Independent oil group Heritage has seen its half-year profits soar after buying into Nigeria’s oil industry.
The US-based firm saw revenues rise by 5700% to $237.8m, with an after-tax profit of $57.2million for the first half of the year – compared to a $50million loss last year.
Heritage bought into Shell’s former OML 30 licence in Nigeria last year in a $850million deal, as part of an expansion into the country.
The Niger Delta gamble has now paid off, producing a peak of 44,000 barrels per day this month.
“We have started the second half of the year remaining resolutely focused on our existing operations in Nigeria to ensure we extract maximum value from our asset,” said chief executive Tony Buckingham.
“We expect to see further significant production gains during the remainder of the year from the operational, engineering and comprehensive community programmes undertaken so far.
“Considerable cash flow can be generated from our OML 30 interests to fund our exploration portfolio in the short term and longer term provide surplus funds for a sustainable dividend stream to our investors.”
On the back of the success in Nigeria, the company has farmed into two licences in Papua New Guinea