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The 49-year-old picked up the award for his website, prufospolicedatabase.co.uk, which he launched in 2002. The database includes 330 cases and the witness statements of more than 750 police officers.
"Winning the award was a total surprise, I didn't know I was going to win until my name was read out," The Telegraph quoted Heseltine, as saying.
"It's also a terrific boost for my database as it puts me on an international platform and I have already been offered chances to give lectures in Brazil and Denmark," he added.
It caters for serving and retired officers who have been involved in British UFO police sightings.