Harken Energy Announces New Crude Oil Sales Contract Offering Improved Terms for Colombia Production
April 21 2005 - 7:00AM
PR Newswire (US)
Harken Energy Announces New Crude Oil Sales Contract Offering
Improved Terms for Colombia Production DALLAS, April 21
/PRNewswire-FirstCall/ -- Harken Energy Corporation's (AMEX:HEC)
74.79% owned subsidiary, Global Energy Development PLC, announced
today that it has entered into a new crude oil sales contract with
Petrobras Colombia Limited, a subsidiary of Petrobras, the state
oil company of Brazil, with an effective date of May 1, 2005. The
new non-exclusive contract offers Global much improved terms
through a reduced quality adjustment levy with the company
anticipating an approximate $3.00 increase in the net well-head
price it receives per barrel. Quality adjustment levies can
fluctuate daily based upon market conditions and slight variances
in production blend. The contract is for an initial one year period
with an automatic renewal unless advance notice is received from
either party and covers all crude oil production from the Company's
Palo Blanco, Anteojos, Rio Verde, Torcaz and Bolivar fields in
Colombia, net of royalties paid to the Colombian government and
Ecopetrol's portion of production from one well, the Cajaro #1.
"With the recent addition of production from our new Rio Verde
field and continued success of the Mirador formation in the more
established Palo Blanco field the overall volume of Global's
lighter oil gravity has increased," said Stephen C. Voss, Global's
Managing Director. "As a result, the company has been able to mix
its heavier and light crudes together into a widely accepted medium
quality blend. This blend will now be sold on an aggregated basis
at a higher overall price yield compared to our previous single
well sales contracts that resulted in deeper price discounts for
our heavier oils. "The ability of the company to improve its
overall blend quality and hence get preferential pricing has been
facilitated by the increased number of producing wells in Global's
portfolio over the past three years. We currently have production
from 11 wells compared to just two in early 2002, both of which
were of heavy oil quality. As of April 3, 2005 production from
these 11 wells was 2230 barrels of oil per day." 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 such as
"potential", "accelerate" and "growth" 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/A for the fiscal year ended December 31, 2004 filed on
April 13, 2005. 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. Contact: Bevo Beaven, Vice President Bill Conboy,
Senior Account Executive CTA Public Relations 303-665-4200
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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