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

To: Craig Lawler who wrote (3025)	6/15/1998 1:02:00 PM
From: R F B, Jr.	Read Replies (3) \| Respond to of 5504

Craig: On June 6, 1997 HEC announced a $70mm financing with the close of a sale of convertible notes in Europe. Those notes bear interest at 5.5% per year until maturity in 2002, unless earlier redeemed or converted. The notes could be forced into conversion under "certain conditions" at a conversion price of $5 per share. I'm not sure what the "certain conditions" were/are but from previous convertibles issued by HEC, maintaining a certain stock price for a 30 day period was part of the deal. Don't know if some, any, or all of these have been converted yet. This $70mm would represent 14 million shares. On May 27, 1998 HEC announced $85 mm financing with the close of a sale of convertible notes in Europe. These notes bear interest at 5% per year until maturity in the year 2003 unless earlier redeemed or converted. Thes notes could be forced into conversion at $6.50 per share under "certain conditions". IMO, if there were anyone holding convertibles from the 1997 financing they might have a very strong reason to be shorting the stock at this time. Prior to the issuance of the new convertible notes, it was my belief that the total financing package would be in the $170 mm range with half the issue being offered in Europe and half here in the US. Company probably feels that with undervalued stock price, low oil prices, and general market attitude toward small/mid cap companies, they would not do anymore financing until conditions improved. The fact remains that HEC has cash, rigs, prospects, and a whole lot of potential. RFB