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Gold/Mining/Energy : Harken Energy Corporation (HEC) -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (4592)	9/30/1999 8:07:00 PM
From: Robert Sanders	Respond to of 5504

The Bolivar I asked Faulkner at the Denver O & G Conference if the Bolivar field would enjoy Ecopetrol's new terms as a "new discovery." His response was that the Bolivar was more like "exploitation" than "exploration" because of all the previous drilling by Esso and the resulting data. For this reason, the Colombian government likely wouldn't consider HEC's first to wells on the block a "new" discovery. They added, however, that they would argue that the third well, the Laurel, would be a "new" discovery as it was several miles out from the other two wells. My point is this. They knew there was oil at the first two wells because of the drilling by Esso. On the Laurel, they were "exploring," and came up with a dry hole. The perception floating around before that news was that the Bolivar was going to be a slam dunk, but obviously that's not the case. All these reserves that seemed to be in the bank on the Bolivar are now more in doubt. Maybe the reserves are there, but they don't appear to be giftwrapped. This makes HEC much more vulnerable, in my opinion, and this is why they're getting downgraded and the the stock is tumbling. It's probably the same reason that the management is talking about Costa Rica and acquiring Xplor, etc. Just my two cents. Bob