Harken Energy (HEC)
patim:
Razorbak.....do you have any price target on HEC??
I have no particular target, other than a home run. If push comes to shove, I'll take a grand slam, but no promises, OK? ;-)
Seriously, though, how high is high? I shorted this stock near $7.00, but went long at a buck on the nose, and then doubled down at $0.625. It took three partial fills over two consecutive days to get me there, and I still didn't completely fill my limit order, but my mission was accomplished for the most part. I've now got shares in both my IRA and my cash account. I had no idea I would luck out and catch the exact 52-week bottom, but I'm not complaining a bit. :)
FWIW, Harken's recent $12 MM acquisition was paid for with subordinated notes converting into common stock at $6.5. As my good friend Zeev Hed says, anytime you can set the conversion rate at 6.5 times the current market value, you are doing fine.
Message 12581134
Message 12585147
Below is a copy of the recent press release announcing the Company's latest acquisition.
Best of luck to both of us. This one I'm still holding.
Regards,
Razor
"Harken Announces $12 Million Prospect Acquisition"
Thursday January 13, 12:36 pm Eastern Time
Company Press Release
SOURCE: Harken Energy Corporation
HOUSTON, Jan. 13 /PRNewswire/ -- Harken Energy Corporation (Amex: HEC - news) announced today that it has acquired nine exploration prospects covering approximately 51,000 net acres in Texas and Mississippi from Benz Energy, Incorporated. The prospects include acreage in the Cotton Valley Reef, Wilcox, and Frio Trends in Texas and the Salt Dome and Salt Ridge Basins of Mississippi. The Company has acquired varying working interests in the prospects ranging from 15% to 100%. Along with the acreage acquisition is a substantial amount of 2-D and 3-D seismic data. The acreage acquired represents high-risk, high potential prospects with potential for material gas discoveries.
In exchange for the prospects, Harken has issued subordinated notes with a face value of $12 million, which carry a 5% annual coupon. The notes are convertible into Harken common stock at $6.50 per share and they mature on May 26, 2003. Additionally, under certain circumstances, the sellers will receive a 20% back in after payout of all the aggregated costs associated with the purchase and development of the prospects covered under this agreement.
Harken offered the following additional update on various projects:
No Y2K Operational Impact. The Company experienced no Y2K problems, and all systems, domestically and internationally, functioned without interruption.
Alcaravan Association Contract. The Company's production in its 210,000 acre Alcaravan Association Contract continues. During the first 7 days of this year, the Estero #1 well has produced on average a little over 2,300 gross barrels of oil per day. The production was recently limited by a pipeline allocation limitation. The Company has asked Ecopetrol, the Colombian state oil company which also has an interest in the Alcaravan production, to mediate the problem with the pipeline operator. Harken is preparing to truck oil from the well to enhance capacity until the problem is resolved.
Equipment is being mobilized to the well site of the Canacabare #1 well for testing. If the current dry season continues as expected, testing should begin in mid January, with results being available in late February or early March. The unpaved roads must remain dry enough for the mobilization of the rig and heavy testing equipment.
Costa Rica Seismic Acquisition and Legal Status. The acquisition of seismic data has been completed in the Company's offshore block in Costa Rica and the seismic vessel has been released. Processing and interpretation of the data has already begun.
Concession assignments of the contract have been presented to the government for final approval. It is anticipated that contractual rights will be finalized in the first or second quarter of this year. Drilling is expected to begin in the second half of 2000.
Bolivar Association Contract Area. Production continues in Harken's 250,000 acre Bolivar Association Contract area. The Olivo #1 well in the La Luna formation has produced an average of approximately 750 barrels of oil per day and no water since November 22, 1999 when the wells were once again brought on line for a long-term test. The Olivo #1 has stabilized and is currently producing slightly over 1,000 barrels of oil per day. The Rosa Blanca formation Catalina #1 well, which has had a wide range of production volumes, has produced an average of 602 barrels of oil and 730 barrels of water per day. That well is currently producing approximately 250 barrels of oil and 800 barrels of water per day. Since their discovery, the two wells have produced a cumulative total of 650,000 barrels, which is 30% more than Esso produced from the same field over a period of 20 years. The Company is evaluating additional alternatives to properly develop and produce these fields.
Mikel D. Faulkner, Harken's Chairman stated that, ``Our increase in domestic exploration and production has been significant over the past year and we look forward to increasing these activities in 2000. Additionally, our international activities continue to provide additional cash flows and we look forward to growth in that area during the coming year.'
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 Forms 10-K and 10-K/A for the year ended December 31, 1998. Actual results may vary materially.
SOURCE: Harken Energy Corporation
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