Heritage Oil Plc is an exploration oil and gas company. The company focuses on 3 regions; Africa, the Middle East and Russia. Russia was the only producing region for the company with 329 barrel of oil equivalent per day (boepd) in 2009 and 563 in 2010. Heritage likes to focus on regions which are overlooked and unexplored to find the next big reservoir. Given that the company is mainly an exploration company, it faces unpredictable cash flows as well as serious political risk from its exploration activities. Additionally, the company is highly dependent on external financing to continue its operations as well as being highly sensitive to oil prices to value its exploration and development plays that it plans to sell. The company is optimistic about its Kurdistan Miran Field which is estimated at having a large reservoir of approximately 3,4bn barrels of oil. The company recently successfully sold its large discovery field in Uganda for USD 1,35bn which should provide financing for its next round of exploration and development activity in Africa and the Middle East regions.