Harvest Natural Resources Inc., Houston, (NYSE: HNR) has retained BofA Merrill Lynch to seek strategic alternatives for the company including a possible sale or merger.
The company has 247,113 gross acres (79,076 net acres) under concessions covering six oil fields in Venezuela through its equity affiliate Petrodelta, exploration acreage in the U.S. Gulf Coast region and 39,000 net acres in the western U.S., 47% interest in the 1.4-million-acre Budong-Budong production-sharing contract onshore Indonesia, offshore Gabon, an E&P contract covering 955,600 acres onshore Oman, and assets offshore China.
Total proved reserves as of year-end 2009 from the U.S. and Venezuelan assets were 46.7 million barrels of oil equivalent and proved, probable and possible reserves were 224.7 million barrels equivalent.
Harvest president and chief executive James A. Edmiston says, "This initiative is designed to examine all possible alternatives to unlock the potential of our assets and maximize value to our shareholders."
Edmiston says Petrodelta's production growth and the potential of Temblador and El Salto Fields have been demonstrated and the Antelope project in Utah has positioned the company for an oil appraisal and exploitation project on our extensive acreage position.
"In spite of measureable growth across our asset base, the stock is currently trading at levels which preceded both our successful contract conversion in Venezuela and more recent operational successes in the U.S.," says Edmiston. "We are determined to have the value of these opportunities recognized in our stock price, and are undertaking this assessment of strategic alternatives with BofA Merrill Lynch's assistance, to that end."
Contact Stephen C. Haynes, 281-899-5716.