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April 13, 2012 /PRNewswire/ -- Harvest Natural Resources, Inc. (NYSE: HNR) today provided an operational update of its first quarter international exploration and production activity.
During the first three months of 2012, Petrodelta drilled and completed four wells and sold approximately 2.98 million barrels of oil (MMBO) for a daily average of approximately 32,700 barrels of oil per day (BOPD), an increase of 16 percent over the same period in 2011;
Successfully drilled a second horizontal well in Isleno Field; the field is producing 2,400 BOPD;
Completed two re-entries and seven well services during the first quarter;
Petrodelta's current production rate is approximately 37,500 BOPD;
Facility expansion work at El Salto and Temblador Fields are underway;
2012 expected average production rate is 40,300 BOPD with capital expenditures projected at $300 million;
Exclusive negotiations for the possible sale of Harvest's 32 percent interest in Petrodelta are ongoing.
Currently negotiating to extend the Exclusive Exploration Authorization for a third period of four years, effective May 28, 2012;
Currently processing approximately 545 square kilometers of 3-D seismic acquired during the fourth quarter of 2011; the Central 3D Pre-Stack Time Migration (PSTM) volume is expected to be completed by June 2012.
License commitments fulfilled; planning to request a four year extension at the end of the initial six year term which expires January 16, 2013;
Prospects and leads being matured in the Lariang and Karama Basins;
Exploration well planned in 2013.
Work commitment fulfilled;
One year extension granted until March 2013.
Entered into equity distribution agreement with Knight Capital America, LP relating to an "at the market" (ATM) offering of Harvest's common shares having an aggregate sales price of up to $75.0 million;
Entered into exchange agreements with certain existing noteholders of our 8.25% senior convertible notes to exchange $15,984,000 principal amount of the notes for 2,875,357 shares of common stock.
Harvest President and Chief Executive Officer,
James A. Edmiston, said, "During the first quarter, the Company moved forward on several fronts. The exchange of about half of our senior convertible notes reduced our overall debt to about
$15.6 million at the end of the quarter for an overall debt reduction of 81% compared to the same period in 2011. Further, the Company closed on a facility for "at the market" sales of common stock. These two transactions have been in the works for months and have no relationship whatsoever to our announcement of a possible sale of our interests in Petrodelta. Whatever the outcome of our current or future negotiations regarding Petrodelta or any other assets, these two transactions provide flexibility and enhance our future liquidity while strengthening the balance sheet."
Edmiston continued, "I had the opportunity to visit Petrodelta two weeks ago and was pleased to see the ongoing progress in the field firsthand. The Petrodelta team has a clear vision of its outstanding growth potential and they are making steady progress with the early stages of that plan, primarily focused on infrastructure expansion at the El Salto and Temblador Fields. With the strong support of both shareholders, I think that the pieces are falling into place for Petrodelta to become one of the premier upstream businesses in
Venezuela over the next few years."
During the three months ended
March 31, 2012, Petrodelta sold approximately 2.98 MMBO for a daily average of 32,700 BOPD, an increase of 16 percent over the same period in 2011 and remaining at the same level over the previous quarter. Petrodelta also sold 0.6 billion cubic feet (BCF) of natural gas for a daily average of 6.9 million cubic feet per day (MMCFD), an increase of 34 percent over the same period in 2011, and a decrease of 17 percent over the previous quarter. Petrodelta's current production rate is approximately 37,500 BOPD.
During the first quarter of 2012, Petrodelta drilled and completed four wells. Two wells were development wells drilled in the Temblador Field. One development well was drilled in El Salto Field and the fourth well was drilled in the Isleno Field. Currently, Petrodelta is operating two drilling rigs and one workover rig and is continuing with infrastructure enhancement projects in the El Salto and Temblador Fields.