NEW YORK (TheStreet) -- Shares of Harvest Natural Resources (HNR) were gaining 3.2% to $1.95 on heavy trading volume Friday after the announcement that Venezuelan-Italian consortium CT Energy Holding SRL will purchase senior secured notes, convertible notes, and warrants from the oil company.
Harvest Natural Resources will receive $32.2 million from the sale of the senior notes and convertible notes. The company said it could realize up to $42.5 million in additional proceeds if the warrant options are fully exercised.
The company also announced a new strategic partnership with CT Energy Holding SRL and CT Energia to "maximize the long-term success and value of Harvest's Venezuelan operations and its 20.4% investment in Petrodelta S.A."
"CT Energy Holding's funding addresses our liquidity requirements for the near and medium term and will enable us to reinvest in our business, particularly in our Venezuelan operations and in the success of Petrodelta," CEO James A. Edmiston said. "Our strategic partnership with CT Energy Holding represents an important step forward in creating and implementing a new model for the operations and financing for Petrodelta, which will benefit all stakeholders."
About 4.1 million shares of Harvest Natural Resources were traded by 11 a.m. on Friday, above the company's average trading volume of about 990,000 shares a day.