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

To: Robert Sanders who wrote (4175)	2/11/1999 2:17:00 PM
From: art slott	Read Replies (1) \| Respond to of 5504

With all the hindsight and conpiracy theories floating around I think Hec management may be feeling some empathy for the President.

To: Robert Sanders who wrote (4175)	2/11/1999 3:16:00 PM
From: Rod Copeland	Respond to of 5504

Bob, Just a comment about producing or holding reserves. I have a lease that is capable of producing 90 bopd (two wells). I am struggling to pay my bills due to the low price of oil. This lease is economical to produce (shows a profit). I know there remains only 60,000 barrels to produce. Do I produce it now at $10 per barrel, or do I wait until oil recovers to $15 or $20? The answer lies in how badly I need the cash flow. Due to my circumstances I am producing one well and leaving the other shut in. It is driving me nuts to sell the crude at these prices, but I have to eat and pay some of my bills. I believe that in a year, I will be kicking myself for selling it when I could have received 50% more. Is Harken in this position? I don't think so. I wouldn't be in a big hurry to sell the crude, unless there was a pressing need. So maybe that is what they are thinking too. Maybe they will tell us something to that effect soon. It is so hard to plan or budget when the price of your principle commodity is unknown. Sometimes it pays to hedge in conservatism. Of course, it couldn't hurt to tell us shareholders if that is the consensus of management. These are trying times.