One Team...One Journey

At the outset, we knew that 2023 would be a very critical year for Heritage, and that we needed to be focused on the delivery of the activity sets defined in our performance plan.

It has indeed been a busy start to the year, not only for the operations but for all of us who support this delivery. We are pursuing a ten-well drilling programme onshore and a five-well drilling programme offshore; we intend to have as many as 21 drilling and workover rigs operating at the same time. We will also address our plant and well integrity issues, to which a major part of our project spend will be allocated this year.

There has also been emerging market risk. We certainly did not expect the oil market to be as robust as 2022, and the oil price has fallen significantly from the 2022 highs. We are pricetakers in the oil market and with the uncertainty of the global geopolitical situation, we must be prepared for fluctuations in the oil and gas industry. The direct implications these conditions have on our operation strategies, forecasts, and profitability cannot be denied. We are, however, taking mitigating actions in the areas we control, to make our operations more efficient and reduce our lifting costs, while focusing on safe and efficient performance.

We also recognise that we have an obligation to contribute to society beyond generating profits, and to continue investing in programmes that are sustainable, impactful and responsive to local needs and aspirations. We know that the Company’s relationships and engagement with its stakeholders are critical to the success and sustainability of both the communities in which we operate and the Company itself.

We therefore continue to develop and support empowering initiatives, social enterprises, and sustainable programmes within our operating communities in order to build trust and foster a sense of ownership and participation.

In January, we launched three of our social sustainability programmes at the Palo Seco Government Primary School:

• The Here We Grow Agri-preneur Training & Capacity Development initiative

• The Heritage Outreach to Maximise Environmental Excellence (HOMEE) programme

• The Heritage Information Technology Training (HITT) programme

It is anticipated that these three programmes will support small businesses and entrepreneurial ventures, promote environmental awareness, education and advocacy, and build information technology expertise. We expect that they will also impact many in the community, including primary and secondary school students.

Our Day of Volunteerism was a great success, and I am heartened that the spirit of volunteerism lives strongly in our employees. Thank you to everyone for coming out and “getting your hands dirty” to support our neighbouring communities of Penal, Santa Flora, Palo Seco and Point Fortin. The results of your efforts have already begun to grow and bear fruit — literally — with reports of harvests at a few locations.

Our performance directly impacts our nation’s economy and the work we do towards improving the lives of those in our neighbouring communities. We need to deliver on our objectives. We are a nimble and innovative organisation, and I believe that we can adapt to the current context and succeed.

I am reminded of the tumultuous times we found ourselves in back in 2020, when no one could predict what the future would be like or how we would survive. We pivoted, we worked hard and finished strong — and we can do it again, as One Team on One Journey.

Much respect,

Arlene Chow CEO