Global
Energy Development PLC Mobilizes Rig for First Exploratory Well
on Rio Verde Contract in Colombia
Dallas, Texas -
December 7, 2005 - HKN, Inc.
(AMEX: HEC), announced today that Global Energy Development
PLC, ("Global") has commenced rig mobilization
to the Tilodiran #2 exploratory well within its exclusive
Rio Verde Exploration and Production Concession Contract (the
"Contract") in Colombia. Harken Energy holds 11,892,922
ordinary shares in Global, representing approximately 34%
of Global's issued share capital.
The Contract, which Global
owns 100% of and is subject only to an initial 10.5% royalty,
covers approximately 75,000 acres in the central Llanos region
and currently contains two producing wells, Tilodiran #1 and
Macarenas #1, which were successfully recompleted and brought
onto production in late 2004 and early 2005 respectively.
Cumulative gross production from these two wells has since
been over 87,000 barrels of oil.
The rig mobilization to Tilodiran
#2 at this time represents an acceleration of the work program
required under the terms of the Contract which specifies that
Global must drill the first exploratory well during phase
two which commences in May 2006.
Global has acquired and processed
56 kilometers of new 2D seismic within the Contract area during
2005 and reprocessed 300 kilometers of existing seismic in
order to select optimum drilling locations. Tilodiran
#2 is located approximately 2,200 feet northeast from and
in a geologically favorable position updip to Tilodiran #1.
Global expects to spud Tilodiran #2 in mid to late December
2005.
HKN, Inc.
is engaged in oil and gas exploration, development and production
operations both domestically and internationally through its
various subsidiaries and shareholdings. Additional information
may be found at the Harken Energy Web site, www.harkenenergy.com,
or by calling Bevo Beaven or Bill Conboy at CTA Public Relations
at (303) 665-4200.
Certain statements in this announcement including statements
such as "believes", "anticipates",
"expects" and all similar statements regarding
future expectations, objectives, intentions and plans for
oil and gas exploration, development and production may be
regarded as "forward-looking statements"
within the meaning of the Securities Exchange Act of 1934,
as amended. Forward-looking statements are based on
the opinions and estimates of management at the time the statements
are made. Management's current view and
plans, however, 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. The various uncertainties, variables, and
other risks include those discussed in detail in the Company's
SEC filings, including the Annual Report on Form 10-K/A, as
amended, for the year ended December 31, 2004 and its Quarterly
Report on Form 10-Q, as amended, for the period ended September
30, 2005. Harken undertakes no duty to update or revise
any forward-looking statements. Actual results may vary
materially.
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Harken Energy Subsidiary Enters
into Third Coalbed Methane Exploration and Development Agreement
Dallas, Texas
- November 29, 2005 -
HKN, Inc.'s (AMEX: HEC) wholly owned
subsidiary, Gulf Energy Management Company ("GEM"),
has entered into a new agreement for the joint exploration
and development of coalbed methane (CBM) acreage located in
Ohio.
The agreement between GEM
and Ohio Triangle, L.P. was effective on November 21, 2005,
and calls for GEM to purchase a 65% non-operating working
interest in CBM acreage located in Ohio. GEM's
current plans are to drill three core holes commencing by
the end of the first quarter 2006 in Phase I. Based
on favorable results in Phase I, GEM has the option to purchase
approximately 20,000 acres of coal rights and initiate a Pilot
Program in Phase II. Following a review of Phase II
results, GEM has the option to begin a development program
during which GEM would provide 100% funding up to total expenditures
of $7.5 million.
"This new CBM acreage
in Ohio is an excellent strategic fit for our growing portfolio
of CBM acreage and is consistent with our goal of building
stable production and adding reserves to our asset base,"
said Jim Denny, Chief Executive Officer and President of Gulf
Energy Management Company.
Updating the status of GEM's
existing CBM agreements, GEM and its partner, Ute Energy,
completed drilling of three core holes on its Ohio CBM prospect
area and four core holes on its Indiana CBM prospect area
during the third and fourth quarter of 2005. Based on
the results, GEM has elected to fund Phase II of the CBM agreement
in Indiana and plans to drill its first pilot wells during
the first quarter of 2006. Core samples from the Ohio CBM
prospect are in the process of being analyzed. Depending
on final results, GEM may elect to schedule drilling of pilot
wells on its Ohio CBM prospect area during 2006.
"With the initial results
of the core samples from our Indiana prospect now in, we believe
the gas content and economics are sufficient to begin moving
ahead with our first group of five pilot wells in Indiana,"
Denny commented. "Once these wells are in place and
dewatered, we will have our first look at the production and
the upside potential of this prospect."
HKN, Inc.
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, www.harkenenergy.com,
or by calling Bevo Beaven or Bill Conboy at CTA Public Relations
at (303) 665-4200.
Certain statements in this announcement including statements
such as "believes", "anticipates",
"expects" and all similar statements regarding
future expectations, objectives, intentions and plans for
oil and gas exploration, development and production may be
regarded as "forward-looking statements"
within the meaning of the Securities Exchange Act of 1934,
as amended. Forward-looking statements are based on
the opinions and estimates of management at the time the statements
are made. Management's current view and
plans, however, 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. The various uncertainties, variables, and
other risks include those discussed in detail in the Company's
SEC filings, including the Annual Report on Form 10-K/A, as
amended, for the year ended December 31, 2004 and its Quarterly
Report on Form 10-Q, as amended, for the period ended September
30, 2005. Harken undertakes no duty to update or revise
any forward-looking statements. Actual results may vary
materially.
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Harken Energy's Subsidiary, Global
Energy Development PLC, Receives New Contract Approval in
Colombia
369,000-acre
Luna Llena Contract within Valle Lunar acreage
Dallas,
Texas - November 23, 2005 - HKN, Inc.
(AMEX: HEC), announced today that Global Energy Development
PLC (‘Global') has received approval for a new
exclusive exploration and production concession contract with
the National Hydrocarbons Agency of the Republic of Colombia
following electing to convert a portion of its Valle Lunar
acreage held under a Technical Evaluation Agreement ("TEA").
Harken Energy currently holds approximately 34% of Global's
issued share capital.
The new Luna Llena Contract, one of six contracts Global now
holds in Colombia, covers 369,000 acres within the approximate
2.1 million acre Valle Lunar TEA, which is located in the
established Llanos Basin of eastern Colombia. The Valle Lunar
TEA, signed on May 2005, grants Global the exclusive option
to convert any of the acreage into a contract or contracts
prior to or at the TEA's conclusion in October 2006.
"The early conversion of the Luna Llena Contract reflects
Global's desire to accelerate its work program on this
selected area due to management's belief that the opportunity
to develop substantial medium heavy oil reserve potential
is significant," said Stephen Voss, Global's Managing
Director.
"Two international oil companies drilled a number of
shallow wells in the 1980s within Luna Llena to a depth of
approximately 3,000 feet which delineated what is now known
to be the El Miedo field. Oil production tests were successful
but the opportunity was deemed non-commercial at the time
due to low oil prices," said Voss.
Since Global signed the Valle Lunar TEA, the company has conducted
Landsat analysis of the acreage, which yielded a considerable
amount of surface data, particularly within the Luna Llena
area, that can be utilized in subsurface interpretation. In
addition, the Luna Llena acreage contains the identified El
Miedo field. The El Miedo field has substantial well tests
and subsurface geologic control that was acquired by two international
oil companies in the 1980s from an extensive drilling effort
conducted by these oil companies. Oil production tests were
successful at that time. Global has already completed engineering
and geologic studies on the El Miedo field.
Global will own 100% of the Luna Llena Contract subject only
to an initial 8% royalty, with the size of the royalty to
be determined by future production levels. The Contract duration
is 30 years divided into an initial six-year exploration phase
and a 24 year exploitation and production phase. Under the
terms of the Luna Llena Contract, Global must, within 18 months,
acquire 165 kilometers of 2D seismic, reprocess 500 kilometers
of existing seismic, re-enter and test one existing well and
drill two exploratory wells which cover the total geologic
column. Global can then elect, if it so wishes, to proceed
to phase two which also covers 18 months and requires re-entering
another existing well or drilling another exploratory well.
Phases three to five, all optional, are each 12 months and
require the drilling of an exploratory well in each phase.
Global will continue to hold the remaining Valle Lunar TEA
acreage and conduct further geologic analysis and geophysical
tests over the next several months, fulfilling all the associated
work obligations, with a goal of potentially contracting more
of the acreage. Global is finalizing its plans for new drilling
in the El Miedo field in the second half of 2006.
HKN, Inc. is engaged in oil and gas exploration,
development and production operations both domestically and
internationally through its various subsidiaries and shareholdings.
Additional information may be found at the Harken Energy Web
site, www.harkenenergy.com, or by calling Bevo Beaven or Bill
Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements
such as "believes", "anticipates",
"expects" and all similar statements regarding
future expectations, objectives, intentions and plans for
oil and gas exploration, development and production may be
regarded as "forward-looking statements" within
the meaning of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on the opinions and estimates
of management at the time the statements are made. Management's
current view and plans, however, 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. The various uncertainties, variables, and other
risks include those discussed in detail in the Company's
SEC filings, including the Annual Report on Form 10-K/A, as
amended, for the year ended December 31, 2004 and its Quarterly
Report on Form 10-Q for the period ended September 30, 2005.
Harken undertakes no duty to update or revise any forward-looking
statements. Actual results may vary materially.
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Harken Energy Reports Third Quarter
2005 Net Income of $32.8 Million
Third Quarter Revenues Increase 39%, Operating Margin Increases 21%
Dallas - Texas - November 9, 2005 - HKN, Inc. (AMEX: HEC) is pleased to report Net Income of $32.8 million, or $0.15 per share, for its third quarter ended September 30, 2005. Total revenues in the third quarter of 2005 increased to $11.6 million, an increase of 39% over the third quarter of 2004, due to a continued increase in international production and higher oil and gas prices. Non-GAAP Operating Margin increased to $5.5 million in the third quarter of 2005, representing 21% growth over the same period in the prior year.
Global Stock Sales, Global Warrant Liability Extinguished, Conversion of Convertible Notes
During the three months ended September 30, 2005, Harken sold a portion of its equity interest in Global Energy Development PLC (Global). With the sales of these shares (along with the exercise of Global warrants and share options), Harken's equity interest in Global was approximately 34% at September 30, 2005. Harken recognized gains totaling $11.9 million equal to the amount by which the total sale proceeds exceeded the net book value of its Global shares sold. Harken does not anticipate recognizing similar gains in the future.
The global warrant liability on Harken's balance sheet was extinguished with the exercise of all outstanding Global Minority Owner warrants and the exercise of the Global Warrants held by Lyford Investments Enterprises. Harken recognized a gain of $28 million representing the difference between the cash proceeds received plus the fair value of the Global Warrant liability extinguished and the net book value of Harken's shares in Global sold as of the date of exercise. Harken does not anticipate recognizing similar gains in the future.
Share-based liability related to Global's stock option plan increased due primarily to the increase in Global's common share price along with the continued vesting of Global's outstanding options. During the third quarter of 2005, Global recorded share-based compensation expense of approximately $6.9 million associated with the increased common share price and vesting.
Holders of $3.325 million of 5% Convertible Notes voluntarily converted the debt into approximately 6.5 million shares of Harken common stock, during the three months ended September 30, 2005. The conversion had no effect on profit and loss.
Redemption of Preferred Shares
Harken redeemed all of the outstanding 50,000 shares of Series J Preferred in exchange for $5.0 million in cash, and recorded a non-cash accounting loss to preferred holders of approximately $225,000 related to this transaction.
The Company redeemed 11,825 shares of Series G1 Preferred in exchange for $65,000 in cash. Only 1,600 shares of Series G1 Preferred remain outstanding. Harken recorded a non-cash accounting gain from preferred holders of approximately $489,000.
Harken redeemed 1,000 shares of Series G2 Preferred in exchange for $24,000 in cash. Only 1,000 shares of Series G2 Preferred remain outstanding. A small non-cash accounting gain from preferred holders of approximately $53,000 was recorded.
The Company redeemed 67,715 shares of Series G4 Preferred in exchange for $3.7 million in cash. The Series G4 Preferred is no longer outstanding. Harken recorded a non-cash accounting loss from preferred holders of approximately $204,000.
Operating Summary
Gulf Energy Management Company (GEM)
During the quarter ended September 30, 2005, GEM's Louisiana operations were affected by one tropical storm and two hurricanes that interrupted both production and certain drilling operations. As much as 75% of GEM's domestic production was shut in during September and approximately 40% of its pre-storm production level remains curtailed. GEM continues to inspect and repair damage to its eastern Gulf operations that remain shut-in which include Main Pass, Point a la Hache and non-operated properties at Branville Bay, Backridge, Port Arthur (TX) and Abbeyville. Restoration of remaining curtailed production is also dependent on resumption of downstream infrastructure and the availability of service and equipment contractors necessary for over-water transportation and repairs. As of September 30, 2005, GEM properties were producing at approximately 4.4 million cubic feet equivalent per day.
During the quarter ended September 30, 2005, GEM's oil and gas revenues decreased 11% to approximately $4.1 million compared to $4.7 million for the prior year period primarily due to the decrease in sales and production volumes in the third quarter of 2005 as compared to the prior year period. The company reported accelerated declines in certain field productivity in the Raymondville field as well as lost production due to hurricane Katrina and Rita. The decrease in sales volume was partially mitigated by an increase in average oil and gas commodity prices received, as compared to the prior year third quarter.
GEM's oil and gas operating expense increased 25% to approximately $1.5 million during the third quarter of 2005 compared to approximately $1.2 million during the third quarter 2004 primarily due to property insurance deductibles and other related items for the repair and restoration of damages from Hurricanes Katrina and Rita.
Regarding GEM's Indiana Posey Coalbed Methane Prospect, in September 2005, after the submission of a Phase I core evaluation report, GEM has elected to proceed and fund pilot well drilling under Phase II of the agreement. On GEM's Ohio Cumberland Coalbed Methane Prospect, the coring phase is continuing and expected to be completed in the fourth quarter of 2005. In addition, GEM is actively evaluating other strategic coalbed methane opportunities in pursuit of long-lived reserve prospects to compliment our current oil and gas portfolio.
Global Energy Development PLC (Global)
During the third quarter 2005 as compared to the third quarter 2004, Global reported increased oil revenues, operating expenses and oil volumes. Global's oil revenues increased to approximately $6.6 million during third quarter 2005 as compared to $3.5 million in the third quarter 2004. Oil sales volumes increased 34% to approximately 134,000 net barrels (after royalties and Cajaro's working interest allocation) during the three months ended September 30, 2005 from approximately 100,000 net barrels during the third quarter of 2004. Increased oil sales volumes were a result of improved well performance and successful workovers. Global's average oil commodity prices increased 39% to $49.33 during the third quarter 2005 compared to $35.48 during the third quarter 2004.
Global's operating expenses have increased 135% from approximately $671,000 for third quarter 2004 to approximately $1.6 million for third quarter 2005, primarily due to equipment rentals and diesel fuel costs and workovers due to increased production volumes from certain wells in the second quarter of 2005. These wells include the Tilodiran, the Macarenas, and the Estero #4 and Estero #5 wells. Diesel fuel costs have risen with the increase in price of crude oil.
International Business Associates (IBA)
IBA incurred net trading gains of approximately $536,000 for the quarter ended September 30, 2005. IBA's net loss for the same period was approximately $116,000. During the period ended September 30, 2005, IBA has had a low volume of trading activities and has been unsuccessful in obtaining trading contract overseas. Harken is currently pursuing strategic alternatives regarding its investment in IBA.
Balance Sheet Summary
As the ratios below show, Harken has improved its Working Capital by over 100% since year-end 2004 to approximately $45.9 million at September 30, 2005. Harken reduced its debt by 77.6% during the nine months ended September 30, 2005, ending the period with over $46.8 million in cash less debt as detailed below:
(1) Current ratio is calculated as current assets divided by current liabilities
(2) Working capital is the difference between current assets and current liabilities
* Derived from audited financial statements
NON-GAAP FINANCIAL MEASURE
Reconciliation of Operating Margin to Net Income (loss)
Management believes the presentation of this non-GAAP financial measure, in connection with the results for the three and nine months ended September 30, 2005 and 2004, provides useful information to investors regarding the Company's results of operations. Management also believes that this non-GAAP financial measure provides a picture of Harken's results that is comparable among reporting periods and provides factors that influenced performance during the period under the report. This non-GAAP financial measure should be considered in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.
HKN, Inc. 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, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, 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. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q for the period ended June 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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Global Energy Development
PLC Raises $12.5 Million through Issuance of Convertible Notes
Notes to provide funding
for rig contracting and acreage acquisition
Dallas, Texas
- November 1, 2005 -
HKN, Inc. (AMEX: HEC), announced today that Global
Energy Development PLC, (‘Global') has raised
$12.5 million through the issue of unsecured variable coupon
convertible notes due October 30, 2012 ("Notes")
to a Swiss-based fund manager. Harken Energy currently holds
11,892,922 ordinary shares, representing approximately 34%
of Global's issued share capital.
The Notes have an annual coupon of 5% for the first three
years, 6% from October 2008 to October 2010, and 7% thereafter,
payable quarterly in arrears. The Notes are convertible into
ordinary shares of Global at 305.8 pence per ordinary share,
representing a 10% premium to the closing market price on
October 28, 2005, the last trading day before delivery of
the Notes.
"Global has increased its acreage position and prospects
over the past year and we expect to further supplement our
current 5.1 million acres over the coming months," said
Stephen Voss, Global's Managing Director. "We
expect to accelerate the drilling programs associated with
a number exploratory projects in our portfolio. This financing
also provides Global with additional funds to dedicate towards
rig contracting allowing greater visibility over drilling
schedules and for general corporate purposes as we move forward."
HKN, Inc. is engaged in oil and gas exploration,
development and production operations both domestically and
internationally through its various subsidiaries and shareholdings.
Additional information may be found at the Harken Energy Web
site, www.harkenenergy.com, or by calling Bevo Beaven or Bill
Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements
such as "believes", "anticipates",
"expects" and all similar statements regarding
future expectations, objectives, intentions and plans for
oil and gas exploration, development and production may be
regarded as "forward-looking statements" within
the meaning of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on the opinions and estimates
of management at the time the statements are made. Management's
current view and plans, however, 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. The various uncertainties, variables, and other
risks include those discussed in detail in the Company's
SEC filings, including the Annual Report on Form 10-K/A, as
amended, for the year ended December 31, 2004 and its Quarterly
Report on Form 10-Q for the period ended June 30, 2005. Harken
undertakes no duty to update or revise any forward-looking
statements. Actual results may vary materially.
The information contained in this announcement is not an offer
of securities for sale or a solicitation of an offer to purchase
securities in the United States. The securities have not been,
nor will they be, registered under the United States Securities
Act of 1933, as amended (the "Securities Act"),
or with any securities regulatory authority of any state or
other jurisdiction of the United States and may not be offered,
sold or delivered within the United States or to US persons
(as defined in Regulation S) except pursuant to an exemption
from, or in a transaction not subject to, the registration
requirements of the Securities Act and applicable state securities
laws.
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Global Energy Development
PLC - Los Hatos #1 Positive Test Results
New
well provides extension to established Palo Blanco field
Dallas,
Texas - October 27, 2005 - HKN, Inc.
(AMEX: HEC), announced today that Global Energy Development
PLC, (‘Global') has had positive test results
from its Los Hatos #1 well and expects to place it on continuous
production within seven days. The Los Hatos #1 well is located
within Global's exclusive 85,000-acre Los Hatos Exploration
and Production Concession Contract in Colombia. Harken Energy
currently holds 11,892,922 ordinary shares, representing approximately
34% of Global's issued share capital.
The Los Hatos #1 well perforated and tested the Mirador formation
at a maximum rate of 700 metric cubic feet of natural gas
per day and 408 barrels of oil per day of 36 degree API gravity
oil with BS&W (basic sediment and water) of only 3%. Global
owns 100% working interest in the Los Hatos Contract, subject
only to an initial 8% royalty, with the size of the royalty
to be determined by future production levels. The placing
of Los Hatos #1 on production will mean Global has production
from five different contracts in Colombia in addition to holding
high-potential exploration acreage positions in Colombia,
Peru and Panama.
"The success of the Los Hatos #1 well has effectively
extended the established, producing Palo Blanco field further
to the south," said Stephen Voss, Global's Managing
Director. "Finding and producing oil in the Mirador
formation is especially encouraging as this formation is producing
commercial hydrocarbons from Estero #2, the most northerly
well within the Palo Blanco field, and now Los Hatos #1, the
southerly extension of the Palo Blanco field. We will promptly
undertake additional geologic and engineering analysis to
assess the potential additional Mirador reserves throughout
both the Los Hatos and Alcaravan contracts. "
HKN, Inc. is engaged in oil and gas exploration,
development and production operations both domestically and
internationally through its various subsidiaries and shareholdings.
Additional information may be found at the Harken Energy Web
site, www.harkenenergy.com, or by calling Bevo Beaven or Bill
Conboy at CTA Public Relations at (303) 665-4200.
Certain statements in this announcement including statements
such as "believes", "anticipates",
"expects" and all similar statements regarding
future expectations, objectives, intentions and plans for
oil and gas exploration, development and production may be
regarded as "forward-looking statements" within
the meaning of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on the opinions and estimates
of management at the time the statements are made. Management's
current view and plans, however, 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. The various uncertainties, variables, and other
risks include those discussed in detail in the Company's
SEC filings, including the Annual Report on Form 10-K/A, as
amended, for the year ended December 31, 2004 and its Quarterly
Report on Form 10-Q for the period ended June 30, 2005. Harken
undertakes no duty to update or revise any forward-looking
statements. Actual results may vary materially.
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HKN, Inc. Announces 10 Million Share Stock Repurchase Plan
Dallas, TX
- September 22, 2005 - HKN, Inc. (AMEX:
HEC) announced that its Board of Directors has authorized
a new stock repurchase program allowing the Company to buy
back up to 10 million shares of its common stock. All repurchases
will be made from time to time in the open market when opportunities
to do so at favorable prices present themselves in compliance
with all applicable laws and regulations, including the Securities
and Exchange Commission rules.
HKN, Inc. 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, www.harkenenergy.com,
or by calling Bevo Beaven or Bill Conboy at CTA Public Relations
at (303) 665-4200.
Certain statements in this announcement including statements
such as "believes", "anticipates",
"expects" and all similar statements regarding
future expectations, objectives, intentions and plans for
oil and gas exploration, development and production may be
regarded as "forward-looking statements" within
the meaning of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on the opinions and estimates
of management at the time the statements are made. Management's
current view and plans, however, 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. The various uncertainties, variables, and other
risks include those discussed in detail in the Company's
SEC filings, including the Annual Report on Form 10-K/A, as
amended, for the year ended December 31, 2004 and its Quarterly
Report on Form 10-Q for the period ended June 30, 2005. Harken
undertakes no duty to update or revise any forward-looking
statements. Actual results may vary materially.
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Harken Energy Gives Notice
Of Conversion Of Convertible Notes
Dallas, TX -
September 21, 2005 - HKN, Inc. (AMEX:
HEC) today announced that it has given notice of its determination
to exercise its rights to convert its 5% Senior Convertible
Notes, due June 30, 2009 (the "5% Notes") for
shares of Harken common stock. Pursuant to the terms of the
5% Notes, Harken has designated November 4, 2005 as the mandatory
conversion date.
On November 4, 2005, the conversion date, each 5% Note that
is outstanding as of that date will be converted to shares
of Harken Energy common stock equal to the principal amount
of the 5% Notes to be converted, plus accrued and unpaid interest
thereon through the mandatory conversion date, divided by
the appropriate conversion price set by the 5% Notes. Currently,
there is approximately $3.8 million principal amount of 5%
Notes outstanding, which would result in an issuance of up
to approximately 7.5 million shares of common stock upon mandatory
conversion.
HKN, Inc. 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, www.harkenenergy.com,
or by calling Bevo Beaven or Bill Conboy at CTA Public Relations
at (303) 665-4200.
Certain statements in this announcement regarding future
expectations, objectives, intentions and plans for future
actions, oil and gas exploration, development and production
may be regarded as "forward-looking statements"
within the meaning of the Securities Exchange Act of 1934,
as amended. Forward-looking statements are based on the opinions
and estimates of management at the time the statements are
made. Management's current view and plans, however,
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. The various
uncertainties, variables, and other risks include those discussed
in detail in the Company's SEC filings, including the
Annual Report on Form 10-K/A, as amended, for the year ended
December 31, 2004 and its Quarterly Report on Form 10-Q for
the period ended June 30, 2005. Harken undertakes no duty
to update or revise any forward-looking statements. Actual
results may vary materially.
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Harken Energy Raises $6.3 Million from Lyford
Warrant Exercise
DALLAS,
TX - September 16, 2005 -HKN, Inc.
(AMEX: HEC) announced today that Lyford Investment Enterprises,
Ltd ("Lyford") exercised warrants to purchase
7,000,000 Global Energy Development, PLC ("Global")
ordinary shares held by Harken. The transaction raised approximately
$6.3 million in new capital for Harken Energy.
As a result of the exercise of warrants, Harken now holds
11,975,641 ordinary shares, representing 34.09% of the Global's
issued share capital, and Lyford holds 7,000,000 ordinary
shares, representing 19.93% of the Global's issued share
capital. There are no further warrants outstanding with respect
to Global's ordinary shares.
HKN, Inc. 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, www.harkenenergy.com,
or by calling Bevo Beaven or Bill Conboy at CTA Public Relations
at (303) 665-4200.
Certain statements in this announcement including statements
such as "believes", "anticipates",
"expects" and all similar statements regarding
future expectations, objectives, intentions and plans for
oil and gas exploration, development and production may be
regarded as "forward-looking statements" within
the meaning of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on the opinions and estimates
of management at the time the statements are made. Management's
current view and plans, however, 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. The various uncertainties, variables, and other
risks include those discussed in detail in the Company's
SEC filings, including the Annual Report on Form 10-K/A, as
amended, for the year ended December 31, 2004 and its Quarterly
Report on Form 10-Q for the period ended June 30, 2005. Harken
undertakes no duty to update or revise any forward-looking
statements. Actual results may vary materially.
###
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Harken
Energy Raises $14.1 Million Through Sale of Global Energy
Shares
DALLAS,
TX - September 12, 2005 - HKN, Inc.
(AMEX: HEC) negotiated and closed the sale of 2,829,501 shares
from its existing holdings in Global Energy Development PLC,
raising approximately $14.1 million in new capital for Harken
Energy.
Regarding the Global Energy Development shares sold, 1,749,501
were conducted through a private sale at market prices to
FMR Corporation and Fidelity International Ltd. and/or one
or more of their respective direct and indirect subsidiaries.
The remaining balance of 1,080,000 shares were sold in open
market transactions at market prices. As a result of these
transactions, Harken Energy now holds 18,975,641 ordinary
shares, representing approximately 54% of Global Energy Development's
outstanding common shares.
HKN, Inc. 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, www.harkenenergy.com,
or by calling Bevo Beaven or Bill Conboy at CTA Public Relations
at (303) 665-4200.
Certain statements in this announcement including statements
such as "believes", "anticipates",
"expects" and all similar statements regarding
future expectations, objectives, intentions and plans for
oil and gas exploration, development and production may be
regarded as "forward-looking statements" within
the meaning of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on the opinions and estimates
of management at the time the statements are made. Management's
current view and plans, however, 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. The various uncertainties, variables, and other
risks include those discussed in detail in the Company's
SEC filings, including the Annual Report on Form 10-K/A, as
amended, for the year ended December 31, 2004 and its Quarterly
Report on Form 10-Q for the period ended June 30, 2005. Harken
undertakes no duty to update or revise any forward-looking
statements. Actual results may vary materially.
###
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Harken
Energy Provides Assessment of Impact from Hurricane Katrina
DALLAS,
TX - September 8, 2005-
HKN, Inc.'s
(AMEX: HEC) wholly owned subsidiary, Gulf Energy Management
Company ("GEM"), today reported the initial
assessment of Hurricane Katrina's impact on its domestic
oil and gas operations which are primarily located onshore
and offshore in the Gulf of Mexico.
In
preparation for the storm,
75% of GEM's domestic production was shut in
and all employees were safely evacuated.
GEM has begun start-up operations and as of today is
producing at approximately 55% of its pre-Katrina production
level.
GEM
continues to inspect and repair damage to its eastern Gulf
operations that remain shut in which include, Main Pass, Point
a la Hache, Branville Bay and Lapeyrouse. Restoration
of remaining curtailed production is also dependent on resumption
of downstream infrastructure and the availability of service
and equipment contractors necessary for over-water transportation
and repairs.
HKN, Inc. 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, www.harkenenergy.com,
or by calling Bevo Beaven or Bill Conboy at CTA Public Relations
at (303) 665-4200.
Certain
statements in this announcement including statements such as
"believes", "anticipates", "expects"
and all similar statements regarding future expectations, objectives,
intentions and plans for oil and gas exploration, development
and production may be regarded as
"forward-looking statements" within the meaning
of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on the opinions
and estimates of management at the time the statements are made.
Management's current view and plans, however, 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.
The various uncertainties, variables, and other risks
include those discussed in detail in the Company's SEC
filings, including the Annual Report on Form 10-K/A, as amended,
for the year ended December 31, 2004 and its Quarterly Report
on Form 10-Q for the period ended June 30, 2005.
Harken undertakes no duty to update or revise any forward-looking
statements. Actual
results may vary materially.
###
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Harken
Energy Completes Two Million Share Buyback of Common Stock
DALLAS,
TX—September
6, 2005—HKN, Inc. (AMEX:
HEC) announced
it has completed the buyback of two million shares of its
common stock. These shares were repurchased as part of the
stock repurchase plan previously announced in June of 2005.
HKN, Inc. 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, www.harkenenergy.com,
or by calling Bevo Beaven and Bill Conboy at
CTA Public Relations at (303) 665-4200.
Certain
statements in this announcement including statements such
as "believes", "anticipates", "expects"
and all similar statements regarding future expectations,
objectives, intentions and plans for oil and gas exploration,
development and production may be regarded as
"forward-looking statements" within the
meaning of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on the opinions
and estimates of management at the time the statements are
made. Management's
current view and plans, however, 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. The
various uncertainties, variables, and other risks include
those discussed in detail in the Company's SEC filings,
including the Annual Report on Form 10-K/A, as amended, for
the year ended December 31, 2004 and its Quarterly Report
on Form 10-Q for the period ended June 30, 2005.
Harken undertakes no duty to update or revise any forward-looking
statements. Actual
results may vary materially
###
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Global
Energy Mobilizes Rig to First Exploratory Well on Los Hatos
Contract in Colombia
Dallas,
Texas - August 17, 2005 - HKN, Inc.
(AMEX: HEC), announced today that Global Energy Development
PLC, (‘Global') commenced rig mobilization to
spud the first exploratory well, the Los Hatos #1, within
its exclusive 85,000 acre Los Hatos Exploration and Production
Concession Contract (the ‘Contract') in Colombia.
Harken currently holds approximately 62% of Global's
common shares.
The Contract, part of an approximate 5.1 million acre portfolio
currently held by Global in Colombia, Peru and Panama, is
located in the central Llanos region and is contiguous southwards
to Global's Alcaravan Association Contract which contains
the established, producing Palo Blanco Field.
The Los Hatos #1 exploratory well is up dip and approximately
300 meters from the Cajaro #1 well within the Palo Blanco
Field. The Cajaro #1 well has had cumulative production of
approximately 328,000 gross barrels of oil since it was placed
on to production in June 2003.
"Global expects to spud Los Hatos #1 by late August
2005 with the well equipped for production by early October
2005," said Stephen C. Voss, Global's Managing
Director. "Should the Los Hatos #1 well be successful,
it will increase the number of Contracts from which we are
currently producing to five."
Following the operations on Los Hatos # 1, Global expects
the rig to be mobilized sometime during the fourth quarter
to another exploratory well, Tilodiran #2, within the producing
Rio Verde Exploration and Production Concession contract.
HKN, Inc. 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, www.harkenenergy.com,
or by calling Bevo Beaven or Bill Conboy at CTA Public Relations
at (303) 665-4200.
Certain statements in this announcement including statements
such as "believes", "anticipates",
"expects" and all similar statements regarding
future expectations, objectives, intentions and plans for
oil and gas exploration, development and production may be
regarded as "forward-looking statements" within
the meaning of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on the opinions and estimates
of management at the time the statements are made. Management's
current view and plans, however, 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. The various uncertainties, variables, and other
risks include those discussed in detail in the Company's
SEC filings, including the Annual Report on Form 10-K/A, as
amended, for the year ended December 31, 2004 and its Quarterly
Report on Form 10-Q, as amended, for the period ended June
30, 2005. Harken undertakes no duty to update or revise any
forward-looking statements. Actual results may vary materially.
###
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Harken
Energy Provides Domestic Operations Update
Dallas,
Texas - August 16, 2005 - HKN, Inc.'s
(AMEX: HEC) wholly owned subsidiary, Gulf Energy Management
Company ("GEM"), released updated production figures
and well completion status for its domestic oil and gas operations,
which are located primarily along the onshore and offshore
Texas and Louisiana Gulf Coast. In addition during March 2005,
GEM acquired two new Coalbed Methane Prospects (CBM) located
in Indiana and Ohio, each covering approximately 400,000 acres.
As of June 30, 2005, GEM's net domestic production rate
was at approximately 7.3 million cubic feet equivalent of
natural gas per day. In addition, new production initiated
subsequent to June 30, 2005, related to two wells completed
during the second quarter has increased this rate to approximately
7.6 million cubic feet equivalent of natural gas per day as
of August 15, 2005. The following field data updates the status
of GEM's domestic operations through the end of June
2005.
Lapeyrouse Field, Terrebonne Parish - Louisiana
GEM continues to participate in an active field redevelopment
program that has included an interest in seven successful
wells in the Lapeyrouse field since the fourth quarter of
2003. GEM holds an average non-operated working interest of
8.2% in seven wells in this field. Although two workovers
attempted to remedy certain mechanical problems in the second
quarter 2005 were unsuccessful, two additional workovers and
one well deepening are scheduled in the field for the third
quarter 2005. An eighth well was completed and began producing
in May 2005. A ninth well was spudded in June 2005 with a
target depth of about 15,000 feet true vertical depth. Currently,
the well is still drilling with intermediate casing set to
approximately 14,100 feet and has already logged one productive
sand behind pipe. GEM holds an approximately 39% operated
working interest in this ninth well.
Main Pass, Plaquemines Parish - Louisiana
During the second quarter of 2005, GEM commenced
a major overhaul and rebuild of an additional compressor for
the Main Pass Field that has been off-line for the past four
years. This investment in the unit was an effort to increase
gas lift in the field and should permit GEM to return certain
wells to production. Currently, the unit is still undergoing
a testing period, however, the added capacity had already
increased field production in July 2005 by approximately 100
bopd with an expectation of more production from the additional
shut-in wells. GEM holds an average 90% working interest in
the Main Pass Field. GEM continues its geological and geophysical
study in the area, utilizing the recently acquired license
to 21 square miles of 3D seismic data, covering the area held
by production leases.
Raymondville Field, Willacy and Kenedy Counties -
Texas
In 2005, GEM participated in an active recompletion
campaign in this field with little success. GEM believes that
field production has peaked and will continue to decline.
GEM has an average 27% non-operated working interest in this
field.
Lake Raccourci Field, Lafourche Parish - Louisiana
GEM holds a 40% operated working interest in each
of its Lake Raccourci wells. GEM is presently seeking industry
partners to drill a field extension well. This prospect is
a result of continuing interpretation of GEM's 60 square
mile reprocessed 3D seismic database.
New 3D Seismic Licenses Acquired - Louisiana
GEM continues to evaluate seismic licenses acquired
in the fourth quarter of 2004 covering approximately 155 square
miles of 3D seismic data in three different surveys across
south Louisiana. The largest database is in Terrebonne Parish
and includes approximately 70 square miles. Approximately
56 square miles is in Cameron Parish, and approximately 29
square miles in Iberville Parish. A number of leads have developed
in this continuing study. GEM is in the process of cataloging
and prioritizing the seismic data.
South Beach Field, Chambers County - Texas
GEM has a non-operated working interest of 10% in
this area. The initial well was drilled to a true vertical
depth of 10,750 feet and completed in the fourth quarter of
2004. GEM also participated in a second well drilled during
the first quarter of 2005. Production facilities and a pipeline
were essentially completed in the second quarter of 2005,
but as of August 9, 2005, production on the well had not commenced
pending tie-in with the transmission company now expected
in the third quarter of 2005.
Branville Bay Field, Plaquemines Parish - Louisiana
GEM has a non-operated working interest of 12.5%
in this area. The initial well was drilled to a total depth
of 7,400 feet in the fourth quarter of 2004. The well was
completed in the two logged productive sands, and production
began in February 2005. A second well which was completed
to a total depth of 8,000 feet is currently awaiting pipeline
connection expected in the third quarter of 2005.
Point-a-la-Hache Field, Plaquemines Parish -
Louisiana
The initial well, State Lease 18077 #1, was drilled
to a true vertical depth of 10,300 feet in mid- December 2004.
The well was logged productive, completed and tested in the
lower sand of two sands that both logged productive. The well
began producing in July 2005. GEM maintains a 25% operated
working interest in the area.
Allen Ranch Field, Colorado County - Texas
The initial well, the Hancock Gas Unit #1, was drilled
to a measured depth of 16,983 feet in late January 2005. The
well was productive in four sands and first production began
in April 2005. GEM owns an 11.25% non-operated working interest
in the area.
Southeast Nada Field, Colorado County - Texas
GEM has a 17% non-operated working interest in this
area. The initial well, the Popp et al #1, was drilled to
a measured depth of 10,030 feet in late March 2005. The well
was logged productive in two sands and began producing in
May 2005.
Coalbed Methane Prospects - Indiana and Ohio
In March 2005, GEM entered into two significant Coalbed
Methane Exploration and Development Agreements, one related
to prospects in Indiana and the other related to prospects
in Ohio. Each prospect provides for an area of mutual interest
of approximately 400,000 acres. The agreements provide for
a phased delineation, pilot and development program, with
corresponding staged expenditures. Both agreements call for
GEM to fund 100% of the initial $7.5 million in costs to carry
out the joint exploration and development of the project in
return for a non-operating 65% interest in respective prospect
area, and an 82.5% net revenue interest. Ute Energy, a contracted
third party with a long track record in successful Coalbed
Methane development is the operator and provides expert advice
for these projects.
On the Indiana Prospect, GEM elected to drill an additional
core hole and expand the scope of the work, and as such has
funded $446,000 for Phase I. The last core hole was finished
at the beginning of July 2005. Gathered data is being processed
and analyzed. Following a report and evaluation of the cores,
an election by GEM with regard to Phase II for pilot well
drilling will most likely take place late in the third quarter
of 2005.
On the Ohio Prospect, funding of the work for Phase I of $284,200
is expected to occur in the third quarter of 2005. GEM expects
to move a rig to the applicable location during August 2005,
and for core drilling and data gathering to be completed by
early fourth quarter of 2005.
Management Comment
"For 2005, GEM allocated $16 million in domestic
capital expenditures to increase its oil and gas reserves
and grow production. As highlighted in today's update
we expect new production to come online in the Lapeyrouse,
Main Pass, South Beach, Branville Bay, and Point-a-la-Hache
fields. We are very encouraged by this progress along with
the initial test results on our Indiana CBM prospect,"
said Jim Denny, President of Gulf Energy Management Company.
HKN, Inc. 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, www.harkenenergy.com,
or by calling Bevo Beaven or Bill Conboy at CTA Public Relations
at (303) 665-4200.
Certain statements in this announcement including statements
such as "believes", "anticipates",
"expects" and all similar statements regarding
future expectations, objectives, intentions and plans for
oil and gas exploration, development and production may be
regarded as "forward-looking statements" within
the meaning of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on the opinions and estimates
of management at the time the statements are made. Management's
current view and plans, however, 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. The various uncertainties, variables, and other
risks include those discussed in detail in the Company's
SEC filings, including the Annual Report on Form 10-K/A, as
amended, for the year ended December 31, 2004 and its Quarterly
Report on Form 10-Q, as amended, for the period ended June
30, 2005. Harken undertakes no duty to update or revise any
forward-looking statements. Actual results may vary materially.
###
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Harken
Energy Reports Net Income of $15.7 Million, 44% Increase in
Revenue and 54% Increase in Operating Margin for the Second
Quarter of 2005
Dallas,
Texas - August 9, 2005 - HKN, Inc.
(AMEX: HEC) reports quarterly financial results and is pleased
to announce Net Income of $15.7 Million for the period ended
June 30, 2005. As summarized below, total revenues in the
second quarter of 2005 increased to $11.6 million, an increase
of 44% over the second quarter of 2004, due to increased international
production and higher oil and gas prices. Non-GAAP Operating
Margin increased to $5.8 million in the second quarter of
2005, representing 54% growth over the same period in the
prior year, and a 135% improvement as compared to the first
quarter 2005.
During
the six months ended June 30, 2005 Harken sold certain of
its common shares of Global Energy Development PLC ("Global"),
at market prices as of the date of each sale, in exchange
for total cash consideration, net of fees, of approximately
$26 million. These sales of shares decreased Harken's
ownership percentage in Global. Harken owned approximately
62% of Global's common shares as of June 30, 2005. In
accordance with APB Opinion 18 (As Amended) "The Equity
Method of Accounting for Investments in Common Stock"
and as a result of the sale of these shares during the six
months ended June 30, 2005, Harken recognized a gain of approximately
$20 million equal to the amount by which the total proceeds
exceeded Harken's proportionate carrying value of Global.
Since December 31, 2004, Global's common share price,
as listed on the AIM Exchange in London, has increased from
153 UK pence to 223 UK pence as of June 30, 2005. Three institutional
investors have taken a position in Global's common shares
during this same period, and the estimated fair market value
of Harken's investment in Global increased from approximately
$50 million(1) at December 31, 2004 to approximately $60 million(2)
at June 30, 2005.
(1) Estimated fair market value of $50 million was calculated
as the number of Global common shares held by Harken (less
outstanding warrants held by Lyford Investments Enterprises,
Ltd. to purchase up to 7,000,000 shares of Global held by
Harken) multiplied by Global's share price and the exchange
rate at December 31, 2004 (23,949,930 shares less 7,000,000
warrants multiplied by 153 UK pence per share at 1.92 currency
exchange rate).
(2) Estimated fair market value of $60 million was calculated
as the number of Global common shares held by Harken (less
outstanding warrants held by Lyford Investments Enterprises,
Ltd. to purchase up to 7,000,000 shares of Global held by
Harken) multiplied by Global's share price and the exchange
rate at June 30, 2005 (21,805,142 shares less 7,000,000 warrants
multiplied by 223 UK pence per share at 1.79 currency exchange
rate).
Operating
Summary
Gulf Energy Management Company (GEM):
During the period ended June 30, 2005, GEM continued development
of its operations and properties in the Gulf Coast area of
Texas and Louisiana, specifically the Lapeyrouse, Branville
Bay, Point-a-la-Heche fields in Louisiana and the South Beach,
Allen Ranch and Southeast Nada filed in Texas. As of June
30, 2005, GEM's net domestic production rate was at
approximately 7.3 million cubic feet equivalent of natural
gas per day. In addition, new production initiated subsequent
to June 30, 2005 has increased this rate to approximately
7.6 million cubic feet equivalent of natural gas per day related
to two wells completed in the second quarter 2005.
Related to GEM's Coalbed Methane Exploration and Development
Project in Indiana, covering 400,000 acres, GEM elected to
expand the scope of the Phase I coring work, and funded $446,000
in connection with the drilling and evaluation of five core
samples for Phase I during the quarter ended June 30, 2005.
The last core hole was finished at the beginning of July 2005.
Gathered data is being processed and analyzed. Following a
report and evaluation of the cores, an election by GEM with
regard to Phase II for pilot well drilling will most likely
take place late in the third quarter of 2005.
On GEM's Ohio Coalbed Methane Exploration and Development
Project, covering an additional 400,000 acres, funding of
the work for Phase I of $284,000 is expected to occur in the
third quarter of 2005. GEM expects to move a rig during August
2005 and expects the core drilling and data gathering to be
completed by early fourth quarter of 2005.
During the six months ended June 30, 2005, GEM's oil
and gas revenues increased 9% to approximately $9.7 million
compared to approximately $8.9 million for the prior year
period due to the increase in both oil and gas prices as compared
to the prior year period. GEM's natural gas production
decreased 19% as compared to the prior year period, affected
principally by a 40% reduction in production associated with
GEM's interests in its existing wells in the Raymondville
and Lake Raccourci fields. Initial production from GEM's
new wells drilled during the first six months of 2005 helped
to offset these declines. GEM's oil production decreased
11% related to normal production declines from existing wells.
Global
Energy Development PLC:
Global revenues during the first six months of 2005 relate
to Global's oil operations in Colombia. Global's
Colombian oil revenues increased 65% from $5.5 million during
the first six months of 2004 to $9.1 million during the first
six months of 2005, due to increased oil prices, which averaged
$39.07 per barrel during the first six months of this year
compared to $27.62 per barrel during the first six months
of 2004 along with increased oil production. Global's
oil production volumes increased 17% during the first six
months of 2005 compared to the prior year period primarily
due to the new production from the Tilodiran #1, Macarenas
#1 and Estero #5 wells, mitigated by normal production decline.
Global's operating expenses increased 87% from $1.2
million during the first six months of 2004 to $2.2 million
for the first six months of 2005, primarily due to higher
diesel fuel and equipment rental costs.
In May 2005, Global signed a new exclusive Technical Evaluation
Agreement ("TEA") with the National Hydrocarbons
Agency of the Republic of Colombia for the evaluation of potential
hydrocarbons resources in the Valle Lunar area located in
the established Llanos Basin of eastern Colombia. The total
acreage covered by the TEA is approximately 2.1 million acres.
The Valle Lunar area has been subject to prior exploration
activity by an international petroleum company in 1981 with
two exploration wells reported as productive at that time.
The Valle Lunar TEA targets medium heavy oil deposits and
grants Global the exclusive option to sign a future Exploration
and Production Concession contract, typically 25 years in
duration, for acreage within the TEA area that Global identifies
as prospective and suitable for exploratory drilling and production
operations. The TEA duration is 16 months.
The TEA requires Global to complete within 12 months the reprocessing
and interpretation of 800 linear kilometers of existing 2D
seismic and certain other geophysical measurements and analysis,
including the acquisition of aeromagnetic data.
In May 2005, Global commenced work to acquire approximately
56 kilometers of new 2D seismic within its Rio Verde Exploration
and Production Contract in Colombia. The seismic is being
acquired around the two producing wells located on the Rio
Verde acreage, the Tilodiran #1 and Macarenas #1, in order
to evaluate and then proceed with the drilling of additional
wells within the contract area. In addition, a proportion
of the seismic is being acquired elsewhere in the contract
area to consider future exploratory wells. The new seismic
will be processed alongside with the reprocessing of 300 kilometers
of existing seismic as required under the terms of the contract.
International Business Associates (IBA):
IBA's net loss for the six months ended June 30, 2005
totaled approximately $2 million, which was primarily associated
with general and administrative expenses and foreign currency
losses. Harken invested in IBA, a start-up energy trading
company, in late 2004. IBA is in the initial stages of operations
and is focused primarily on opportunities created by the deregulation
of the energy market in Eastern Europe by seeking to trade
energy futures or other energy based contracts, principally
in Hungary and the United States. IBA began trading natural
gas contracts in the United States during late 2004 and has
continued with minimal trading activities during the first
six months of 2005.
Balance Sheet Summary
As the ratios below show, Harken has improved its Working
Capital by over 88% since year-end 2004 to approximately $41
million at June 30, 2005. Harken reduced its debt by 39% during
the six months ended June 30, 2005, ended the period with
over $30 million in cash less debt as detailed below:
Management
believes the presentation of this non-GAAP financial measure,
in connection with the results for the three and six months
ended June 30, 2005 and 2004, provides useful information
to investors regarding the Company's results of operations.
Management also believes that this non-GAAP financial measure
provides a picture of Harken's results that is comparable
among reporting periods and provides factors that influenced
performance during the period under the report. This non-GAAP
financial measure should be considered in addition to, and
not as a substitute for, financial measures prepared in accordance
with GAAP.
HKN, Inc. 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, www.harkenenergy.com,
or by calling Bevo Beaven or Bill Conboy at CTA Public Relations
at (303) 665-4200.
Certain statements in this announcement including statements
regarding future expectations, objectives, intentions and
plans for oil and gas exploration, development and production
may be regarded as "forward-looking statements"
within the meaning of the Securities Exchange Act of 1934,
as amended. Forward-looking statements are based on the opinions
and estimates of management at the time the statements are
made. Management's current view and plans, however,
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. The various
uncertainties, variables, and other risks include those discussed
in detail in the Company's SEC filings, including the
Annual Report on Form 10-K/A, as amended, for the year ended
December 31, 2004 and its Quarterly Report on Form 10-Q, as
amended, for the period ended March 31,2005. Harken undertakes
no duty to update or revise any forward-looking statements.
Actual results may vary materially.
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Harken Energy Completes Two Million
Share Buyback of Common Stock and Authorizes an Additional
Two Million Share Repurchase Plan
Dallas,
TX - June 28, 2005 - HKN, Inc. (AMEX:
HEC) announced it has completed the buyback of two million
shares of its common stock. These shares were repurchased
as part of the stock repurchase plan previously announced
in May of 2005.
The
Board of Directors of Harken Energy has authorized another
stock repurchase program to buy back up to two million shares
of its common stock. All repurchases will be made from time
to time in the open market when opportunities to do so at
favorable prices present themselves in compliance with all
applicable laws and regulations, including the Securities
and Exchange Commission rules.
HKN, Inc. 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, www.harkenenergy.com
, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations
at (303) 665-4200.
Certain
statements in this announcement including statements regarding
future expectations, objectives, intentions and plans for
oil and gas exploration, development and production may be
regarded as "forward-looking statements"
within the meaning of the Securities Exchange Act of 1934,
as amended. Forward-looking statements are based on
the opinions and estimates of management at the time the statements
are made. Management's current view and
plans, however, 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. The various uncertainties, variables, and
other risks include those discussed in detail in the Company's
SEC filings, including the Annual Report on Form 10-K/A dated
June 23, 2005 and quarterly report on Form 10-Q/A dated June
23, 2005. 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. Actual results may vary
materially.
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Harken Energy Raises Additional
$1.2 Million Through Sale of Global Energy Shares
Dallas,
TX - June 27, 2005 -
HKN, Inc. (AMEX: HEC) negotiated and closed
the sale of 345,374 shares from its existing holdings in subsidiary
Global Energy Development PLC, raising approximately $1.2
million in new capital for Harken Energy.
The
sale of Harken's Global Energy Development shares was
conducted through private sales at market prices. As
a result of this transaction Harken Energy now holds 21,905,142
shares or approximately 62.67 |
