Harken's Global Energy Subsidiary Signs Exploration and Production Contract for 75,000 Additional Acres in Colombia
September 15 2004 - 6:30AM
PR Newswire (US)
Harken's Global Energy Subsidiary Signs Exploration and Production
Contract for 75,000 Additional Acres in Colombia Contract Includes
Two Existing Wells; Recompletions Will Be Initiated Before Year-End
DALLAS, Sept. 15 /PRNewswire-FirstCall/ -- Harken Energy
Corporation (AMEX:HEC) today reported that its 85.62% owned
subsidiary, Global Energy Development PLC, ("Global") has signed an
Exploration and Production Contract with the National Hydrocarbons
Agency of the Republic of Colombia for the Rio Verde area, located
in the central Llanos region. The contract assigns Global exclusive
exploration and production rights to 75,000 acres located
approximately 40 kilometers north of Global's Palo Blanco complex.
Global will own 100% of the contract subject only to an additional
10.5% percent royalty, this payment being divided between the
Colombian Ministry of Energy and others. The size of the royalty
payable to the Colombian Ministry of Energy is determined by future
production levels. The contract duration is approximately six years
for the exploration phase and 24 years for the exploitation phase.
Terms of the contract require Global during Phase 1 to equip for
production two existing wells located on the Rio Verde acreage, the
Tilodiran #1 and the Macarenas #1. These wells, drilled in 1986 and
1993 respectively, tested productive. The Tilodiran #1 was drill
stem tested at a rate of 258 barrels in five hours of 18 degree to
23 degree API gravity oil. The Macarenas #1 was drill stem tested
at a rate of 320 barrels per day of 33 degree API gravity oil. Also
during Phase 1 of the contract, Global is required to reprocess 300
kilometers of existing seismic and acquire 50 kilometers of new 2D
seismic. The time period for Phase 1 is 20 months. If Global elects
to enter Phase 2 of the contract, the company must drill one
exploration well and acquire a further 25 kilometers of 2D seismic.
Phases 3, 4 and 5, also optional, require one exploratory well to
be drilled per phase. Phases 2, 3, 4 and 5 have a time period of 12
months each. Commenting on the Rio Verde contract, Stephen C. Voss,
Managing Director for Global Energy Development PLC, said, "We are
very pleased that Global is one of the first companies to sign a
new contract with the newly formed state-owned National
Hydrocarbons Agency. This new contract provides the company with
further reserves, near-term production growth opportunities and
significant upside exploration potential in an area in which we
have many years of operating experience. "The recompletions of the
Tilodiran #1 and the Macarenas #1 are of special interest and will
be the focus of our initial efforts during the remainder of 2004.
We hope to install subsurface pumps and surface processing
equipment for both wells and bring them on production as soon as
operationally possible. In addition, we are excited about
additional development around the Tilodiran #1 and Macarenas #1
wells and the exploration opportunities located on the remaining
Rio Verde contract acreage." Harken Energy Corporation is engaged
in oil and gas exploration, development and production operations
both domestically and internationally through its various
subsidiaries. Additional information may be found at the Harken
Energy Web site, http://www.harkenenergy.com/, or by calling Bevo
Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
This announcement may contain forward-looking statements as defined
by the Securities and Exchange Commission. Harken, however,
believes that it is important to provide this operations update and
communicate its future expectations to its stockholders. The
forward-looking statements in this announcement reflect the current
view of management with regard to future events and are subject to
numerous known and unknown risks, uncertainties and other factors
that may cause the actual results, performance, timing or
achievements of Harken to be materially different from any results,
performance, timing or achievements expressed or implied by such
forward- looking statements. These risks, uncertainties and other
factors include, among others, the risks described in Harken's
filings with the Securities and Exchange Commission including the
Annual Report on Form 10-K for the fiscal year ended December 31,
2003 filed on March 26, 2004 and its Form 10-Q for the quarter
ended March 31, 2004 filed on May 14, 2004. Statements regarding
future production are subject to all of the risk and uncertainties
normally associated with exploration, development and production of
oil and gas. These risks include, without limitation, variability
in the price received for oil and gas production, lack of
availability of oil field goods and services, environmental risks,
drilling and production risk, risk related to offshore operations,
and regulatory changes. Investors are cautioned that any such
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
in the forward-looking statements. Although Harken believes that
the expectations reflected in the forward-looking statements of
this announcement are reasonable, it can give no assurance that
such expectations will prove to be correct or that unforeseen
developments will not occur. Harken undertakes no duty to update or
revise any forward-looking statements. DATASOURCE: Harken Energy
Corporation CONTACT: Bevo Beaven, Vice President, , or Bill Conboy,
Senior Account Executive, , both of CTA Public Relations,
+1-303-665-4200, for Harken Energy Corporation Web site:
http://www.harkenenergy.com/
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