Harken Issues Update Letter to Shareholders
HOUSTON, Aug. 7 /PRNewswire/ -- The following letter to shareholders was
issued today by Harken Energy Corporation (Amex: HEC):
To the Shareholders of Harken Energy Corporation
Fellow Shareholders:
Although it has not been our custom to provide updates and release
information in this format, I felt it is appropriate at this time, as we are
moving your Company into new directions, to provide you directly an update of
our efforts.
As you may recall, in June we announced a Restructuring Plan for Harken.
Under this Plan we stated it was the Company's intention to implement certain
changes, which would focus on two specific goals:
-- To concentrate the Company's future activities on domestic exploration
and development, where the Company has established a track record of
significant success particularly during the past three years.
-- To seek a new venue for the Company's international assets, that will
provide our shareholders continued benefit from this potential upside
growth and development while redirecting the Company's future
available capital to domestic gas exploration and development.
The Company has made strides toward implementing these goals and continues
to move through the numerous transition steps necessary to meet these goals.
Since the first of the year, the Company has been successful in retiring
$19 million of its long-term debentures through exchanging that debt for
preferred stock. The Company completed sales of some of the higher operating
cost properties that were not in our area of focus, the Gulf Coast region.
These sales generated approximately $13 million in cash proceeds. The Company
has implemented cost reduction steps that are expected to result in the
elimination of $2.5 million in gross annual overhead expense.
Why did the Company refocus from the international high risk exploration
targets of past years to a lower risk domestic exploration focus?
-- Today in America, natural gas represents the best energy resource
available for the near future. Natural gas is one of the cleanest and
least pollutive energy sources available to industry today. We have
this resource available domestically at attractive finding costs to
the explorationist who can apply today's exploration tools with 3-D
seismic. International exploration, particularly in the country of
Colombia, is not a favored investment area today. Harken wants to
maximize our shareholder's value, therefore fewer capital dollars
should be placed in international investments and more of the
Company's capital directed toward its successful domestic program.
Foreign stock markets, in particular the U. K. exchanges, value
international exploration much more favorably. Therefore locating
Harken's international assets on those markets should bring benefit to
our shareholders through Harken's continued investment interest in
those assets.
Can Harken build a successful domestic exploration company?
-- Yes, and in fact, we already have. Over the past two years Harken has
participated in the drilling of 27 new wells domestically in five
prospects located in our focus area of the Gulf Coast region. Our
success ratio on these wells has been nearly 90% commercially
productive. During this period of time we have been able to find
natural gas at a very competitive finding and development cost per
MCF. The 24 successful wells drilled during this period represent
approximately 16 billion cubic feet equivalent of natural gas to
Harken's ownership.
What does Harken have planned for the next two years?
-- We intend to continue to explore, expand and develop in the Texas and
Louisiana Gulf Coast region. Harken has developed an inventory of
over twenty five prospects in this specific area. Besides growth
through the "drill bit", Harken intends to find opportunities to take
larger growth steps through strategic acquisitions as it has done in
the recent past. Harken will further continue to enhance its balance
sheet over the next two years, through continuing to reduce long term
debt.
What about communication to the market?
-- To assist us in better communicating with the investment community,
Harken has recently engaged Carl Thompson Associates, Inc. one of the
nation's leading investor relations firms to coordinate and implement
a national investor relations program for the Company. With the
assistance of Carl Thompson Associates we will have better
dissemination of news and information to our shareholders and the
investment community. Furthermore, they will be assisting us in our
goal of reaching new institutions and investors over the next year.
Harken holds strong to our belief that investment in energy is both a
timely and a valuable asset. You have our pledge to do all in our ability to
turn these plans and goals into creating shareholder value. As we try to
increase our communication to share owners, we encourage you to monitor our
web site at www.harkenenergy.com for news announcements and other developments
as they occur.
I appreciate your continued support of Harken Energy Corporation.
Sincerely,
HARKEN ENERGY CORPORATION
Mikel D. Faulkner
Chairman
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SOURCE Harken Energy Corporation
-0- 08/07/2001
/CONTACT: Investor Relations of Harken Energy Corporation,
+1-281-717-1300, or info@harkenenergy.com/
/Company News On-Call: prnewswire.com /
/Web site: harkenenergy.com /
(HEC) |
