Heritage Oil Awarded Production Sharing Contract in Malta



    /THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
    SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

    CALGARY, Dec. 17 /CNW/ - Heritage Oil Corporation (TSX: HOC) ("Heritage"
or "the Company") today is pleased to announce that it has executed a
Production Sharing Contract with the Maltese Government for Areas 2 and 7 in
the southeastern offshore region of Malta. Under the terms of the agreement,
Heritage Oil International Malta Limited, a wholly owned subsidiary of
Heritage, will serve as operator with a 100%-interest.
    Areas 2 and 7 cover approximately 9,190 square kilometres and
8,778 square kilometres respectively. Heritage has reviewed the existing
extensive seismic database, consisting of approximately 3,500 km of high
quality data acquired after 2000, and identified a variety of prospects in
Lower Eocene and Cretaceous carbonates, that are recognised to be major
hydrocarbon producing plays in the central part of the Mediterranean. The
licenses are under-explored, having only one well drilled in 1980 to a depth
of 1,225 metres, which failed to reach the target horizons that are located at
depths of 1,500 to 4,000 metres, and in water depths of only 200 to
400 metres.
    Heritage will commence geological and geophysical studies immediately,
and establish a local office in Malta. The total minimum contractual work
programme consists of the acquisition of an additional 1,000 km of seismic
data and the drilling of one exploration well, corresponding to a financial
commitment of US$22 million, distributed over the first three-year exploration
phase, which can be extended for a further three years thereafter.

    Mr. Tony Buckingham, CEO, stated:

    "We are delighted to be awarded this Petroleum Sharing Contract in Malta.
We consider it to be in one of the most prospective regions in the
Mediterranean as the exploration plays we have identified are analogues of
fields in neighbouring offshore Libya. We believe this license has the
potential to become a world-class asset."

    
    Notes to Editors:

    -   Heritage is an international oil and gas corporation with a
        diversified portfolio of properties, including producing properties
        in the Sultanate of Oman and Russia and exploration projects in the
        Republic of Uganda, the Democratic Republic of Congo, the Kurdistan
        Region of Iraq and Republic of Mali.

    -   Heritage's management team has a proven track-record of finding new
        large oil discoveries, including the hydrocarbon system in Lake
        Albert, Uganda and the M'Boundi field in the Republic of Congo.

    -   A location map of Areas 2 and 7 is available on Heritage's website at
        www.heritageoilcorp.com.
    

    If you would prefer to receive press releases via email contact Sarah
Gingerich (sarah@chfir.com) and specify "Heritage press releases" in the
subject line.

    FORWARD-LOOKING STATEMENTS:

    Except for statements of historical fact, all statements in this news
release - including, without limitation, statements regarding production
estimates and future plans and objectives of Heritage - are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate; actual results and
future events could differ materially from those anticipated in such
statements. Factors that could cause actual results to differ materially from
anticipated results include risks and uncertainties such as: risks relating to
estimates of reserves and recoveries; production and operating cost
assumptions; development risks and costs; the risk of commodity price
fluctuations; political and regulatory risks; and other risks and
uncertainties as disclosed under the heading "Risk Factors" in its AIF and
elsewhere in Heritage documents filed from time-to-time with the Toronto Stock
Exchange and other regulatory authorities. Further, any forward-looking
statement is made only as of a certain date and the Company undertakes no
obligation to update any forward-looking statement or statements to reflect
events or circumstances after the date on which such statement is made or
reflect the occurrence of unanticipated events, except as may be required by
applicable securities laws. New factors emerge from time to time, and it is
not possible for management of the Company to predict all of these factors and
to assess in advance the impact of each such factor on the Company's business
or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking
statement.

    %SEDAR: 00010129E




For further information:

For further information: Investors Relations Contacts: CHF Investor
Relations, Cathy Hume, Tel (416) 868-1079 x231, Email cathy@chfir.com;
Heritage Oil Corporation, Tony Buckingham or Paul Atherton, Tel +41 91 973
1800, +44 870 011 5555, (403) 234-9974, Email info@heritageoilcorp.com

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HERITAGE OIL CORPORATION

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