as per Hec
COMPANY RELEASE FOLLOWS:
> > > Harken Announces Increase in Palo Blanco Field Size From Recent 3-D Seismic Shoot
PR Newswire, Tuesday, October 06, 1998 at 10:15
DALLAS, Oct. 6 /PRNewswire/ -- Harken Energy Corporation (AMEX:HEC)
announced today that it has recently completed an internal evaluation of the
50 square kilometer 3-D seismic data acquisition on the Palo Blanco field on
its 242,000 acre Alcaravan/Miradores Association Contract Areas of Colombia.
Harken's original estimates indicated a structure size of approximately
1,200 acres. After evaluating this recently acquired seismic information, and
correlating it with available area well log data, Harken now believes that the
Ubaque structure, which is productive in its Palo Blanco Field, could be up to
400% of the size previously calculated. Current internal calculations put the
structure as large as 5,000 acres.
Additionally, it is expected that the weather will be dry enough during
the fourth quarter to resume testing operations on the Canacabare #1 well.
Testing on this well, in the northern Alcaravan Area, had to be suspended
earlier because of the rainy season. Final results of that well will be
reported as soon as weather permits.
As previously reported, Harken encountered problems in drilling the Islero
#1 well on the 300,000 acre Cambulos Association Contract Area. The Company
has had problems with continuous sticking of the drill string in a highly
fractured and faulted section of subsurface structure. Harken plugged back to
approximately 1,400 feet and sidetracked the problem zone, setting
intermediate casing to address the problem. The well is currently at
approximately 4,700 feet and drilling ahead. The well should reach the target
depth sometime during mid October.
Drilling on the 250,000 acre Bolivar Association Contract Area should
commence soon. Most of the necessary drilling equipment, which was delayed by
tropical storms in the Gulf of Mexico, is in Colombia and commencement of
drilling operations will be announced in a future press release.
The current plans for the development of the Bolivar block call for a
significant number of wells to be drilled over the next three years. As a
part of this process, Harken is currently in discussions with a number of
financing sources to provide debt financing for the development of the block.
Such a credit facility could enable the Company to accelerate its development
of the field while still preserving its working capital position for an
expanded exploration effort. As a part of this financing plan, and in order
to include Ecopetrol in the future planning process, the Company has decided
to reevaluate its drilling schedule in anticipation of receiving long-term
financing. Also, Harken believes that lower oil prices have increased the
availability of rigs at attractive prices. As a result, Harken has decided
not to renew the long-term contract for the Pride rig in anticipation of more
favorable short-term alternatives. While this might temporarily slow down the
drilling pace on Bolivar, it is anticipated that drilling could accelerate
significantly once such a credit facility is active.
The pipeline construction project on the Bolivar block is on track as
previously announced. The acquisition of rights of way and environmental
permits is on track and pipeline completion remains scheduled for late 1998 or
early 1999.
The 374,000 acre Los Olmos Association Contract Area is currently
undergoing a geological study. Under terms of the contract with Ecopetrol,
Colombia's National oil company, Harken has to reprocess 165 kilometers of
existing seismic and acquire an additional 25 kilometers of new seismic data
during the first year. A geochemical study of the source rock is underway and
the seismic data for reprocessing is currently being analyzed.
"We continue to make progress on all fronts in our Colombian blocks,"
stated Mikel D. Faulkner, Harken's Chairman. He added, "This is a difficult
environment for many oil and gas exploration companies. However, we are
fortunate to have the capital to pursue our exploration projects without
delay. In this time of distress for the industry, there are numerous
opportunities that present themselves to companies with a strong capital base.
We intend to take full advantage of this window of opportunity in our efforts
to further increase Harken's shareholder value."
Harken Energy Corporation ("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, 1997. Actual results may vary materially.
SOURCE Harken Energy Corporation
-0- 10/06/98
/CONTACT: J. Marc Lewis of Harken Energy Corporation, 972-753-6900,
Fax: 972-753-6972, or Email: mlewis@harkenenergy.com/ < < <
Think I'll pick more up at.20. This should help with financing. |
