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

To: Craig Lawler who wrote (3821)	12/11/1998 1:23:00 AM
From: Jeff	Respond to of 5504

I was looking through old press releases and believe have found an answer as to why HEC is spending so much time and money trying to bring in this this 1st Cambulous well. It's not their money...DALLAS, Oct. 20 /PRNewswire/ -- Harken Energy Corporation (Amex: HEC) ("Harken"), announced today the completion of a sale of a 5% contractual net profits interest in its previously announced Colombian three well program for exploratory drilling in the Middle Magdalena Basin. EnCap Investments L.C. of Houston, Texas through its EnCap Energy Capital Fund III acquired this 5% interest for $25 million cash. EnCap has a 10-year history of financial involvement in the energy industry including the management and placement of over $3 billion in energy investments. The funds utilized in the purchase of this 5% interest were drawn from EnCap's recently closed $480 million Energy Capital Fund, consisting of 50 U.S. and European institutional investors. This three well exploratory program contemplates the drilling of one prospect on Harken's Bocachico contract acreage and the drilling of two prospects on the Cambulos contract acreage. The acreage currently identified for these three prospects approximates 20,000 acres out of the 500,000 acres held by Harken under these two association contracts in the Middle Magdalena Basin. Harken's Chairman, Mikel D. Faulkner, stated, "We intend to retain at least a 90% ownership interest in this program in order to maximize the benefit to our shareholders should this exploration be successful. Unless costs increase or our plans change, the $25 million from this sale of a 5% interest should provide the majority of the funds that will be required for this three well program." Faulkner continued, "I am particularly pleased that we were able to structure this agreement in such a way that under certain future circumstances either party, EnCap or Harken, can exchange this interest for equity in Harken at a future market price or cash at Harken's election."