Houston-based Harvest Natural Resources Inc. sold all of its Venezuelan interests in a closing that became effective the morning of Oct. 7.
As a result, Harvest no longer has a presence in Venezuela, and two of the directors appointed by CT Energy to Harvest's board resigned.
Now, Harvest's primary tangible asset is its oil and gas interests in Gabon. Harvest has received two proposals for the purchase of its Gabon interests and is in discussions with both potential buyers.
The transaction’s closing occurred in accordance with Harvest's June 29 share purchase agreement among subsidiary HNR Energia BV and CT Energy Holding SRL. Delta Petroleum NV, as a permitted assignee, fulfilled CT Energy's obligations under the share purchase agreement. Harvest's stockholders approved the transaction on Sept. 15.
At the closing, Harvest received $80 million in cash, a $12 million six-month 11% note payable to it by the purchaser, and cancellation of $30 million in debt that Harvest owed to CT Energy.
Harvest used part of this cash consideration to pay the remaining debt it owed to CT Energy and for other expenses associated with the transaction.
Net cash proceeds received after paying the above closing adjustments and other expenses was $69.4 million.
Also at the closing, CT Energy relinquished about 8.66 million Harvest shares. They will be held as treasury shares. Harvest now has about 44.3 million outstanding shares.
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