Monday, June 12, 2006 2:48:12 PM
TIMELINE of PR's
12.07.05
Global Energy Development PLC Mobilizes Rig for First Exploratory Well on Rio Verde Contract in Colombia
11.29.05
Harken Energy Subsidiary Enters into Third Coalbed Methane Exploration and Development Agreement
11.23.05
Harken Energy's Subsidiary, Global Energy Development PLC, Receives New Contract Approval in Colombia
11.09.05
Harken Energy Reports Third Quarter 2005 Net Income of $32.8 Million
11.01.05
Global Energy Development PLC Raises $12.5 Million through Issuance of Convertible Notes
10.27.05
Global Energy Development PLC - Los Hatos #1 Positive Test Results
9.22.05
Harken Energy Corporation Announces 10 Million Share Stock Repurchase Plan
9.21.05
Harken Energy Gives Notice of Conversion of Convertible Notes
9.16.05
Harken Energy Raises $6.3 Million from Lyford Warrant Exercise
9.12.05
Harken Energy Raises $14.1 Million Through Sale of Global Energy Shares
9.08.05
Harken Energy Provides Assessment of Impact from Hurricane Katrina
9.06.05
Harken Energy Completes Two Million Share Buyback of Common Stock
8.17.05
Global Energy Mobilizes Rig to First Exploratory Well on Los Hatos Contract in Colombia
8.16.05
Harken Energy Provides Domestic Operations Update
8.09.05
Harken Energy Reports Net Income of $15.7 Million, 44% Increase in Revenue and 54% Increase in Operating Margin for the Second Quarter of 2005
6.28.05
Harken Energy Completes Two Million Share Buyback of Common Stock and Authorizes an Additional Two Million Share Repurchase Plan
6.27.05
Harken Energy Raises Additional $1.2 Million Through Sale of Global Energy Shares
6.23.05
Harken Energy Raises Additional $3.1 Million Through Sale of Global Energy Sales
6.20.05
Harken Energy Raises $ 2.8 Million Through Sale of Global Energy Shares to Institutional Investors
6.10.05
Harken Energy Raises $4.9 Million Through Sale of Global Energy Shares to an Institutional Investor
6.3.05
Harken Energy Exercises Global Energy Development Warrants
5.31.05
Harken Energy Subsidiary Signs New Technical Evaluation Agreement for 2.1 Million Acre Valle Lunar area in Colombia
5.23.05
Harken Energy Commences Seismic Data Study for Rio Verde Contract in Colombia
5.11.05
Harken Energy Corporation Announces Stock Repurchase Plan
5.10.05
Harken Energy Reports First Quarter 2005 Results
4.29.05
Harken Energy Raises $3.8 Million Through Sale of Global Energy Shares to an Institutional Investor
4.21.05
Harken Energy Announces New Crude Oil Sales Contract Offering Improved Terms for Colombia
4.14.05
Harken Energy Raises $8.4 Million Through Sale of Global Energy Shares to an Institutional Investor
4.11.05
Harken Energy Subsidiary Signs Exploration and Exploitation Contract for the Block 95 Area in Peru
4.5.05
Harken Energy Corporation Provides Domestic Operations Update
4.5.05
Harken Energy Corporation Files 10-K/A - Amended Annual Report
3.29.05
Harken Energy Acquires Second Coalbed Methane Prospect
3.23.05
Harken Energy Acquires 400,000 Acre Coalbed Methane Prospect Located in Indiana
3.18.05
Harken Energy Files 8-K Reporting Non-Reliance on 2004 Financial Statements
3.16.05
Harken Reports 45% Increase in Operating Margin in 2004
3.14.05
Harken Energy Announces the Successful Workover of Canacabare #1 in the Anteojos Field in Colombia
2.17.05
Harken Energy Announces $34 Million Capital Expenditure Budget for 2005
1.27.05
Harken Energy Announces Successful Re-completion, Commencement of Production from Macarenas #1 on Rio Verde Contract in Colombia
1.10.05
Harken Energy Completes Two Million Share Buyback of Common Stock
Global Energy Development PLC Mobilizes Rig for First Exploratory Well on Rio Verde Contract in Colombia
Dallas, Texas - December 7, 2005 - Harken Energy Corporation (AMEX: HEC), announced today that Global Energy Development PLC, ("Global") has commenced rig mobilization to the Tilodiran #2 exploratory well within its exclusive Rio Verde Exploration and Production Concession Contract (the "Contract") in Colombia. Harken Energy holds 11,892,922 ordinary shares in Global, representing approximately 34% of Global's issued share capital.
The Contract, which Global owns 100% of and is subject only to an initial 10.5% royalty, covers approximately 75,000 acres in the central Llanos region and currently contains two producing wells, Tilodiran #1 and Macarenas #1, which were successfully recompleted and brought onto production in late 2004 and early 2005 respectively. Cumulative gross production from these two wells has since been over 87,000 barrels of oil.
The rig mobilization to Tilodiran #2 at this time represents an acceleration of the work program required under the terms of the Contract which specifies that Global must drill the first exploratory well during phase two which commences in May 2006.
Global has acquired and processed 56 kilometers of new 2D seismic within the Contract area during 2005 and reprocessed 300 kilometers of existing seismic in order to select optimum drilling locations. Tilodiran #2 is located approximately 2,200 feet northeast from and in a geologically favorable position updip to Tilodiran #1. Global expects to spud Tilodiran #2 in mid to late December 2005.
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries and shareholdings. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements such as "believes", "anticipates", "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q, as amended, for the period ended September 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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Harken Energy Subsidiary Enters into Third Coalbed Methane Exploration and Development Agreement
Dallas, Texas - November 29, 2005 - Harken Energy Corporation's (AMEX: HEC) wholly owned subsidiary, Gulf Energy Management Company ("GEM"), has entered into a new agreement for the joint exploration and development of coalbed methane (CBM) acreage located in Ohio.
The agreement between GEM and Ohio Triangle, L.P. was effective on November 21, 2005, and calls for GEM to purchase a 65% non-operating working interest in CBM acreage located in Ohio. GEM's current plans are to drill three core holes commencing by the end of the first quarter 2006 in Phase I. Based on favorable results in Phase I, GEM has the option to purchase approximately 20,000 acres of coal rights and initiate a Pilot Program in Phase II. Following a review of Phase II results, GEM has the option to begin a development program during which GEM would provide 100% funding up to total expenditures of $7.5 million.
"This new CBM acreage in Ohio is an excellent strategic fit for our growing portfolio of CBM acreage and is consistent with our goal of building stable production and adding reserves to our asset base," said Jim Denny, Chief Executive Officer and President of Gulf Energy Management Company.
Updating the status of GEM's existing CBM agreements, GEM and its partner, Ute Energy, completed drilling of three core holes on its Ohio CBM prospect area and four core holes on its Indiana CBM prospect area during the third and fourth quarter of 2005. Based on the results, GEM has elected to fund Phase II of the CBM agreement in Indiana and plans to drill its first pilot wells during the first quarter of 2006. Core samples from the Ohio CBM prospect are in the process of being analyzed. Depending on final results, GEM may elect to schedule drilling of pilot wells on its Ohio CBM prospect area during 2006.
"With the initial results of the core samples from our Indiana prospect now in, we believe the gas content and economics are sufficient to begin moving ahead with our first group of five pilot wells in Indiana," Denny commented. "Once these wells are in place and dewatered, we will have our first look at the production and the upside potential of this prospect."
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements such as "believes", "anticipates", "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q, as amended, for the period ended September 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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Harken Energy's Subsidiary, Global Energy Development PLC, Receives New Contract Approval in Colombia
369,000-acre Luna Llena Contract within Valle Lunar acreage
Dallas, Texas - November 23, 2005 - Harken Energy Corporation (AMEX: HEC), announced today that Global Energy Development PLC (‘Global') has received approval for a new exclusive exploration and production concession contract with the National Hydrocarbons Agency of the Republic of Colombia following electing to convert a portion of its Valle Lunar acreage held under a Technical Evaluation Agreement ("TEA"). Harken Energy currently holds approximately 34% of Global's issued share capital.
The new Luna Llena Contract, one of six contracts Global now holds in Colombia, covers 369,000 acres within the approximate 2.1 million acre Valle Lunar TEA, which is located in the established Llanos Basin of eastern Colombia. The Valle Lunar TEA, signed on May 2005, grants Global the exclusive option to convert any of the acreage into a contract or contracts prior to or at the TEA's conclusion in October 2006.
"The early conversion of the Luna Llena Contract reflects Global's desire to accelerate its work program on this selected area due to management's belief that the opportunity to develop substantial medium heavy oil reserve potential is significant," said Stephen Voss, Global's Managing Director.
"Two international oil companies drilled a number of shallow wells in the 1980s within Luna Llena to a depth of approximately 3,000 feet which delineated what is now known to be the El Miedo field. Oil production tests were successful but the opportunity was deemed non-commercial at the time due to low oil prices," said Voss.
Since Global signed the Valle Lunar TEA, the company has conducted Landsat analysis of the acreage, which yielded a considerable amount of surface data, particularly within the Luna Llena area, that can be utilized in subsurface interpretation. In addition, the Luna Llena acreage contains the identified El Miedo field. The El Miedo field has substantial well tests and subsurface geologic control that was acquired by two international oil companies in the 1980s from an extensive drilling effort conducted by these oil companies. Oil production tests were successful at that time. Global has already completed engineering and geologic studies on the El Miedo field.
Global will own 100% of the Luna Llena Contract subject only to an initial 8% royalty, with the size of the royalty to be determined by future production levels. The Contract duration is 30 years divided into an initial six-year exploration phase and a 24 year exploitation and production phase. Under the terms of the Luna Llena Contract, Global must, within 18 months, acquire 165 kilometers of 2D seismic, reprocess 500 kilometers of existing seismic, re-enter and test one existing well and drill two exploratory wells which cover the total geologic column. Global can then elect, if it so wishes, to proceed to phase two which also covers 18 months and requires re-entering another existing well or drilling another exploratory well. Phases three to five, all optional, are each 12 months and require the drilling of an exploratory well in each phase.
Global will continue to hold the remaining Valle Lunar TEA acreage and conduct further geologic analysis and geophysical tests over the next several months, fulfilling all the associated work obligations, with a goal of potentially contracting more of the acreage. Global is finalizing its plans for new drilling in the El Miedo field in the second half of 2006.
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries and shareholdings. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements such as "believes", "anticipates", "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q for the period ended September 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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Harken Energy Reports Third Quarter 2005 Net Income of $32.8 Million
Third Quarter Revenues Increase 39%, Operating Margin Increases 21%
Dallas - Texas - November 9, 2005 - Harken Energy Corporation (AMEX: HEC) is pleased to report Net Income of $32.8 million, or $0.15 per share, for its third quarter ended September 30, 2005. Total revenues in the third quarter of 2005 increased to $11.6 million, an increase of 39% over the third quarter of 2004, due to a continued increase in international production and higher oil and gas prices. Non-GAAP Operating Margin increased to $5.5 million in the third quarter of 2005, representing 21% growth over the same period in the prior year.
Global Stock Sales, Global Warrant Liability Extinguished, Conversion of Convertible Notes
During the three months ended September 30, 2005, Harken sold a portion of its equity interest in Global Energy Development PLC (Global). With the sales of these shares (along with the exercise of Global warrants and share options), Harken's equity interest in Global was approximately 34% at September 30, 2005. Harken recognized gains totaling $11.9 million equal to the amount by which the total sale proceeds exceeded the net book value of its Global shares sold. Harken does not anticipate recognizing similar gains in the future.
The global warrant liability on Harken's balance sheet was extinguished with the exercise of all outstanding Global Minority Owner warrants and the exercise of the Global Warrants held by Lyford Investments Enterprises. Harken recognized a gain of $28 million representing the difference between the cash proceeds received plus the fair value of the Global Warrant liability extinguished and the net book value of Harken's shares in Global sold as of the date of exercise. Harken does not anticipate recognizing similar gains in the future.
Share-based liability related to Global's stock option plan increased due primarily to the increase in Global's common share price along with the continued vesting of Global's outstanding options. During the third quarter of 2005, Global recorded share-based compensation expense of approximately $6.9 million associated with the increased common share price and vesting.
Holders of $3.325 million of 5% Convertible Notes voluntarily converted the debt into approximately 6.5 million shares of Harken common stock, during the three months ended September 30, 2005. The conversion had no effect on profit and loss.
Redemption of Preferred Shares
Harken redeemed all of the outstanding 50,000 shares of Series J Preferred in exchange for $5.0 million in cash, and recorded a non-cash accounting loss to preferred holders of approximately $225,000 related to this transaction.
The Company redeemed 11,825 shares of Series G1 Preferred in exchange for $65,000 in cash. Only 1,600 shares of Series G1 Preferred remain outstanding. Harken recorded a non-cash accounting gain from preferred holders of approximately $489,000.
Harken redeemed 1,000 shares of Series G2 Preferred in exchange for $24,000 in cash. Only 1,000 shares of Series G2 Preferred remain outstanding. A small non-cash accounting gain from preferred holders of approximately $53,000 was recorded.
The Company redeemed 67,715 shares of Series G4 Preferred in exchange for $3.7 million in cash. The Series G4 Preferred is no longer outstanding. Harken recorded a non-cash accounting loss from preferred holders of approximately $204,000.
Operating Summary
Gulf Energy Management Company (GEM)
During the quarter ended September 30, 2005, GEM's Louisiana operations were affected by one tropical storm and two hurricanes that interrupted both production and certain drilling operations. As much as 75% of GEM's domestic production was shut in during September and approximately 40% of its pre-storm production level remains curtailed. GEM continues to inspect and repair damage to its eastern Gulf operations that remain shut-in which include Main Pass, Point a la Hache and non-operated properties at Branville Bay, Backridge, Port Arthur (TX) and Abbeyville. Restoration of remaining curtailed production is also dependent on resumption of downstream infrastructure and the availability of service and equipment contractors necessary for over-water transportation and repairs. As of September 30, 2005, GEM properties were producing at approximately 4.4 million cubic feet equivalent per day.
During the quarter ended September 30, 2005, GEM's oil and gas revenues decreased 11% to approximately $4.1 million compared to $4.7 million for the prior year period primarily due to the decrease in sales and production volumes in the third quarter of 2005 as compared to the prior year period. The company reported accelerated declines in certain field productivity in the Raymondville field as well as lost production due to hurricane Katrina and Rita. The decrease in sales volume was partially mitigated by an increase in average oil and gas commodity prices received, as compared to the prior year third quarter.
GEM's oil and gas operating expense increased 25% to approximately $1.5 million during the third quarter of 2005 compared to approximately $1.2 million during the third quarter 2004 primarily due to property insurance deductibles and other related items for the repair and restoration of damages from Hurricanes Katrina and Rita.
Regarding GEM's Indiana Posey Coalbed Methane Prospect, in September 2005, after the submission of a Phase I core evaluation report, GEM has elected to proceed and fund pilot well drilling under Phase II of the agreement. On GEM's Ohio Cumberland Coalbed Methane Prospect, the coring phase is continuing and expected to be completed in the fourth quarter of 2005. In addition, GEM is actively evaluating other strategic coalbed methane opportunities in pursuit of long-lived reserve prospects to compliment our current oil and gas portfolio.
Global Energy Development PLC (Global)
During the third quarter 2005 as compared to the third quarter 2004, Global reported increased oil revenues, operating expenses and oil volumes. Global's oil revenues increased to approximately $6.6 million during third quarter 2005 as compared to $3.5 million in the third quarter 2004. Oil sales volumes increased 34% to approximately 134,000 net barrels (after royalties and Cajaro's working interest allocation) during the three months ended September 30, 2005 from approximately 100,000 net barrels during the third quarter of 2004. Increased oil sales volumes were a result of improved well performance and successful workovers. Global's average oil commodity prices increased 39% to $49.33 during the third quarter 2005 compared to $35.48 during the third quarter 2004.
Global's operating expenses have increased 135% from approximately $671,000 for third quarter 2004 to approximately $1.6 million for third quarter 2005, primarily due to equipment rentals and diesel fuel costs and workovers due to increased production volumes from certain wells in the second quarter of 2005. These wells include the Tilodiran, the Macarenas, and the Estero #4 and Estero #5 wells. Diesel fuel costs have risen with the increase in price of crude oil.
International Business Associates (IBA)
IBA incurred net trading gains of approximately $536,000 for the quarter ended September 30, 2005. IBA's net loss for the same period was approximately $116,000. During the period ended September 30, 2005, IBA has had a low volume of trading activities and has been unsuccessful in obtaining trading contract overseas. Harken is currently pursuing strategic alternatives regarding its investment in IBA.
Balance Sheet Summary
As the ratios below show, Harken has improved its Working Capital by over 100% since year-end 2004 to approximately $45.9 million at September 30, 2005. Harken reduced its debt by 77.6% during the nine months ended September 30, 2005, ending the period with over $46.8 million in cash less debt as detailed below:
(1) Current ratio is calculated as current assets divided by current liabilities
(2) Working capital is the difference between current assets and current liabilities
* Derived from audited financial statements
NON-GAAP FINANCIAL MEASURE
Reconciliation of Operating Margin to Net Income (loss)
Management believes the presentation of this non-GAAP financial measure, in connection with the results for the three and nine months ended September 30, 2005 and 2004, provides useful information to investors regarding the Company's results of operations. Management also believes that this non-GAAP financial measure provides a picture of Harken's results that is comparable among reporting periods and provides factors that influenced performance during the period under the report. This non-GAAP financial measure should be considered in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q for the period ended June 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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Global Energy Development PLC Raises $12.5 Million through Issuance of Convertible Notes
Notes to provide funding for rig contracting and acreage acquisition
Dallas, Texas - November 1, 2005 - Harken Energy Corporation (AMEX: HEC), announced today that Global Energy Development PLC, (‘Global') has raised $12.5 million through the issue of unsecured variable coupon convertible notes due October 30, 2012 ("Notes") to a Swiss-based fund manager. Harken Energy currently holds 11,892,922 ordinary shares, representing approximately 34% of Global's issued share capital.
The Notes have an annual coupon of 5% for the first three years, 6% from October 2008 to October 2010, and 7% thereafter, payable quarterly in arrears. The Notes are convertible into ordinary shares of Global at 305.8 pence per ordinary share, representing a 10% premium to the closing market price on October 28, 2005, the last trading day before delivery of the Notes.
"Global has increased its acreage position and prospects over the past year and we expect to further supplement our current 5.1 million acres over the coming months," said Stephen Voss, Global's Managing Director. "We expect to accelerate the drilling programs associated with a number exploratory projects in our portfolio. This financing also provides Global with additional funds to dedicate towards rig contracting allowing greater visibility over drilling schedules and for general corporate purposes as we move forward."
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries and shareholdings. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements such as "believes", "anticipates", "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q for the period ended June 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
The information contained in this announcement is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered, sold or delivered within the United States or to US persons (as defined in Regulation S) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
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Global Energy Development PLC - Los Hatos #1 Positive Test Results
New well provides extension to established Palo Blanco field
Dallas, Texas - October 27, 2005 - Harken Energy Corporation (AMEX: HEC), announced today that Global Energy Development PLC, (‘Global') has had positive test results from its Los Hatos #1 well and expects to place it on continuous production within seven days. The Los Hatos #1 well is located within Global's exclusive 85,000-acre Los Hatos Exploration and Production Concession Contract in Colombia. Harken Energy currently holds 11,892,922 ordinary shares, representing approximately 34% of Global's issued share capital.
The Los Hatos #1 well perforated and tested the Mirador formation at a maximum rate of 700 metric cubic feet of natural gas per day and 408 barrels of oil per day of 36 degree API gravity oil with BS&W (basic sediment and water) of only 3%. Global owns 100% working interest in the Los Hatos Contract, subject only to an initial 8% royalty, with the size of the royalty to be determined by future production levels. The placing of Los Hatos #1 on production will mean Global has production from five different contracts in Colombia in addition to holding high-potential exploration acreage positions in Colombia, Peru and Panama.
"The success of the Los Hatos #1 well has effectively extended the established, producing Palo Blanco field further to the south," said Stephen Voss, Global's Managing Director. "Finding and producing oil in the Mirador formation is especially encouraging as this formation is producing commercial hydrocarbons from Estero #2, the most northerly well within the Palo Blanco field, and now Los Hatos #1, the southerly extension of the Palo Blanco field. We will promptly undertake additional geologic and engineering analysis to assess the potential additional Mirador reserves throughout both the Los Hatos and Alcaravan contracts. "
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries and shareholdings. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements such as "believes", "anticipates", "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q for the period ended June 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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Harken Energy Corporation Announces 10 Million Share Stock Repurchase Plan
Dallas, TX - September 22, 2005 - Harken Energy Corporation (AMEX: HEC) announced that its Board of Directors has authorized a new stock repurchase program allowing the Company to buy back up to 10 million shares of its common stock. All repurchases will be made from time to time in the open market when opportunities to do so at favorable prices present themselves in compliance with all applicable laws and regulations, including the Securities and Exchange Commission rules.
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements such as "believes", "anticipates", "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q for the period ended June 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
12.07.05
Global Energy Development PLC Mobilizes Rig for First Exploratory Well on Rio Verde Contract in Colombia
11.29.05
Harken Energy Subsidiary Enters into Third Coalbed Methane Exploration and Development Agreement
11.23.05
Harken Energy's Subsidiary, Global Energy Development PLC, Receives New Contract Approval in Colombia
11.09.05
Harken Energy Reports Third Quarter 2005 Net Income of $32.8 Million
11.01.05
Global Energy Development PLC Raises $12.5 Million through Issuance of Convertible Notes
10.27.05
Global Energy Development PLC - Los Hatos #1 Positive Test Results
9.22.05
Harken Energy Corporation Announces 10 Million Share Stock Repurchase Plan
9.21.05
Harken Energy Gives Notice of Conversion of Convertible Notes
9.16.05
Harken Energy Raises $6.3 Million from Lyford Warrant Exercise
9.12.05
Harken Energy Raises $14.1 Million Through Sale of Global Energy Shares
9.08.05
Harken Energy Provides Assessment of Impact from Hurricane Katrina
9.06.05
Harken Energy Completes Two Million Share Buyback of Common Stock
8.17.05
Global Energy Mobilizes Rig to First Exploratory Well on Los Hatos Contract in Colombia
8.16.05
Harken Energy Provides Domestic Operations Update
8.09.05
Harken Energy Reports Net Income of $15.7 Million, 44% Increase in Revenue and 54% Increase in Operating Margin for the Second Quarter of 2005
6.28.05
Harken Energy Completes Two Million Share Buyback of Common Stock and Authorizes an Additional Two Million Share Repurchase Plan
6.27.05
Harken Energy Raises Additional $1.2 Million Through Sale of Global Energy Shares
6.23.05
Harken Energy Raises Additional $3.1 Million Through Sale of Global Energy Sales
6.20.05
Harken Energy Raises $ 2.8 Million Through Sale of Global Energy Shares to Institutional Investors
6.10.05
Harken Energy Raises $4.9 Million Through Sale of Global Energy Shares to an Institutional Investor
6.3.05
Harken Energy Exercises Global Energy Development Warrants
5.31.05
Harken Energy Subsidiary Signs New Technical Evaluation Agreement for 2.1 Million Acre Valle Lunar area in Colombia
5.23.05
Harken Energy Commences Seismic Data Study for Rio Verde Contract in Colombia
5.11.05
Harken Energy Corporation Announces Stock Repurchase Plan
5.10.05
Harken Energy Reports First Quarter 2005 Results
4.29.05
Harken Energy Raises $3.8 Million Through Sale of Global Energy Shares to an Institutional Investor
4.21.05
Harken Energy Announces New Crude Oil Sales Contract Offering Improved Terms for Colombia
4.14.05
Harken Energy Raises $8.4 Million Through Sale of Global Energy Shares to an Institutional Investor
4.11.05
Harken Energy Subsidiary Signs Exploration and Exploitation Contract for the Block 95 Area in Peru
4.5.05
Harken Energy Corporation Provides Domestic Operations Update
4.5.05
Harken Energy Corporation Files 10-K/A - Amended Annual Report
3.29.05
Harken Energy Acquires Second Coalbed Methane Prospect
3.23.05
Harken Energy Acquires 400,000 Acre Coalbed Methane Prospect Located in Indiana
3.18.05
Harken Energy Files 8-K Reporting Non-Reliance on 2004 Financial Statements
3.16.05
Harken Reports 45% Increase in Operating Margin in 2004
3.14.05
Harken Energy Announces the Successful Workover of Canacabare #1 in the Anteojos Field in Colombia
2.17.05
Harken Energy Announces $34 Million Capital Expenditure Budget for 2005
1.27.05
Harken Energy Announces Successful Re-completion, Commencement of Production from Macarenas #1 on Rio Verde Contract in Colombia
1.10.05
Harken Energy Completes Two Million Share Buyback of Common Stock
Global Energy Development PLC Mobilizes Rig for First Exploratory Well on Rio Verde Contract in Colombia
Dallas, Texas - December 7, 2005 - Harken Energy Corporation (AMEX: HEC), announced today that Global Energy Development PLC, ("Global") has commenced rig mobilization to the Tilodiran #2 exploratory well within its exclusive Rio Verde Exploration and Production Concession Contract (the "Contract") in Colombia. Harken Energy holds 11,892,922 ordinary shares in Global, representing approximately 34% of Global's issued share capital.
The Contract, which Global owns 100% of and is subject only to an initial 10.5% royalty, covers approximately 75,000 acres in the central Llanos region and currently contains two producing wells, Tilodiran #1 and Macarenas #1, which were successfully recompleted and brought onto production in late 2004 and early 2005 respectively. Cumulative gross production from these two wells has since been over 87,000 barrels of oil.
The rig mobilization to Tilodiran #2 at this time represents an acceleration of the work program required under the terms of the Contract which specifies that Global must drill the first exploratory well during phase two which commences in May 2006.
Global has acquired and processed 56 kilometers of new 2D seismic within the Contract area during 2005 and reprocessed 300 kilometers of existing seismic in order to select optimum drilling locations. Tilodiran #2 is located approximately 2,200 feet northeast from and in a geologically favorable position updip to Tilodiran #1. Global expects to spud Tilodiran #2 in mid to late December 2005.
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries and shareholdings. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements such as "believes", "anticipates", "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q, as amended, for the period ended September 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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Harken Energy Subsidiary Enters into Third Coalbed Methane Exploration and Development Agreement
Dallas, Texas - November 29, 2005 - Harken Energy Corporation's (AMEX: HEC) wholly owned subsidiary, Gulf Energy Management Company ("GEM"), has entered into a new agreement for the joint exploration and development of coalbed methane (CBM) acreage located in Ohio.
The agreement between GEM and Ohio Triangle, L.P. was effective on November 21, 2005, and calls for GEM to purchase a 65% non-operating working interest in CBM acreage located in Ohio. GEM's current plans are to drill three core holes commencing by the end of the first quarter 2006 in Phase I. Based on favorable results in Phase I, GEM has the option to purchase approximately 20,000 acres of coal rights and initiate a Pilot Program in Phase II. Following a review of Phase II results, GEM has the option to begin a development program during which GEM would provide 100% funding up to total expenditures of $7.5 million.
"This new CBM acreage in Ohio is an excellent strategic fit for our growing portfolio of CBM acreage and is consistent with our goal of building stable production and adding reserves to our asset base," said Jim Denny, Chief Executive Officer and President of Gulf Energy Management Company.
Updating the status of GEM's existing CBM agreements, GEM and its partner, Ute Energy, completed drilling of three core holes on its Ohio CBM prospect area and four core holes on its Indiana CBM prospect area during the third and fourth quarter of 2005. Based on the results, GEM has elected to fund Phase II of the CBM agreement in Indiana and plans to drill its first pilot wells during the first quarter of 2006. Core samples from the Ohio CBM prospect are in the process of being analyzed. Depending on final results, GEM may elect to schedule drilling of pilot wells on its Ohio CBM prospect area during 2006.
"With the initial results of the core samples from our Indiana prospect now in, we believe the gas content and economics are sufficient to begin moving ahead with our first group of five pilot wells in Indiana," Denny commented. "Once these wells are in place and dewatered, we will have our first look at the production and the upside potential of this prospect."
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements such as "believes", "anticipates", "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q, as amended, for the period ended September 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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Harken Energy's Subsidiary, Global Energy Development PLC, Receives New Contract Approval in Colombia
369,000-acre Luna Llena Contract within Valle Lunar acreage
Dallas, Texas - November 23, 2005 - Harken Energy Corporation (AMEX: HEC), announced today that Global Energy Development PLC (‘Global') has received approval for a new exclusive exploration and production concession contract with the National Hydrocarbons Agency of the Republic of Colombia following electing to convert a portion of its Valle Lunar acreage held under a Technical Evaluation Agreement ("TEA"). Harken Energy currently holds approximately 34% of Global's issued share capital.
The new Luna Llena Contract, one of six contracts Global now holds in Colombia, covers 369,000 acres within the approximate 2.1 million acre Valle Lunar TEA, which is located in the established Llanos Basin of eastern Colombia. The Valle Lunar TEA, signed on May 2005, grants Global the exclusive option to convert any of the acreage into a contract or contracts prior to or at the TEA's conclusion in October 2006.
"The early conversion of the Luna Llena Contract reflects Global's desire to accelerate its work program on this selected area due to management's belief that the opportunity to develop substantial medium heavy oil reserve potential is significant," said Stephen Voss, Global's Managing Director.
"Two international oil companies drilled a number of shallow wells in the 1980s within Luna Llena to a depth of approximately 3,000 feet which delineated what is now known to be the El Miedo field. Oil production tests were successful but the opportunity was deemed non-commercial at the time due to low oil prices," said Voss.
Since Global signed the Valle Lunar TEA, the company has conducted Landsat analysis of the acreage, which yielded a considerable amount of surface data, particularly within the Luna Llena area, that can be utilized in subsurface interpretation. In addition, the Luna Llena acreage contains the identified El Miedo field. The El Miedo field has substantial well tests and subsurface geologic control that was acquired by two international oil companies in the 1980s from an extensive drilling effort conducted by these oil companies. Oil production tests were successful at that time. Global has already completed engineering and geologic studies on the El Miedo field.
Global will own 100% of the Luna Llena Contract subject only to an initial 8% royalty, with the size of the royalty to be determined by future production levels. The Contract duration is 30 years divided into an initial six-year exploration phase and a 24 year exploitation and production phase. Under the terms of the Luna Llena Contract, Global must, within 18 months, acquire 165 kilometers of 2D seismic, reprocess 500 kilometers of existing seismic, re-enter and test one existing well and drill two exploratory wells which cover the total geologic column. Global can then elect, if it so wishes, to proceed to phase two which also covers 18 months and requires re-entering another existing well or drilling another exploratory well. Phases three to five, all optional, are each 12 months and require the drilling of an exploratory well in each phase.
Global will continue to hold the remaining Valle Lunar TEA acreage and conduct further geologic analysis and geophysical tests over the next several months, fulfilling all the associated work obligations, with a goal of potentially contracting more of the acreage. Global is finalizing its plans for new drilling in the El Miedo field in the second half of 2006.
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries and shareholdings. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements such as "believes", "anticipates", "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q for the period ended September 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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Harken Energy Reports Third Quarter 2005 Net Income of $32.8 Million
Third Quarter Revenues Increase 39%, Operating Margin Increases 21%
Dallas - Texas - November 9, 2005 - Harken Energy Corporation (AMEX: HEC) is pleased to report Net Income of $32.8 million, or $0.15 per share, for its third quarter ended September 30, 2005. Total revenues in the third quarter of 2005 increased to $11.6 million, an increase of 39% over the third quarter of 2004, due to a continued increase in international production and higher oil and gas prices. Non-GAAP Operating Margin increased to $5.5 million in the third quarter of 2005, representing 21% growth over the same period in the prior year.
Global Stock Sales, Global Warrant Liability Extinguished, Conversion of Convertible Notes
During the three months ended September 30, 2005, Harken sold a portion of its equity interest in Global Energy Development PLC (Global). With the sales of these shares (along with the exercise of Global warrants and share options), Harken's equity interest in Global was approximately 34% at September 30, 2005. Harken recognized gains totaling $11.9 million equal to the amount by which the total sale proceeds exceeded the net book value of its Global shares sold. Harken does not anticipate recognizing similar gains in the future.
The global warrant liability on Harken's balance sheet was extinguished with the exercise of all outstanding Global Minority Owner warrants and the exercise of the Global Warrants held by Lyford Investments Enterprises. Harken recognized a gain of $28 million representing the difference between the cash proceeds received plus the fair value of the Global Warrant liability extinguished and the net book value of Harken's shares in Global sold as of the date of exercise. Harken does not anticipate recognizing similar gains in the future.
Share-based liability related to Global's stock option plan increased due primarily to the increase in Global's common share price along with the continued vesting of Global's outstanding options. During the third quarter of 2005, Global recorded share-based compensation expense of approximately $6.9 million associated with the increased common share price and vesting.
Holders of $3.325 million of 5% Convertible Notes voluntarily converted the debt into approximately 6.5 million shares of Harken common stock, during the three months ended September 30, 2005. The conversion had no effect on profit and loss.
Redemption of Preferred Shares
Harken redeemed all of the outstanding 50,000 shares of Series J Preferred in exchange for $5.0 million in cash, and recorded a non-cash accounting loss to preferred holders of approximately $225,000 related to this transaction.
The Company redeemed 11,825 shares of Series G1 Preferred in exchange for $65,000 in cash. Only 1,600 shares of Series G1 Preferred remain outstanding. Harken recorded a non-cash accounting gain from preferred holders of approximately $489,000.
Harken redeemed 1,000 shares of Series G2 Preferred in exchange for $24,000 in cash. Only 1,000 shares of Series G2 Preferred remain outstanding. A small non-cash accounting gain from preferred holders of approximately $53,000 was recorded.
The Company redeemed 67,715 shares of Series G4 Preferred in exchange for $3.7 million in cash. The Series G4 Preferred is no longer outstanding. Harken recorded a non-cash accounting loss from preferred holders of approximately $204,000.
Operating Summary
Gulf Energy Management Company (GEM)
During the quarter ended September 30, 2005, GEM's Louisiana operations were affected by one tropical storm and two hurricanes that interrupted both production and certain drilling operations. As much as 75% of GEM's domestic production was shut in during September and approximately 40% of its pre-storm production level remains curtailed. GEM continues to inspect and repair damage to its eastern Gulf operations that remain shut-in which include Main Pass, Point a la Hache and non-operated properties at Branville Bay, Backridge, Port Arthur (TX) and Abbeyville. Restoration of remaining curtailed production is also dependent on resumption of downstream infrastructure and the availability of service and equipment contractors necessary for over-water transportation and repairs. As of September 30, 2005, GEM properties were producing at approximately 4.4 million cubic feet equivalent per day.
During the quarter ended September 30, 2005, GEM's oil and gas revenues decreased 11% to approximately $4.1 million compared to $4.7 million for the prior year period primarily due to the decrease in sales and production volumes in the third quarter of 2005 as compared to the prior year period. The company reported accelerated declines in certain field productivity in the Raymondville field as well as lost production due to hurricane Katrina and Rita. The decrease in sales volume was partially mitigated by an increase in average oil and gas commodity prices received, as compared to the prior year third quarter.
GEM's oil and gas operating expense increased 25% to approximately $1.5 million during the third quarter of 2005 compared to approximately $1.2 million during the third quarter 2004 primarily due to property insurance deductibles and other related items for the repair and restoration of damages from Hurricanes Katrina and Rita.
Regarding GEM's Indiana Posey Coalbed Methane Prospect, in September 2005, after the submission of a Phase I core evaluation report, GEM has elected to proceed and fund pilot well drilling under Phase II of the agreement. On GEM's Ohio Cumberland Coalbed Methane Prospect, the coring phase is continuing and expected to be completed in the fourth quarter of 2005. In addition, GEM is actively evaluating other strategic coalbed methane opportunities in pursuit of long-lived reserve prospects to compliment our current oil and gas portfolio.
Global Energy Development PLC (Global)
During the third quarter 2005 as compared to the third quarter 2004, Global reported increased oil revenues, operating expenses and oil volumes. Global's oil revenues increased to approximately $6.6 million during third quarter 2005 as compared to $3.5 million in the third quarter 2004. Oil sales volumes increased 34% to approximately 134,000 net barrels (after royalties and Cajaro's working interest allocation) during the three months ended September 30, 2005 from approximately 100,000 net barrels during the third quarter of 2004. Increased oil sales volumes were a result of improved well performance and successful workovers. Global's average oil commodity prices increased 39% to $49.33 during the third quarter 2005 compared to $35.48 during the third quarter 2004.
Global's operating expenses have increased 135% from approximately $671,000 for third quarter 2004 to approximately $1.6 million for third quarter 2005, primarily due to equipment rentals and diesel fuel costs and workovers due to increased production volumes from certain wells in the second quarter of 2005. These wells include the Tilodiran, the Macarenas, and the Estero #4 and Estero #5 wells. Diesel fuel costs have risen with the increase in price of crude oil.
International Business Associates (IBA)
IBA incurred net trading gains of approximately $536,000 for the quarter ended September 30, 2005. IBA's net loss for the same period was approximately $116,000. During the period ended September 30, 2005, IBA has had a low volume of trading activities and has been unsuccessful in obtaining trading contract overseas. Harken is currently pursuing strategic alternatives regarding its investment in IBA.
Balance Sheet Summary
As the ratios below show, Harken has improved its Working Capital by over 100% since year-end 2004 to approximately $45.9 million at September 30, 2005. Harken reduced its debt by 77.6% during the nine months ended September 30, 2005, ending the period with over $46.8 million in cash less debt as detailed below:
(1) Current ratio is calculated as current assets divided by current liabilities
(2) Working capital is the difference between current assets and current liabilities
* Derived from audited financial statements
NON-GAAP FINANCIAL MEASURE
Reconciliation of Operating Margin to Net Income (loss)
Management believes the presentation of this non-GAAP financial measure, in connection with the results for the three and nine months ended September 30, 2005 and 2004, provides useful information to investors regarding the Company's results of operations. Management also believes that this non-GAAP financial measure provides a picture of Harken's results that is comparable among reporting periods and provides factors that influenced performance during the period under the report. This non-GAAP financial measure should be considered in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q for the period ended June 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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Global Energy Development PLC Raises $12.5 Million through Issuance of Convertible Notes
Notes to provide funding for rig contracting and acreage acquisition
Dallas, Texas - November 1, 2005 - Harken Energy Corporation (AMEX: HEC), announced today that Global Energy Development PLC, (‘Global') has raised $12.5 million through the issue of unsecured variable coupon convertible notes due October 30, 2012 ("Notes") to a Swiss-based fund manager. Harken Energy currently holds 11,892,922 ordinary shares, representing approximately 34% of Global's issued share capital.
The Notes have an annual coupon of 5% for the first three years, 6% from October 2008 to October 2010, and 7% thereafter, payable quarterly in arrears. The Notes are convertible into ordinary shares of Global at 305.8 pence per ordinary share, representing a 10% premium to the closing market price on October 28, 2005, the last trading day before delivery of the Notes.
"Global has increased its acreage position and prospects over the past year and we expect to further supplement our current 5.1 million acres over the coming months," said Stephen Voss, Global's Managing Director. "We expect to accelerate the drilling programs associated with a number exploratory projects in our portfolio. This financing also provides Global with additional funds to dedicate towards rig contracting allowing greater visibility over drilling schedules and for general corporate purposes as we move forward."
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries and shareholdings. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements such as "believes", "anticipates", "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q for the period ended June 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
The information contained in this announcement is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered, sold or delivered within the United States or to US persons (as defined in Regulation S) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
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Global Energy Development PLC - Los Hatos #1 Positive Test Results
New well provides extension to established Palo Blanco field
Dallas, Texas - October 27, 2005 - Harken Energy Corporation (AMEX: HEC), announced today that Global Energy Development PLC, (‘Global') has had positive test results from its Los Hatos #1 well and expects to place it on continuous production within seven days. The Los Hatos #1 well is located within Global's exclusive 85,000-acre Los Hatos Exploration and Production Concession Contract in Colombia. Harken Energy currently holds 11,892,922 ordinary shares, representing approximately 34% of Global's issued share capital.
The Los Hatos #1 well perforated and tested the Mirador formation at a maximum rate of 700 metric cubic feet of natural gas per day and 408 barrels of oil per day of 36 degree API gravity oil with BS&W (basic sediment and water) of only 3%. Global owns 100% working interest in the Los Hatos Contract, subject only to an initial 8% royalty, with the size of the royalty to be determined by future production levels. The placing of Los Hatos #1 on production will mean Global has production from five different contracts in Colombia in addition to holding high-potential exploration acreage positions in Colombia, Peru and Panama.
"The success of the Los Hatos #1 well has effectively extended the established, producing Palo Blanco field further to the south," said Stephen Voss, Global's Managing Director. "Finding and producing oil in the Mirador formation is especially encouraging as this formation is producing commercial hydrocarbons from Estero #2, the most northerly well within the Palo Blanco field, and now Los Hatos #1, the southerly extension of the Palo Blanco field. We will promptly undertake additional geologic and engineering analysis to assess the potential additional Mirador reserves throughout both the Los Hatos and Alcaravan contracts. "
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries and shareholdings. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements such as "believes", "anticipates", "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q for the period ended June 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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Harken Energy Corporation Announces 10 Million Share Stock Repurchase Plan
Dallas, TX - September 22, 2005 - Harken Energy Corporation (AMEX: HEC) announced that its Board of Directors has authorized a new stock repurchase program allowing the Company to buy back up to 10 million shares of its common stock. All repurchases will be made from time to time in the open market when opportunities to do so at favorable prices present themselves in compliance with all applicable laws and regulations, including the Securities and Exchange Commission rules.
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements such as "believes", "anticipates", "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q for the period ended June 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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