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

To: Rod Copeland who wrote (4843)	1/18/2000 7:04:00 PM
From: R F B, Jr.	Read Replies (2) \| Respond to of 5504

Rod : listened to the 1/2 hr. program...nothing earth shattering...Steve Voss 4th Generation Texan been with HEC for 10 years...describes HEC strategy as 2 fold...domestic and of course international....cited lucrative reduction in royalty payments and back-in %'s by ecopete on NEW CONTRACTS only...same 20% royalty with up to 50% split with ecopete will remain on old concessions....new terms can allow for 5% royalty with up to 65% to 68% of oil going to HEC (or other companies)....Voss stated colombia will have to IMPORT oil in a relatively short period of time if they do not produce...therefore they have offered these new concessions which enable a company to come into an existing field and redrill holes..sharing in added growth to field reserves...HEC looks upon this as a low risk high reward proposition and is currently looking to expand with new contracts and concessions under this new agreement...Ecopete believes expanding existing fields could add 5 bbo.... talked briefly about olivo and laurel...hec probably will stay away from high risk drilling in the northern part of cambulos...Voss believes that Olivo where reserves on the 2 wells originally were 10k bopd each (2)and subsequently knocked down to 2k bopd should once again be revised within a week or 2....work on these wells was encouraging but he wouldn't comment past that...Voss believes HEC's 1.4mmacres within 4 concessions in Costa Rica will prove to be productive....1/2 are on shore and 1/2 off shore...either way the production costs should be quite low as well as transportation costs....Strain stated HEC has about 140 mm shares outstanding....Voss said that estimates NAV on reserves alone to be $2/S....bolivar could add $8-$9/S and Costa Rica $7/S with any luck at all.... Voss said they would be looking actively for partners whom will have alot to say as to the where, when, why, and how of any future holes...seems they may have something up their sleeve in this regard.... regarding the $85mm in debt due in 2003 Voss stated that this should not be a problem...may result in some shareholder dilution (if price of stock remains the same)... HEC is hosting Westergard/Strain Conference in NYC on February 17, 2000...ambassador to colombia is a planned speaker at that conference.... that's about all i can understand from from notes on the show rfb