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

To: Arktic who wrote (3266)	7/16/1998 7:38:00 PM
From: Tony Grier	Respond to of 5504

News I didn't see posted 07:57 PM ET 07/15/98 "Colombia play" Harken to up output, lay pipelines NEW YORK, July 15 (Reuters) - Harken Energy , one of the leading independent exploration companies in Colombia, will see growing production of crude oil from its acreage in Colombia, company officials said in New York. The company also is planning to build pipelines there to allow further increases, the executives said. "You'll see a lot of ramp-up in production and in pipeline (construction)," said Harken's President Bruce Huff at the American Stock Exchange Energy Conference in New York on Tuesday. Dallas-based Harken, a self-described "Colombia play," operates five association contracts in Colombia, of which the Bolivar contract in the northern part of the country is most promising. Harken's U.S. assets and production are used mostly to fund its work in Colombia, company officials said. "The reason to be involved in Harken is the potential for large discoveries in Colombia, and Harken's exposure to that potential," Harken's Chairman Mikel Faulkner told the conference. After successfully testing the Catalina-1 well in the Bolivar association contract last November, Harken had another successful well, Olivio-1, in March. With about 7,500 barrels per day (bpd) of light crude from the Catalina well, and about 10,500 bpd of much heavier crude from the Olivio well, Harken expects to begin transporting about 10,000 bpd of crude to a Colombian refinery by next week -- if all goes well, its executives say. The crude will be trucked to a a nearby pipeline, and Harken officials say the company has applied for a permit to build a smaller pipeline connecting the well to the existing line. Harken plans to drill another four exploratory wells in its Bolivar association contract by the end of 1998, and depending on the outcome of the drilling, will begin considering additional pipelines in the area by late 1998. By the end of the month, Harken plans to drill its first exploration well in the Cambulos contract, which is just north of the giant Emerald Mountain field discovered by Seven Seas . Proved reserves of crude at Emerald Mountain are 132 million barrels, and probable reserves are estimated at 594 million barrels. "There is some surface continuation of Emerald Mountain (at Cambulos); in fact, we believe there is significant continuation," Faulkner said. The first well should take about three months to complete and will be followed by another three wells in the Cambulos contract by the end of the year. Production testing at Harken's Torcaz-5 well in the Bocachico association contract will begin in the next two weeks. The company is planning to drill another well in its Alcaravan contract area by the end of the year. Harken doesn't plan any exploration wells in its Los Olmos contract until next year, company officials said. Harken Energy's stock was down 5/16 at 4-1/6 Wednesday in trading on the American Stock Exchange. --((Atiya Hussain, New York Energy Desk +1 212 859 1848; fax 859 1629; e-mail nyc.energy.newsroom@reuters.com))