Tax spat claims send Heritage stock tumbling

City A.M. Reporter
SHARES in Heritage Oil endured a bumpy journey lower yesterday after conflicting reports about the status of its tax dispute in Uganda.

Heritage Oil released a statement yesterday afternoon dismissing Ugandan claims of victory in the legal fight between the country and the company as “a misleading representation of a detailed decision” made in a London arbitration hearing.

The oil company, which is resisting paying hundreds of millions of dollars of tax claimed by Uganda on the sale of exploration acreage to another oil company, also said comments made earlier in the day by a Ugandan official were “breaches of the requirement of confidentiality imposed upon both parties to the proceedings”. Arbitration proceedings are continuing, it said.

Its shares closed down 7.1 per cent.