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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 15, 1995
HARKEN ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
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DELAWARE 0-9207 95-2841597
(State or other jurisdiction of (Commission File (IRS Employer
incorporation) Number) Identification No.)
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5605 N. MACARTHUR BLVD, SUITE 400 75038
IRVING, TEXAS (ZIP Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (214) 753-6900
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ITEM 5. OTHER EVENTS
Harken Energy Corporation ("Harken") announced that Harken has entered
into an agreement to acquire producing oil and gas properties in the Texas
Panhandle. The closing of this acquisition is expected to occur on or about
December 20, 1995.
A copy of Harken's Press Release dated December 18, 1995, filed
herewith as Exhibit 99.1, is incorporated by reference herein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements of businesses acquired.
None.
(b) Pro forma financial information.
None.
(c) Exhibits.
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Exhibit
Number Description
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99.1 -- Press Release dated December 18, 1995.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HARKEN ENERGY CORPORATION
Date: December 18, 1995 By: /s/ Bruce N. Huff
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Bruce N. Huff,
Senior Vice President and
Chief Financial Officer
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INDEX TO EXHIBITS
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Sequentially
Numbered
Exhibit No. Exhibit Page
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99.1 Press Release dated December 18, 1995
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NEWS RELEASE FOR FURTHER INFORMATION 214-753-6900
FOR IMMEDIATE RELEASE
HARKEN ANNOUNCES PURCHASE OF TEXAS
PANHANDLE OIL AND GAS PROPERTIES
Dallas, Texas (December 18, 1995)--Harken Energy Corporation
("Harken") (AMEX: "HEC") announced today that it has signed a purchase
agreement to acquire certain producing oil and gas properties located in the
Texas Panhandle. A recent Ryder Scott independent reserve report estimates
future net revenue from the purchased properties to be $73 million and the net
present value of $44 million.
Current production from the properties is approximately 80% natural
gas and 20% oil. In addition to existing production, the properties have
substantial proved undeveloped reserves which Harken plans to systematically
develop over the next two to four years. The properties purchased included an
area pipeline and gathering system that has capacity and expansion capability
to accommodate the planned development of the properties. Natural gas produced
from the properties is extremely rich in terms of BTU content, and therefore,
currently sells for a significant premium on a BTU adjusted basis to spot
market prices. Natural gas from the properties is currently selling for $3.30
per mcf.
Under the terms of this purchase, Harken will issue 2.5 million shares
of restricted common stock to the sellers, pay $2.5 million in cash and issue a
non-recourse note payable to the seller for $13 million. Harken will have the
option over the next two years to repay all or part of this $13 million note
with restricted common stock at conversion rates tied to future trading prices.
Mikel D. Faulkner, Chairman of Harken, stated, "This acquisition will
significantly increase our domestic asset base and has the development
potential to produce very favorable future domestic cash flows." He also
added, "The addition of these new properties continues to strengthen our
domestic presence and financial capabilities, thereby allowing us to expand our
international exploration activities."
In international news, Harken has selected a drill site for the first
well planned to be drilled on the Rio Negro prospect (Torcaz #1) in the Middle
Magdelena Basin of Colombia. As previously announced, Harken's financial
partner, Kayne-Anderson, will provide $3.5 million that will be utilized by
Harken to fund 100% of the estimated costs to drill and complete the first two
wells on the prospect. The Company is currently waiting on the approval and
issuance of environmental permits by the governmental authority before it can
initiate construction of the drill site and subsequent drilling. Independent
engineering and reservoir analysis has estimated that utilizing modern drilling
and completion technology, approximately 200 million barrels of recoverable
hydrocarbon potential exists on the Rio Negro prospect. Harken is in various
stages of developing other prospects within its four contract areas in Colombia
that now total approximately 900,000 acres.
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HARKEN ENERGY CORPORATION ("HARKEN") (AMEX: "HEC") EXPLORES FOR, DEVELOPS AND
PRODUCES OIL AND GAS RESERVES DOMESTICALLY AND INTERNATIONALLY. THE COMPANY
CURRENTLY CONTROLS ACREAGE IN COLOMBIA AND OFFSHORE BAHRAIN AND IS ACTIVE IN
THE PARADOX BASIN IN UTAH AND THE ONSHORE GULF COAST OF TEXAS.
