index. The trading symbol is HOIL.
    Heritage has a further listing on the Toronto Stock Exchange (TSX:HOC). 
    
--  Heritage is an independent upstream exploration and production company
    engaged in the exploration for, and the development, production and
    acquisition of, oil and gas internationally.  
    
--  Heritage has producing assets in Nigeria and Russia and exploration
    assets in Tanzania, Papua New Guinea, Malta, Libya and Pakistan. 
    
--  All dollars are US$ unless otherwise stated. 
    
--  For further information, please refer to our website,
    www.heritageoilplc.com. 



If you would prefer to receive press releases via email please contact Jeanny So
(jeanny@chfir.com) and specify "Heritage press releases" in the subject line.


FORWARD-LOOKING INFORMATION: 

Except for statements of historical fact, all statements in this news release -
including, without limitation, statements regarding production estimates and
future plans and objectives of Heritage - constitute forward-looking information
that involve various risks and uncertainties. There can be no assurance that
such statements will prove to be accurate; actual results and future events
could differ materially from those anticipated in such statements. Factors that
could cause actual results to differ materially from anticipated results include
risks and uncertainties such as: risks relating to estimates of reserves and
recoveries; production and operating cost assumptions; development risks and
costs; the risk of commodity price fluctuations; political and regulatory risks;
and other risks and uncertainties as disclosed under the heading "Risk Factors"
in its Prospectus dated 6 August 2012, as supplemented by a supplementary
prospectus dated 23 August 2012, and elsewhere in Heritage documents filed from
time-to-time with the London Stock Exchange and other regulatory authorities.
Further, any forward-looking information is made only as of a certain date and
the Company undertakes no obligation to update any forward-looking information
or statements to reflect events or circumstances after the date on which such
statement is made or reflect the occurrence of unanticipated events, except as
may be required by applicable securities laws. New factors emerge from time to
time, and it is not possible for management of the Company to predict all of
these factors and to assess in advance the impact of each such factor on the
Company's business or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those contained in any
forward-looking information. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Heritage Oil Plc
Tony Buckingham
CEO
+44 (0) 1534 835 400
info@heritageoilplc.com


Heritage Oil Plc
Paul Atherton
CFO
+44 (0) 1534 835 400
info@heritageoilplc.com


Heritage Oil Plc - Investor Relations
Tanya Clarke
+44 (0) 20 7518 0838
ir@heritageoilplc.com
www.heritageoilplc.com


Media Enquiries
Ben Brewerton
+44 (0) 20 7831 3113
heritageoil.sc@fticonsulting.com


Media Enquiries
Natalia Erikssen
+44 (0) 20 7831 3113
heritageoil.sc@fticonsulting.com


Canada
Cathy Hume
+1 416 868 1079 x231
cathy@chfir.com


Canada
Jeanny So
+1 416 868 1079 x225
jeanny@chfir.com
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