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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): November 8, 1999
HARKEN ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
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)
Registrant's telephone number, including area code: (281) 717-1300
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ITEM 5. OTHER EVENTS
See press release dated November 1, 1999 attached hereto as an Exhibit.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS:
(1) Exhibits
99.1 Press Release dated November 1, 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: November 8, 1999 By: /s/ Bruce N. Huff
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Bruce N. Huff,
President and Chief Financial Officer
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INDEX TO EXHIBITS
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<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
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<S> <C>
99.1 Press Release dated November 1, 1999
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[NEWS RELEASE LETTERHEAD]
HARKEN ANNOUNCES STATUS OF THE COMPANY'S
DOMESTIC AND INTERNATIONAL PROJECTS
HOUSTON, TEXAS (NOVEMBER 1, 1999) -- Harken Energy Corporation (Amex:
HEC) announced today that the Company is making progress in several operational
areas.
BOLIVAR PROJECT. The Company has received authorization for its newest
120 day production testing period in order to continue evaluation of the
Catalina #1 and Olivo #1 wells on Harken's 254,000 acre Bolivar Association
Contract in the Middle Magdalena Valley of Colombia. Equipment is currently
being transported to the well sites to change the lift mechanism for each well.
Due to increased gas production on the Olivo #1 well, overall pump efficiency
has decreased. Changing the pump is expected to provide more consistent
production levels. On the Catalina #1 well, a downhole pump is being installed
for the first time. This well has been flowing naturally since its completion,
but gas production has also increased which has restricted oil production to
within limits imposed by the Ministry of Mines and Energy. Artificial lift may
improve the production efficiency of this well.
Ecopetrol, Colombia's state oil company, has asked for additional time
to study the reservoir in order to complete their analysis of commerciality. A
commerciality determination would require Ecopetrol to reimburse the Company for
50% of its prior exploration and development costs and pay for 50% of all
operating costs going forward. In exchange for that reimbursement, Ecopetrol
would receive a 50% interest in the project.
IMPROVED COLOMBIAN CONTRACT TERMS. Recently, Colombia has changed its
participation formula for new discoveries on existing association contracts and
for all future contracts to a much more favorable sharing arrangement. These
changes have resulted in royalty reductions of up to 75% and reductions in state
participation, after commerciality determinations, from 50% down to 30%. This
has resulted in significantly enhanced economics for future projects in the
country. These actions by Colombia have caused the Company to study its current
acreage positions to determine what opportunities there are for increasing its
profit participation in future exploration there. The Company is currently
evaluating various alternatives that are made possible by these recent changes.
SECURITY MEASURES IN COLOMBIA. Due to the increased guerilla activity
in Colombia, the Company continually reviews its internal security plans and
makes additional resources available in order to preserve the safety of its
operating personnel and the Company's assets. To date, Harken has not
experienced any significant security problems relating to its people or
facilities in Colombia.
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STATE LEASE 1480 #1 WELL. Harken is in the process of drilling its
State Lease 1480 #1 well in the Lake Raccourci Field in Lafourche Parish,
Louisiana. The estimated total depth of the well is 15,600 feet. A Harken
subsidiary will be operator of the well in which the Company owns an approximate
40% working interest. This well represents the first well to be drilled from
Harken's recently acquired Xplor Energy, Inc. subsidiary.
The well will test both development and exploratory objectives. The
well is located in approximately 12 feet of coastal waters and is being drilled
from a posted barge. The well results will be available later in the fourth
quarter.
STOCK REPURCHASE PLAN. During the last 15 trading days, the Company has
continued its stock repurchase plan and has purchased over 685,000 shares of the
Company's common stock in the open market. Average price for the stock purchase
has been approximately $1 per share.
Additionally, the Company has just purchased for $20 million in cash
all of the interests held by certain institutional investors under a development
finance agreement that was entered into originally in October 1997. These
interests purchased included the remaining investment of $15 million under this
development finance agreement plan, accrued interest at 15%, plus certain
contingent rights to receive shares of Harken common stock related to a prior
exchange by these investors in April 1999 when they exchanged $10 million of
this investment plus accrued interest for 6,481,512 shares of common stock.
COSTA RICA PROJECT. The Company and its partners received Ministry of
Environment and Energy approval of its 1999-2000 budget and work plan for its
first exploration project in the country of Costa Rica. The Company holds rights
to an 80% working interest in four exploration blocks totaling 1.4 million
acres. Seismic is scheduled to start in the next 30 days with processing and
interpretation to be done over the next six months. The initial exploratory well
to be drilled on the blocks is scheduled for the second half of the year 2000.
Mikel D. Faulkner, Harken's Chairman stated, "Harken continues to make
progress on a variety of fronts. We are very pleased to initiate the development
of the Xplor assets with the State Lease 1480 #1 well. This well is an excellent
example of the exploration and development potentials that encouraged us to make
the Xplor acquisition. Additionally, we are very happy with our progress in
Costa Rica and feel that this activity is moving along as planned. The Company's
activities are directed toward building real shareholder value which we hope
will ultimately translate into stock price improvement."
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HARKEN ENERGY CORPORATION ("HARKEN") 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 OR 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.
