Heritage Oil shareholders approve Ugandan asset sale
Published 26/01/2010 | 09:21
Heritage Oil Plc shareholders approved the proposed sale of its Ugandan assets to either Tullow Oil Plc or Eni SpA.
The sale is conditional on formal approval from the Ugandan government, who will decide which of the proposed purchasers to accept. The sale is expected to be completed in the first quarter, the Jersey-based company said in a statement today.
Shareholders of the UK explorer voted almost unanimously for the sale of Heritage’s interests in Blocks 1 and 3A in Uganda’s Lake Albert Rift Basin, with 99.99pc of votes cast approving the transaction.
Eni and Tullow are competing for Heritage Oil’s 50pc share in the blocks. Tullow, which co-owns the blocks, has been seeking to take over full ownership, derailing Eni’s efforts to secure a foothold in Uganda.
“These results prove the overwhelming support for this transaction and the Board’s strategy,” Chief Executive Officer Tony Buckingham said in the statement. Shareholders also approved directors being able to buy back shares.