Shares of Heritage Oil Plc surged more than 7% on July 14 on market rumors of a potential bid interest from Royal Dutch Shell Plc, traders said. Both Royal Dutch Shell and Heritage refused to comment on the market talk. A trader said the talk was for a potential bid of 700 pence per share.

Heritage Oil Corp. announced that, in accordance with the option outlined in the Production Sharing Contract (PSC) in the Kurdistan Region of Iraq, the Kurdistan Regional Government (KRG) has nominated Genel Energy International Limited (Genel) as the Third Party Participant in the Miran Licence. This right of appointing an additional party to the PSC is included as standard in contracts in the Kurdistan Region of Iraq. Genel has been nominated as the Third Party shareholder into the Miran Licence, under the terms of the PSC.· Heritage remains the operator with a 75% working interest. Heritage will receive from Genel the pro-rata share of 25% of all past work programme expenditures and fund its share of all future costs. A third party has already commissioned three 20,000 barrels per day units of mini-refineries, therefore, the KRG no longer requires Heritage to build a mini-refinery in the Kurdistan Region, and in exchange for discharge from the obligation Heritage will pay the KRG $35 million from future production revenue.