Q&A with Tony Buckingham, CEO
What, for you, were the highlights of 2009?
2009 was a remarkable year for Heritage and marked another milestone in our development. Operational success continued in Uganda where we concluded our successful drilling campaigns in both blocks and in Kurdistan where we announced the significant Miran West-1 discovery. From a corporate perspective, we are in the process of disposing of our Ugandan interests and we raised $217 million through a successful offering of Ordinary Shares last summer. The proposed sale of our Ugandan interests is a demonstration of our ability to seek an early opportunity, based on our strong technical capability and network of relationships, and to successfully operate, explore and monetise. Delivering on our promises in this respect has been a wonderful achievement.
Do you have a message for shareholders?
The Company has an excellent track record built over many years, one that we continue to live up to. Since we listed in London in March 2008, we have enjoyed incredible success. We have delivered on our promise to generate shareholder value, expand analyst coverage and to increase liquidity and we are firm in the knowledge that we have the right people and the right assets to allow us to continue to deliver high impact results for our shareholders.
How does the Company engage with shareholders?
The Chairman, with input from the Senior Independent Director, is responsible for ensuring effective communication of shareholders’ views to the Board as a whole and will update the Board accordingly. We employ an investor relations specialist and an investor relations programme is in place for Executive Directors and senior management to meet with institutional investors in European and North American cities. The website is updated continually to keep investors informed of our activities.
What distinguishes Heritage from its peers?
The Company has many competitive strengths including:
> a strong balance sheet;
> a proven management team;
> strong and established technical expertise;
> a geographically diversified portfolio of high impact exploration plays; and
> well-established connections in all areas in which we operate.
What is the Company’s approach to CSR and how has this developed?
Heritage has always recognised that our licence to operate is closely linked to our adoption of CSR concepts. A key element of this is our approach to the conduct of our business matters. It is an important management priority to ensure that our relationships in the countries in which we operate are conducted in a transparent and responsible manner. Our systems in this area are reviewed regularly and will be an important responsibility of our new CSR Committee.
We work closely with a variety of local stakeholders in the areas where we operate. We aim to ensure that the economic value generated by our operations is applied to address important aspects of local need. We have worked closely with the local authorities in Uganda to develop important health, educational and economic infrastructure projects. For example, we have built a school and a potable water project for the local villagers. We aim to apply our experience in Uganda to the other parts of the world in which the Company operates. This approach is already being reflected in a number of our activities in Kurdistan.
How would you describe the culture at Heritage?
We have an excellent track record of attracting and retaining talented personnel. All staff are encouraged to participate in the development of the Company. Heritage is an ambitious company that is moving fast. We attract individuals, therefore, with the same ambitions who want to seek out high impact, value creating opportunities.
What are the key components of your strategy?
We aim to continue to generate growth in shareholder value by focusing on high impact international plays with the potential to discover significant hydrocarbon reserves. We look to acquire and invest in exploration and early development opportunities throughout the world, with a particular emphasis on our core areas where we have a strong technical understanding. By entering into regions early we seek to obtain a large equity interest and operatorship.
What does 2010 hold for Heritage?
2010 will continue to be a very interesting year for Heritage as we have a diversified drilling programme and the financial flexibility to accelerate programme execution in several of our core areas. In the near-term the main priorities for the Group are to continue to drive our current portfolio forward with drilling in Kurdistan, Malta and Pakistan. 2010 will be full of many exciting opportunities for our Company.