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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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): October 15, 1999
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.)
16285 PARK TEN PLACE, SUITE 600 77084
HOUSTON, TEXAS 77084 (ZIP Code)
(Address of principal executive offices)
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Registrant's telephone number, including area code: (281) 717-1300
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ITEM 5. OTHER EVENTS
See press release dated October 15, 1999 attached hereto as an
Exhibit.
Experts
Certain of Harken's oil and gas reserves in Colombia have been
reviewed by its independent reserve engineers, Gaffney, Cline
& Associates, Inc., as stated in their report thereon.
Harken's disclosures of its oil and gas reserves in Colombia,
included in its Form 10-K for the period ending December 31,
1998, as amended, have been presented in reliance upon the
authority of such firm as experts in petroleum engineering.
Certain aspects and assumptions used in calculating Harken's
oil and gas reserves in the Alcaravan Association Contract
area in Colombia have been reviewed by Ryder Scott Company as
stated in their report thereon. Harken's disclosures of its
oil and gas reserves in the Alcaravan Association Contract
area of Colombia, included in its Form 10-K for the period
ending December 31, 1998, as amended, have been presented in
reliance upon the authority of such firm as experts in
petroleum engineering.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS:
(1) Exhibits
99.1 Press Release dated October 15, 1999
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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: October 15, 1999 By: /s/ Bruce N. Huff
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Bruce N. Huff,
President and Chief Financial Officer
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INDEX TO EXHIBIT
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EXHIBIT
NUMBER DESCRIPTION
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99.1 Press Release dated October 15, 1999
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EXHIBIT 99.1
HARKEN HARKEN ENERGY CORPORATION UPDATE 10/15/99
NEWS RELEASE FOR FURTHER INFORMATION CONTACT:
NEWS 24.99 J. MARC LEWIS: 281-717-1300
FAX: 281-717-1420
EMAIL: [email protected]
www.harkenenergy.com
FOR IMMEDIATE RELEASE
HARKEN GIVES BOLIVAR BLOCK UPDATE
HOUSTON, TEXAS (OCTOBER 15, 1999) -- Harken Energy Corporation (AMEX:
"HEC") previously announced that, in response to the disappointing production
test on the Laurel #1, it was reviewing technical data acquired in the drilling
of the well to further understand the unexpected production problems encountered
while drilling and testing the Laurel #1 well's Rosa Blanca structure.
The Laurel #1 was the third Harken well drilled on the Company's
250,000 acre Bolivar Association Contract block in the Middle Magdalena Valley
of Colombia. The Rosa Blanca formation in the Laurel #1 had log results similar
to the earlier successful Catalina #1 well, which is approximately six
kilometers to the northeast of the Laurel #1 location. The disappointing results
of the Laurel #1 well has resulted in the Company deciding to temporarily delay
construction of the flowline and additional drilling on this block until further
analysis of the well can be completed.
Over the next several weeks, the Company intends to conduct an
extensive technical study to integrate the new log and core analysis data
obtained from the prior vertical wells in the area, run pressure interference
tests with surrounding vertical wellbores, collect fluid samples for comparison
with old vertical wells and reevaluate the fracture model for both the Rosa
Blanca and La Luna formations. Once this analysis is done, the Company will be
better able to make prudent decisions regarding the location of future drilling
on the block. While the analysis will provide helpful information, a full
understanding of the complex field geology may only be obtained as Harken drills
the additional planned wells.
In the Laurel #1 well, the Company will utilize a workover rig to
evaluate the damage to formation flow potentials caused by the lost drill string
and the failure to maintain underbalanced conditions in the horizontal wellbore
during drilling. These activities, which could take 30 days or longer, will
hopefully provide information useful in determining if the well's production was
limited due to mechanical or geological reasons.
Stephen C. Voss, Harken's Executive Vice President and Chief Operating
Officer stated that "The Laurel well logs obtained during drilling showed Rosa
Blanca and La Luna oil columns at a substantial distance down dip from our prior
Catalina #1 and Olivo #1 discoveries. The Company must now determine if an
acceptable rate of oil production from the Laurel's Rosa Blanca formation can be
achieved in spite of the mechanical problems."
The Company is reviewing several options. If production does improve
under extended testing, Harken could continue its plan to develop the area by
drilling the planned La Luna location near the Laurel #1 wellbore. Fracture
modeling indicates that the fracture system may be more favorable in the La Luna
zone than that which was encountered in the Rosa Blanca formation. If the
testing does not result in acceptable production rates from the Laurel's Rosa
Blanca formation, the Company could utilize the Laurel wellbore to drill into
the shallower La Luna formation. The third choice under consideration is to
drill at a
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HARKEN HARKEN ENERGY CORPORATION UPDATE 10/15/99
new location, balancing field delineation objectives with production and cash
flow requirements.
Substantial progress has been made on all of the flowline engineering
and associated tubular materials bidding for the final step prior to issuing the
construction contract for the flowlines to connect the Catalina field to the
main area pipeline. As previously announced, the required environmental permits
and financing to drill additional wells and build the flowlines are all in
place. Management has decided to delay the actual construction of the flowlines
until additional capacity is needed beyond the current trucking capacity of the
Catalina and Olivo wells. Harken presently anticipates that the flowline
construction will be initiated and completed in the first quarter of 2000.
The long-term test permits for the Catalina #1 and Olivo #1 wells have
recently expired and Harken is currently providing Ecopetrol with production
reports and other data in order to resume production operations. During this
down time, as originally planned Harken is revising the lift method and
equipment on these two wells in order to increase their efficiency and daily
production volumes. Harken believes that new equipment could substantially
improve lift efficiency and production rates on each well.
Mikel Faulkner, Harken's Chairman, stated that "We continue to have
great expectations for the Bolivar block; however, it is critical that we have
the proper technical understanding of the formation and how best to extract the
oil. We are working to minimize the delay this additional technical analysis
requires in our drilling plans."
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HARKEN ENERGY CORPORATION ("HARKEN") (AMEX: "HEC") EXPLORES FOR, DEVELOPS AND
PRODUCES OIL AND GAS RESERVES DOMESTICALLY AND INTERNATIONALLY. CERTAIN
STATEMENTS IN THIS NEWS RELEASE REGARDING FUTURE EXPECTATIONS AND PLANS FOR
INTERNATIONAL OIL AND GAS EXPLORATION AND DEVELOPMENT MAY BE REGARDED AS
"FORWARD LOOKING STATEMENTS" WITHIN THE MEANING OF THE SECURITIES LITIGATION
REFORM ACT. THEY ARE SUBJECT TO VARIOUS RISKS, SUCH AS THE INHERENT
UNCERTAINTIES IN INTERPRETING ENGINEERING DATA RELATED TO UNDERGROUND
ACCUMULATIONS OF OIL AND GAS, TIMING AND CAPITAL AVAILABILITY, DISCUSSED IN
DETAIL IN THE COMPANY'S SEC FILINGS, INCLUDING THE ANNUAL REPORT ON FORMS 10-K
AND 10-KA FOR THE YEAR ENDED DECEMBER 31, 1998. ACTUAL RESULTS MAY VARY
MATERIALLY.
