Harken Second Quarter Revenue Increases 117%
HOUSTON, Aug. 14 /CNW/ -- Harken Energy Corporation (Amex: HEC - news) announced today that total revenues increased from $5.1 million in the second quarter of 1999 to $11.1 million for the quarter ended June 30, 2000. Additionally, oil and gas revenues increased 163% during the second quarter of 2000 when compared to the prior year quarter. Barrels of oil equivalent production volumes increased approximately 35% from the comparable quarter of 1999. Net income for the quarter just ended was $1.7 million compared with a net loss of $2.8 million in 1999.
EBITDA for the quarter just ended was $4.4 million compared with only $778,000 for the comparable period in 1999, representing a 466% increase. Additionally, since December 31, 1999 Harken has been able to repurchase $10.7 million face value of its outstanding Euronote offering at an approximate 50% discount. A detailed summary of the financial results for the periods is as follows:
Three Months Ended Six Months Ended
June 30, June 30,
Operations: 1999 2000 1999 2000
(restated) (restated)
Total revenues $5,100,000 $11,077,000 $9,436,000 $21,349,000
Earnings before interest,
taxes, depreciation
and amortization
(EBITDA) 778,000 4,405,000 1,867,000 8,670,000
Net income (loss)
before extraordinary
items (2,238,000) (132,000) (3,893,000) (2,314,000)
Extraordinary items (589,000) 1,872,000 (589,000) 1,865,000
Net income (loss) (2,827,000) 1,740,000 (4,482,000) (449,OOO)
Per Share Data:
Net income (loss) per
common share $(0.01) $0.01 $(0.09) $(0.00)
Basic weighted
average common
shares outstanding 139,817,277 166,345,743 137,297,387 161,771,010
The following table sets forth the estimated net proved reserves of Harken in Colombia as of December 31, 1999 and June 30, 2000, as reflected in reports prepared by Gaffney, Cline and Associates, Harken's independent reserve engineers. In August 2000, following discussions with the Securities and Exchange Commission's ("SEC") engineering staff, and in resolution of these discussions, Gaffney, Cline and Associates, agreed to revise Harken's oil and gas reserves in Colombia to remove the reserves associated with the Norean/Crisol gas field and the Trigos oil field, both on Harken's Bolivar Contract area, from the proved category. The June 30, 2000 reserve information also reflects reductions in the proved reserves from the La Luna formation as a result of recent production information from Harken's Olivo #1 well on the Bolivar Contract area. The Colombian oil and gas reserve adjustments caused minor changes in the depreciation and amortization rates for the Company's Colombian oil and gas properties. The resulting changes increased Harken's net loss by $135,000 and $165,000 for the year ended December 31, 1999 and the quarter ended March 31, 2000, respectively. The previously filed statements have been amended by the Company to reflect such changes, as well as the revised reserve disclosures.
Colombian Proved Reserves
Volumes Pre-tax
Oil Gas Net Present
(Barrels) (MCF) Value
December 31, 1999
Previously reported 27,139,000 44,400,000 $ 266,800,000
Less Norean/Crisol
gas reserves --- (44,400,000) (4,900,000)
Less Trigos oil reserves (3,819,000) --- (30,200,000)
As restated 23,320,000 --- $ 231,700,000
June 30, 2000 18,167,000 --- $ 224,640,000
Mikel D. Faulkner, Harken's Chairman, stated, "We are extremely pleased with the strong cash flows generated during the second quarter. Additionally, we continue to be bullish on the industry and the outlook for increased opportunities and market recognition for exploration and production companies like Harken."
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, 1999. Actual results may vary materially.
For further information
J. Marc Lewis, 281-717-1300, or fax, 281-717-1420, or mlewis@harkenenergy.com |
