• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Harken Energy Subsidiary, Global Energy Development PLC Signs Exclusive Contract Located Within Llanos Basin in Colombia

Posted on: Thursday, 6 April 2006, 18:00 CDT

Harken Energy Corporation (AMEX: HEC) announced today that Global Energy Development PLC ("Global"), in which Harken holds 11,893,462 ordinary shares, representing approximately 34% of Global's issued share capital, has signed a new exclusive Exploration and Production Concession contract for the Los Sauces area ("Los Sauces Contract") with the National Hydrocarbons Agency of the Republic of Colombia.

The Los Sauces Contract covers approximately 61,600 acres in the Central Llanos region of Colombia where Global already has three contracts, namely the Alcaravan Association contract and the Rio Verde and Los Hatos Exploration and Production Concession contracts. The Los Sauces Contract is contiguous with the northern boundary of the Rio Verde contract where Global is currently testing the Tilodiran #2 exploratory well, with one zone having produced at a natural flow rate of 1,125 bopd plus gas, and is also located nearby and adjacent to the established, producing Morichal and Tocaria fields operated by an international oil company.

Global will own 100% of the Los Sauces Contract subject only to an initial 10.5% royalty, with the size of the royalty to be determined by future production levels. The Contract, effective from March 31, 2006, has a principal term of 30 years divided into an initial six-year exploration phase and a 24-year exploitation and production phase. Under the terms of the Contract, Global must within 12 months reprocess approximately 200 kilometers of existing seismic, acquire and process 50 kilometers of 2D seismic, and drill one exploratory well.

Global can at its election proceed to phase 2, 12 months in duration, and drill one exploratory well. Phases 3 to 6, also all optional and 12 months in length, require the drilling of an exploratory well in each phase.

The Los Sauces area has been subject to prior drilling activity by an international oil company over 10 years ago at which time the La Totuma #1 well was drilled with reported oil shows. Based upon the existing formation and seismic data, Global has elected to position and drill an exploratory well geologically updip from the existing La Totuma #1 well in the second half of 2006.

The Los Sauces Contract brings the total number of contracts Global holds in Colombia to eight. Global also holds a Technical Evaluation Agreement in Colombia.

Global's Managing Director's Overview

Commenting on the new Los Sauces Contract, Stephen Voss, Global's Managing Director, said, "Los Sauces, together with drilling at Rio Verde, the Bocachico-Torcaz field recovery CO2 Project and the Bolivar improved recovery methane gas injection project, represent Global's lower-risk 'bridge' projects that are intended to ramp up near-term production and grow cash flow.

"Global proposes to accelerate its activity on the Los Sauces Contract area above the required contract terms as the management team considers the area to offer the potential for relatively predictable drilling with high daily production rates.

"Successful development of the forementioned 'bridge' projects should enable the more rapid execution of Global's opportunities at Caracoli and Luna Llena in Colombia, Block 95 in Peru and Garachine in Panama."

Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various holdings. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com. Please email all investor inquiries to HECinquiries@ctapr.com.

Certain statements in this announcement including statements such as "potentially,""planning,""believes,""anticipates,""expects,""projects" 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, further testing and analysis, 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 for the year ended December 31, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.

 Contact: Bevo Beaven Vice President or Bill Conboy Vice President CTA Public Relations Contact via http://www.marketwire.com/mw/emailprcntct?id=8B8DD58063DC13F0  

SOURCE: Harken Energy Corp.

Source: MARKET WIRE

More News in this Category