August 6, 2008 / 9:09 AM / in 10 years

Heritage falls as Uganda well disappoints

LONDON (Reuters) - Shares in Africa, Middle East and Russia-focused oil and gas firm Heritage Oil HOIL.L slumped 17 percent on Tuesday to a record low after tests revealed that no hydrocarbons were present in its Kingfisher-2 well in Uganda.

Shares of London and Canada-listed Heritage HOC.TO, which went public in March last year, dropped 16 percent to 215 pence at 0840 GMT, earlier dropping to a 211 pence-intraday low.

“Although no hydrocarbons were present in the basal sands at this location, it is considered that these could still be an important reservoir target for other prospects,” Heritage said.

In the same announcement, Heritage also said Tullow Oil’s (TLW.L) discovery of oil at its Kasamene-1 well in Uganda “significantly” lowers the exploration risk of its own prospects about 2.5 km away.

Reporting by Hsu Chuang Khoo; Editing by Paul Bolding

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