Looks like they believe there's oil in them there hills.
Harken Sells 1.4% Interest in Three Well Colombian Drilling Program for $7 Million
PR Newswire, Tuesday, December 30, 1997 at 09:16
DALLAS, Dec. 30 /PRNewswire/ -- Harken Energy Corporation (AMEX:HEC)
("Harken") announced today the completion of a sale of a 1.4% contractual net
profits interest in its previously announced Colombian three well program for
exploratory drilling in the Middle Magdalena Basin. Three European investment
groups acquired this 1.4% interest for $7 million cash. As was previously
announced, EnCap Investments L.C. recently purchased a 5% interest in the same
program for $25 million.
This three well exploratory program contemplates the drilling of one
prospect on Harken's Bocachico contract acreage and the drilling of two
prospects on the Cambulos contract acreage. The acreage currently identified
for these three prospects approximates 20,000 acres out of the 500,000 acres
held by Harken under these two association contracts in the Middle Magdalena
Basin.
Harken's Chairman, Mikel D. Faulkner, stated, "We intend to retain at
least a 90% ownership interest in this program in order to maximize the
benefit to our shareholders should this exploration be successful. Unless
costs increase or our plans change, the $32 million from the sales of this
6.4% interest should provide the majority of the funds that will be required
for this three well program." Faulkner continued, "I am particularly pleased
that we were able to structure this agreement in such a way that under certain
future circumstances any party, or Harken can exchange this interest for
equity in Harken at a future market price or cash at Harken's election."
Harken Energy Corporation (AMEX:HEC) ("Harken") explores for, develops
and produces oil and gas reserves domestically and internationally. Certain
statements in this news release regarding future expectations and plans for
international oil and gas exploration and development may be regarded as
"forward looking statements" within the meaning of the Securities Litigation
Reform Act. They are subject to various risks, such as the inherent
uncertainties in interpreting engineering data related to underground
accumulations of oil and gas, timing and capital availability, discussed in
detail in the Company's SEC filings, including the Annual Report on Form 10-K
for the year ended December 31, 1996. Actual results may vary materially.
SOURCE Harken Energy Corporation
-0- 12/30/97
/CONTACT: Tracy Wied-Buchanan of Harken Energy Corporation, 97 |
