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Harvest Natural Resources Announces Revised Proposal From Pluspetrol For Company's Interests In Venezuela; Termination Of Negotiations With Vitol

HOUSTON, Nov. 19, 2013 /PRNewswire/ -- Harvest Natural Resources, Inc. (NYSE:  HNR) today announced updated information about its continuing discussions with Pluspetrol Venezuela S.A. to sell Harvest's 32% interest in Petrodelta, S.A., its Venezuelan equity affiliate.

In response to a new proposal by Pluspetrol, Harvest and Pluspetrol have agreed, subject to negotiation of definitive agreements, to enter into two independent transactions.  Under the proposal, Pluspetrol would purchase Harvest's 32% interest in Petrodelta, S.A. by purchasing HNR Energia B.V.'s 80% interest in Harvest-Vinccler Dutch Holding B.V. (HVDH) in two separate and independent transactions.  The total consideration for both proposed transactions would be $400 million

In the first proposed transaction, which is expected to close in December 2013, Harvest would sell 29% of HVDH for $125 million.  Net proceeds from this first transaction are estimated to be approximately $120 million after deductions related to transaction expenses and taxes.  These net proceeds would be used to pay Harvest's long-term debt with the remaining proceeds used for working capital.

In the second proposed transaction, Harvest would sell its remaining interest in HVDH for $275 million.  Closing of the second transaction is expected to occur in the first half of 2014 and would be subject to, among other things, receipt of approvals from Harvest's stockholders and the Government of the Bolivarian Republic of Venezuela.  Net proceeds from the second transaction are estimated to be approximately $200 million after deductions related to transaction expenses and taxes.

While Harvest and Pluspetrol have agreed to negotiate to enter into these transactions, there can be no assurance that these negotiations will result in the currently proposed transactions or any other transaction.

James A. Edmiston, President and CEO of Harvest, said:  "After extended negotiations with Pluspetrol, we have come to believe this structure affords the parties a much less complex transaction structure while at the same time providing Harvest with the near-term liquidity required to fund the Company and complete the previously announced sales processes."

Harvest also announced today that negotiations toward definitive agreements with Vitol S.A. for the sale of the Company's 66.667% interest in the Dussafu Marine Permit PSC, offshore Gabon, as announced September 30, 2013, have terminated as the parties failed to reach definitive agreements.

Mr. Edmiston continued:  "In spite of our best efforts, we were unable to reach an agreement on the terms of a transaction with Vitol that would meet Harvest's requirements on timing and certainty.  As evidenced by Gabon's recent deepwater bid round, industry interest is very high in the Gabonese deepwater area.  We have just completed our 1,130 square kilometer 3-D seismic acquisition covering Harvest's discoveries as well as the highly prospective outboard area of the block.  Our discoveries on the block, our substantial prospect inventory, and the excellent prospectivity of our outboard area should continue to draw substantial industry interest."

About Harvest Natural Resources:

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