LONDON, Aug. 7 (UPI) -- Heritage Oil announced it launched an effort to raise cash to finance an effort to move into the oil-rich Niger Delta region of Nigeria.
Heritage in July said it reached an agreement through its Nigerian subsidiary, Shoreline Power Co. Ltd., to acquire a stake in OML 30, a group of eight fields and associated infrastructure in the Niger Delta.
The London-listed energy company said OML 30 is producing, on average, about 35,000 barrels of oil per day.
Heritage said it launched a $370 million so-called rights issue to raise money to acquire a 45 percent stake in OML 30 from Italian energy company Eni, French supermajor Total and Shell. The rest of the deal would be financed by bank loans. The Nigerian National Petroleum Corp. holds the remaining stake.
Heritage said it expected OML 30 to start generating cash as soon as the proposed acquisition is completed.
Heritage Chief Executive Officer Tony Buckinghman said the proposal would be the largest-ever transaction in the region.
"The sheer size and valuation of the oil fields, based on the recently issued independent reserves report, and the use of debt to fund a considerable portion of the purchase consideration make this transaction transformational and highly attractive," he said in a statement.
