Hi Jeff and Ed, I am sure you have both seen this but I am posting it for those less fortunate.
Harken Announces Continued Proved Reserve Growth and Third Quarter Results
DALLAS, Nov. 11 /PRNewswire/ -- Harken Energy Corporation (Amex: HEC - news; ''Harken'') announced today that an internal reserve evaluation as of September 30, 1998 has resulted in an increase in proved oil and gas reserve volumes when compared with December 31, 1997. At December 31, 1997, total Harken proved reserves were 18,638,000 barrels of oil equivalent (''BOE''). As of September 30, 1998, Harken estimates that its total proved reserves are 44,543,000 BOE.
Colombian proved reserves have increased from 8,864,000 BOE at December 31, 1997 to 33,611,000 BOE at September 30, 1998. Overall, domestic U.S. proved reserve volumes increased 1,160,000 BOE since the prior year-end to a total of 10,932,000 BOE.
This significant increase in the Colombian proved reserves has been primarily the result of discoveries on the Bolivar block and the completion and interpretation of a 3-D seismic survey in the Alcaravan Palo Blanco field which indicated a substantially larger field size than was previously estimated. Domestic U.S. reserve volumes increased primarily as a result of the Louisiana Gulf Coast property acquisition in May of 1998.
Although total domestic U.S. oil and gas reserve volumes have increased, the Company took a non-cash write-down on its domestic U.S. properties of approximately $27.8 million primarily due to the protracted decline in U.S. oil and gas prices and other U.S. reserve volume revisions. This valuation allowance will have no impact on operations, cash flow or working capital of the Company, which remain strong with working capital in excess of $158 million. Earnings, before the valuation allowance, for the nine months and third quarter ended September 30, 1998 were $590,000 and $262,000, respectively. Results are as follows (in 000's, except for per share and weighted share amounts):
Nine Months Third Quarter
Operations: 1998 1997 1998 1997
Total revenues $15,012 $13,278 $5,754 $5,000
Earnings before interest,
taxes, depreciation and
amortization (EBITDA) 5,052 5,199 2,046 1,907
Earnings before valuation
allowance 590 152 262 38
Non-cash valuation
allowance (27,787) --- (27,787) ---
Net income (loss) (27,197) 152 (27,525) 38
Share Data:
Net income (loss) per
common share ($0.22) $0.00 ($0.22) $0.00
Basic weighted average
common shares
outstanding 126,394,977 105,457,706 133,218,144 114,640,028
Summary of Financial Condition:
September 30, December 31,
1998 1997
Working Capital $158,462 $110,640
Stockholders' Equity $202,674 $157,881
Total Assets $331,019 $238,513
Mikel D. Faulkner, Harken's Chairman stated that, ''the continued increase in reserve values for Colombia continues to confirm our Colombian exploration strategy. The asset valuation allowance on the U.S. properties has no operational impact on the Company.''
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 Form 10-K for the year ended December 31, 1997. Actual results may vary materially.
SOURCE: Harken Energy Corporation
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More Quotes and News: Harken Energy Corp (AMEX:HEC - news)
Related News Categories: earnings, oil/energy
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No wonder the volume and price of PKC has been active and rising from the low of $.18
The increase in reserves is astonishing, and PKC has the option to position itself nicely for participation, or they can sell the participation to the highest bidder, or they can take HEC stock in lou of, either way this one is a no brainer, a sleeper, a ten bagger.
Regards,
KMT |
