Harken Energy Subsidiary Acquires New 85,000 Acre Exploration and Production Contract for the Los Hatos Area in Colombia
05 November 2004 - 1:57AM
PR Newswire (US)
Harken Energy Subsidiary Acquires New 85,000 Acre Exploration and
Production Contract for the Los Hatos Area in Colombia New Area
Adjoins the Established Palo Blanco Field DALLAS, Nov. 4
/PRNewswire-FirstCall/ -- Harken Energy Corporation (AMEX:HEC)
announced its 85% owned subsidiary, Global Energy Development PLC
("Global"), signed a new Exploration and Production Contract with
the National Hydrocarbons Agency of the Republic of Colombia for
the Los Hatos area, located in the central Llanos region. Global
will own 100% of the contract subject only to an initial 8% royalty
payable to the Colombian Ministry of Energy. The final size of the
royalty is to be determined by future production levels. The
contract duration is approximately six years for the exploration
phase and 24 years for the exploitation phase. The contract grants
Global exclusive exploration and production rights to 85,000 acres
which adjoin the established, producing Palo Blanco field. Terms of
the contract require Global during phase 1 to drill one exploratory
well. The time period for phase 1 is 16 months. If Global elects to
enter phase 2 of the contract, Global must drill either one well or
acquire 50 kilometers of 2D seismic. Phases 3, 4 and 5, also
optional, require one exploratory well to be drilled per phase.
Phases 2, 3, 4 and 5 have a time period of 12 months each. "We are
very excited to have signed this new contract," said Stephen C.
Voss, Managing Director of Global. "The Los Hatos acreage is
contiguous with our existing Alcaravan acreage allowing the company
the opportunity to potentially expand the established Palo Blanco
Field to the south. The Los Hatos contract supplements our current
active drilling program in Palo Blanco where previous drilling
activity has indicated that additional reserves may exist in or
near the field. "We plan to pursue the drilling of at least one
exploratory well in the new contract area, to be located south of
our Cajaro # 1 well which was drilled during 2003 and is now
producing high quality oil. Should this exploratory well be
successful, we believe additional drilling locations, reserves and
production could be added to our expanding Palo Blanco complex
area. At December 31, 2003, Harken listed proved reserves of
approximately 1.8 million net barrels related to its interest in
the Palo Blanco field. "We believe the Los Hatos contract, together
with our recently signed Rio Verde contract provides Harken with
considerable opportunities going forward." 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, http://www.harkenenergy.com/ , or by
calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303)
665-4200. This announcement may contain forward-looking statements
as defined by the Securities and Exchange Commission. Harken,
however, believes that it is important to provide this operations
update and communicate its future expectations to its stockholders.
The forward-looking statements in this announcement reflect the
current view of management with regard to future events and 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. These risks,
uncertainties and other factors include, among others, the risks
described in Harken's filings with the Securities and Exchange
Commission including the Annual Report on Form 10-K for the fiscal
year ended December 31, 2003 filed on March 26, 2004 and its Form
10-Q for the quarter ended June 30, 2004 filed on August 12, 2004.
Statements regarding future production are subject to all of the
risk and uncertainties normally associated with exploration,
development and production of oil and gas. These risks include,
without limitation, variability in the price received for oil and
gas production, lack of availability of oil field goods and
services, environmental risks, drilling and production risk, risk
related to offshore operations, and regulatory changes. Investors
are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ
materially from those projected in the forward-looking statements.
Although Harken believes that the expectations reflected in the
forward-looking statements of this announcement are reasonable, it
can give no assurance that such expectations will prove to be
correct or that unforeseen developments will not occur. Harken
undertakes no duty to update or revise any forward-looking
statements. For further information, please contact: Bill Conboy,
Senior Account Executive, , or Bevo Beaven, Vice President, , both
of CTA Public Relations, +1-303-665-4200, for Harken Energy
Corporation. DATASOURCE: Harken Energy Corporation CONTACT: Bill
Conboy, Senior Account Executive, , or Bevo Beaven, Vice President,
, both of CTA Public Relations, +1-303-665-4200, for Harken Energy
Corporation Web site: http://www.harkenenergy.com/
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