Heritage CFO says looking to make material acquisition

LONDON Nov 25 (Reuters) - British explorer Heritage Oil (HOIL.L)'s CFO said the company is looking to make a material acquisition and can draw on extra funds in addition to proceeds made from the sale of assets in Uganda.

"Any transaction has to be significant, has to be material. We're not looking at very small, marginal transactions. We have access to other finance as well," Chief Financial Officer Paul Atherton told reporters on the sidelines of a conference in London.

Heritage has looked at over 130 opportunities so far this year, said Atherton, adding that he could not give any guidance as to when a deal might take place.

"There are certainly more asset opportunities than corporate opportunities and we see greater value typically from an asset opportunity," he said.

Heritage is focused on deals in Africa and the Middle East, he said, adding that the company was also considering buying development assets, which would represent a shift away from its current focus on exploration.

The company said earlier in November it had cash of $604 million, excluding $404 million which has been set aside in relation to a tax dispute with Uganda.

The Ugandan government says it is owed tax from Heritage's disposal of assets to former exploration partner Tullow Oil (TLW.L). [ID:nLDE67P17F]

Atherton said on Thursday there had been no change in the dispute situation, but that he did not think it would impact the company's ability to make acquisitions in other countries.

"We've been very, very clear that we'll pay any debt that's legally and lawfully imposed," he said.

Heritage, which has switched its focus to the Kurdistan region of Iraq, said in July it had received legal advice that indicates no tax is due on the deal with Tullow.

Heritage has paid a portion of the tax Uganda says is due, put the balance aside and requested for arbitration to take place in London to settle the quarrel.

The dispute is yet to go to arbitration, Atherton confirmed on Thursday.

(Reporting by Sarah Young, Editing by Rosalba O'Brien)