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

To: art slott who wrote (3547)	9/18/1998 9:44:00 AM
From: SDR-SI	Read Replies (1) \| Respond to of 5504

To all: This morning's press release follows. Not a cause for "IRRATIONAL EXUBERANCE", but certainly cause for "RATIONAL EXUBERANCE" in that it indicates that things are progressing well (no pun intended), in spite of some minor problems - just another indication of good management. > > >Harken Announces Progress on Transportation and Drilling Efforts DALLAS, Sept. 18 /PRNewswire/ -- Harken Energy Corporation (Amex: HEC) announced today that it is nearing completion of its 2.3 mile oil pipeline connecting the Palo Blanco field to the existing crude oil pipeline system. The Palo Blanco field is located in the Alcaravan Contract Area in the Llanos Basin of Colombia and contains Harken's Estero wells. Initial plans for the 12 inch pipeline calls for the introduction of small amounts of crude into the new line, gradually increasing to pipeline capacity of up to 4,000 BOPD. During this process, there will be continual monitoring for any necessary adjustments as the Palo Blanco crude is blended with other oil already being transported in the system. Harken hopes to begin transporting oil within the next few weeks pending technical approval from the other pipeline transporters and final installation of pumping equipment. Harken has been trucking up to 500 BOPD from the field in advance of pipeline completion. The Bolivar Contract Area pipeline construction project is on schedule for completion by this year-end or early first quarter of 1999. Harken is currently acquiring related right of way and permits and believes that the process is on target with the previously released timetable. The initial Bolivar oil and gas pipelines are being designed to transport up to 30,000 BOPD and 150 million cubic feet of gas per day, respectively, with expansion capacity of up to 150,000 BOPD. Harken is currently trucking approximately 2,500 BOPD from the field and expects to increase that to the trucking capacity limit of 5,000 BOPD within the next 30 days. Harken also is finalizing mobilization of two rigs to the locations for its next two wells on the Bolivar Contract Area, the Palenque #1 and Laurel #2. The rigs are on location and awaiting arrival of additional specialized safety equipment that Harken utilizes in drilling underbalanced wells. This underbalanced equipment was delayed in its scheduled departure from the port of Houston by tropical storm Frances and other severe weather in the Gulf of Mexico. It is expected that both wells should commence drilling within 30 days. As expected, the Torcaz #5 well on the Bocachico Contract Area has been tested with similar results to Harken's two previously drilled wells in the field, the Torcaz #2 and Torcaz #3. Although still undergoing evaluation, it was initially tested for 529 BOPD while maintaining high fluid level from the Lower Mugrosa "B" formation. An additional test of the Mugrosa "A" formation, which has similar oil saturation characteristics to the Mugrosa "B" formation, is planned to be completed shortly. As previously announced, the Islero #1 well, on the Cambulos Contract Area, is currently drilling. This well recently encountered highly fractured and faulted formations which temporarily resulted in a stuck drill string. The problem was subsequently corrected and Harken is currently sidetracking the problem zone. The initial drilling schedule included time contingencies for such unpredictable situations. The well is currently still on schedule and total depth should be reached in accordance with the previously announced 60 day schedule if no further problems are encountered. "The installation of the Palo Blanco field pipeline is the first permanent transportation facility completed by Harken in Colombia and represents a milestone in the Company's Colombian operations," commented Mikel D. Faulkner, Harken's Chairman. He went on to add, "In addition, the development schedule on the Bolivar block is exciting as we expand on our previous successes there." 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 to the Company's SEC filings, including the Annual Report on Form 10-K for the year ended December 31, 1997. Actual results may vary materially. Harken Energy Corporation Colombian Exploration Exploration Track Record Well Date Comments Alcaravan #1 (Alcaravan Miradores) February 1995 Dryhole Torcaz #2 (Bocachico) October 1996 600+BOPD Estero #1 (Alcaravan Miradores) April 1997 4,000+BOPD Torcaz #3 (Bocachico) May 1997 600+BOPD Catalina #1 (Bolivar) November 1997 9,680+BOEPD Olivo #1 (Bolivar) March 1998 10,800 BOPD Estero #3 (Alcaravan Miradores) December 1997 2,000+BOPD Canacabare #1 (Alcaravan Miradores) March 1998 Testing next dry season Torcaz #5 (Bocachico) June 1998 500+BOPD Islero #1 (Cambulos) August 1998 Currently drilling Laurel #2 (Bolivar) October 1998 Final equipment moving in Palenque #1 (Bolivar) October 1998 Final equipment moving in Events to Monitor Alcaravan Miradores -- Phase I Palo Blanco pipeline is substantially complete Cambulos -- Drilling of two exploratory wells (Guadual #1, Sumpaz #1) Bolivar -- Drilling of two exploratory wells (Palenque #2, Laurel #1) Bolivar -- Install Phase I Bolivar pipelines pending permit approval Los Olmos -- Complete preliminary subsurface engineering study Note: The current drilling schedule is subject to changes due to numerous factors, some of which are beyond the Company's control, including permitting, equipment scheduling, contiguous area drilling activity, seismic acquisition and weather. SOURCE Harken Energy Corporation Web Site: harkenenergy.com < < < Best to all. Steve