On Heritage Oil - Bonus on the report
Kutokana na ripoti ile (kwa waliosoma wataweza kuunganisha mambo)
1: Taarifa ya kwanza
History
The Company was formed in 1992 to exploit oil reserves in Africa, the Middle East and Russia. It was first listed on the London Stock Exchange in 2008 and moved its head office from Calgary to Jerseyalso in 2008.
Operations
The Company is the operator and holds 50% interests in two licences in the Albert Basin of the Western Rift Valley of Uganda. Recent exploration activity has focused on the eastern shores of
Lake Albert which straddles the border of Uganda and the Democratic Republic of Congo, and Kurdistan. The Company is also active in Russia, Malta, Mali and Tanzania.
Following enormous success in drilling the Albert Basin in 2008, May 2009 saw the company discover a multi-billion barrel oil field following the test results of the Miran West well in Kurdistan.
2009 has also seen the company dispose of its asset in Oman in order to focus on its core assets.
Tony Buckingham still owns 33.2% of the company.
2: Taarifa ya Pili:
Tales of Tony Buckingham
By MATTHEW VELLA, Malta Today 6/7/08
Jul 10, 2008 - 7:48:22 AM
Controversial and notorious nothing could be closer to the truth for the man whom the Maltese government has licensed to conduct oil exploration in the islands south-eastern shelf, close to the disputed median line with Libya. That man is British oil tycoon Tony Buckingham, chief executive of the Canadian company Heritage Oil. Last December, Heritage was given two offshore areas spread over 18,000 square kilometres in a 30-year deal.
But Buckingham is not the average chief executive who slogged his way up through boardroom battles.
The truth can be found right inside Heritage Oil's 300-page prospectus, which explicitly points out how Mr Buckingham has had no involvement with any military or security operators since the spring of 1998.
This, then, is how Tony Buckingham's mercenary past in Africa and beyond, his befriending of dictators and oil barons, took him to the London listing of the $940 million Heritage Oil, with its assets in Russia, Oman, the Democratic Republic of Congo, Mali, Pakistan, Kurdistan, and now even in Malta.
Friends in dark places
Only two weeks ago, mercenary Simon Mann went on trial in Equatorial Guinea. Mann, a former Scots Guard, is imprisoned in Equatorial Guinea, and faces trial for leading the failed coup to depose oil dictator Teodoro Obiang Nguema, who has ruled the country since 1979.
He was arrested in 2004 disembarking from a plane with 60 other mercenaries in Harare, the capital of Zimbabwe.
Today, Heritage Oil's prospectus makes it clear that Buckingham "has had no substantive business contact with Simon Mann since 1998 and no contact of any nature with him since 2000. He had no knowledge of Mr Mann's activity Guinea."
And the reason for such a dubious disclaimer is Mann's and Buckingham's past in the mercenary outfit Executive Outcomes, which they used to recover oil installations belonging to Heritage Oil from UNITA rebels in Angola.
For Tony Buckingham, the fact that his old friend is on trial for the foiled coup has brought yet more digging inside his business connections in the Caribbean tax havens.
Mann is the director of the company Logo Limited, the company he used for purchasing arms and paying mercenaries. The Equatorial Guinea legal action is connecting Logo to Hansard Trust Company Ltd and Hansard Management companies which hold one share in each of four companies within Heritage Oil's corporate structure. What is known is that both Logo and Hansard have the same business address in St Peter Port.
There is yet, no evidence links Buckingham with Mann, although it's the latest in a series of connections between the two.
War mercenary
Born in 1951, Heritage's prospectus says that in 1989, Anthony Leslie Buckingham, a former British SAS officer, became an adviser to the government of Angola and assisted the Angolan Oil Ministry in establishing Sonangol as an oil and gas exploration and production company. He founded Heritage Oil in 1992, and together with Sonangol held operations there.
In 1993, when the Angolan holding was overrun by communist UNITA rebels, Buckingham, together with Lt-Col Eeben Barlow; a former Apartheid-era member of the South African Defence Force and former Scots Guard Simon Mann became business partners in Executive Outcomes, a private military company formed by Barlow in 1989.
Executive Outcome senior personnel were composed primarily of former members of the South African Defence Force and later fought against UNITA to retake their operations.
But Executive Operations is also infamous for its involvement with another British mercenary company, Sandline International, that broke a UN arms embargo in Sierra Leone, allegedly with British government approval. Sandline's CEO was the retired Lt-Col Tim Spicer OBE.
In 1995, the government of Sierra Leone engaged Executive Outcomes to train the Sierra Leone army and support it in defeating RUF rebels. Sandline International was formed in late 1996 with Buckingham as one of the principals.
In 1997, when a military coup ousted president Ahmad Tejan Kabbah of Sierra Leone, millionaire Indian financier Rakesh Saxena contracted Sandline to organise a counter-coup in exchange for diamond exploration permits. The Heritage prospectus says Sandline had the tacit approval of the British government as well as support from a Royal Navy frigate. Saxena is implicated in the fraud and collapse of the Bangkok Bank of Commerce in 1996 and is today trying avoid extradition to Thailand from Canada to face embezzlement charges.
According to the British Parliament's Report of the Sierra Leone Arms Investigation, Saxena would raise the money so that Sandline could hire soldiers and buy equipment.
Sandline was also engaged by the government of Papua New Guinea to suppress the Bougainville Revolutionary Army (BRA), which was seeking independence from the PNG.
At the Papua New Guinea Commission of Enquiry into Sandline's contract with the PNG government, the enquiry concluded that the 'controllers' of Sandline were obviously Buckingham and at least to some extent Spicer. It said Executive Outcomes was a significant sub-contractor of Sandline and supplied a significant number of the personnel brought to PNG by Sandline.
Sandline International became dormant and the company was dissolved in 2004, while Executive Outcomes was dissolved in 1999.
Besides Sandline and Executive Outcomes, Tony Buckingham is also the principal shareholder in Indigo Sky Gem, a mining company which bought the exclusive prospecting rights for diamonds on the Neu Schwaben farm from the Namibian government. It is accused of using 'strong-arm' tactics to evict some 1,000 small-time miners who had been digging for the gems for years.
Such is the risk, then, documented inside Heritage's prospectus: "Adverse media about the CEO's past associations could materially adversely affect the group's reputation and the market price of the ordinary shares."
And even though the prospectus neatly transcribes Buckingham's mercenary past into struggles aimed at restoring internationally recognised governments and combating rebels, or that Heritage’s efforts are firmly focused in oil and gas exploration, the perfect tonic to Buckingham's reputation is JP Morgan Cazenove's research note: "Heritage ought to be seen as a high-risk, high-impact play with a tolerance for share-price volatility."
3: Taarifa ya 3
Heritage Oil Limited has received the approval by the Government of Tanzania for farm-ins to four exploration licences in Tanzania and the transfer of operatorship to Heritage.
Heritage previously announced the farm-ins to the Kimbiji and Latham licences on April 11, 2008 and the Kisangire and Lukuliro licences on April 21, 2008.
Heritage has commenced acquisition of 2D seismic, initially in the onshore part of the Kimbiji licence area, after which seismic operations will be conducted in the Kisangire licence area. Heritage plans to drill its first well in Tanzania in the second half of 2009.
Kisangire and Lukuliro Licence Areas
The Kisangire and Lukuliro licence areas cover an area of 7,280 square kilometres and 8,828 square kilometres respectively, onshore Tanzania. The PSA was originally awarded to Dominion Petroleum Limited ("Dominion") in May 2005 with an exploration period of four years followed by one extension of four years, a further extension of three years and the right to a development licence with a term of 25 years.
Under the terms of the farm-in agreement with Dominion, Heritage initially has the right to earn a working interest of 55% in the Kisangire and Lukuliro licences. In order to earn the working interests, Heritage will fund all costs to acquire a minimum of 150 kilometres of 2D seismic data and drill the first commitment well. Heritage also has an option to earn an additional 15% working interest, thereby increasing its participating interest to 70%, by funding 87.5% of the costs of a second well.
Latham and Kimbiji Licence Areas
The Latham and Kimbiji licences, covering 5,056 square kilometres and 4,298 square kilometres respectively, encompass onshore (1,881 square kilometres), near shore (2,981 square kilometres), and deep water (4,491 square kilometres) areas. The PSA was awarded by way of a competitive tender process to Petrodel Resources Ltd ("Petrodel") by the Tanzanian Government in September 2006, having an exploration period of four years, followed by extensions of four years and three years respectively, with the right to a development licence with a term of 25 years.
Under the terms of the farm-in agreement with Petrodel, Heritage has the right to earn a 70% working interest in the Kimbiji licence area, and a 29.9% working interest in the Latham licence area in return for funding all seismic costs required for the initial exploration period on both licences and the drilling of two exploration wells within the Kimbiji licence area. Heritage will act initially as contract operator, being responsible for all technical and operational aspects of the work programmes and will be appointed operator upon drilling the second exploration well in the Kimbiji licence.
The Kimbiji and Kisangire licence areas are close to the Mkuranga-1 gas discovery, which was drilled in 2007 and reportedly flowed gas at a rate of 20 mmcf/d. The large Songo Songo producing gas field is located approximately 60 kilometres to the south east of the Kimbiji licence area.
Historic seismic data, combined with encouraging hydrocarbon shows in wells drilled in the region and oil seeps at Wingayongo in the Kisangire licence area, indicate the presence of a working hydrocarbon system that is generating both oil and gas.
Tony Buckingham, Chief Executive Officer, commented:
"We are very pleased to have received Government approval and completed the farm-in agreements in Tanzania. These prospective licences form part of the Company's strategy of exploring new regions with considerable hydrocarbon potential. Heritage's activity in Tanzania has already commenced with the acquisition of seismic, which will be followed by a drilling programme next year."
Well:
Now you need to get the report!