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SHOULD INVESTORS WELCOME THE HERITAGE ENI DEAL?

<strong>PETER HITCHENS </strong>PANMURE GORDON<br /><br />&ldquo;The deal will detract from the short term appeal of the company as this takes away much of the near term exploration upside that shareholders could have benefited from over the next six months. That being said, the management should be aware of this and will seek to divert some of its cash.&rdquo;<br /><br /><strong>MALCOLM GRAHAM-WOOD </strong>HANSONWESTHOUSE<br /><br />&ldquo;We believe that this is positive news for the company, and Heritage now represents good value. We like this deal and believe it is more along the lines of what Heritage should have been pursuing from the start, rather than the ill-fated Genel acquisition.&rdquo;<br /><br /><br /><strong>WERNER RIDING </strong>AMBRIAN<br />&ldquo;Having taken a cautious stance on Heritage in August this year, we suggest the decision by Heritage management to step back from the Genel merger is a good one, as it means it now avoids the likely ongoing impasse surrounding contractor payment for produced and exported oil.&rdquo;