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

To: Don Crespino who wrote (4232)	2/23/1999 3:25:00 PM
From: R F B, Jr.	Read Replies (3) \| Respond to of 5504

Don : Spoke to Larry Cummings at HEC today : He explained that the amount paid to RGC would have been the same if they paid in $ or with stock so they chose to pay with stock to get rid of RGC altogether. He said the calculations of the payoff were formula driven and that the holder had the advantage as they picked the pricing days over a two week period. IMO Harken learned alot about RGC which had they known before they may not have entered into such an agreement. Don't think that HEC was that bad off that they had to get RGC's $15mm with this type of deal. Anyway, we all know that it cost them $10mm. A very expensive lesson. When asked, Mr. Cummings said the pipe lines were progressing and that within a two week period we should be hearing something in the form of a press release. Palo Blanco's pipe line is almost finished and all that remains is tying in to the main pipe line. In addition, the location of Islero was chosen by HEC and not the Colombian Gov't as had been suggested in another post on this thread some time ago. They thought they made the best choice but as it turns out they simply miscaculated the depth of the oil. Another expensive lesson.] Here's hoping both lessons were learned well and that the lessons learned of the Cambulos terrain will pay off at a later date. Regards, RFB