SOURCE: Harken Energy Corporation

April 02, 2007 11:36 ET

Harken Announces Expanded Stock Repurchase Program, Corporate Name Change and Reverse Stock Split

DALLAS, TX -- (MARKET WIRE) -- April 2, 2007 -- Harken Energy Corporation (AMEX: HEC) ("Harken") announced today that its Board of Directors has approved an expansion of Harken's current stock repurchase program to up to 25 million shares of its currently outstanding common stock. Under the terms of the repurchase plan, Harken intends to make purchases in the open market and in privately negotiated transactions, subject to prevailing market conditions.

Harken's Board of Directors also approved, subject to stockholder approval, a change in Harken's name from Harken Energy Corporation to HKN, Inc. The Board of Directors' decision to change the corporate name is intended to evidence Harken's efforts during the last three years to reorganize and simplify its balance sheet, to streamline its financial and capital structure and to provide a revitalized approach to its operations.

Harken also announced that the Board of Directors has approved, subject to stockholder approval, a reverse stock split. The intended increase in Harken's per share stock price and the reduction of total shares outstanding following the reverse stock split should provide a number of benefits to Harken and its shareholders.

--  An increase in Harken's per share stock price will result in a broader
    market for the common stock than currently exists. The present level of per
    share market price for its common stock ("a penny stock") impairs the
    acceptability of the stock by certain institutions, funds and other sectors
    of the financial community and the investing public.
--  The current market price of Harken's stock places it among the bottom
    10% of oil and gas companies traded on the American Stock Exchange. The
    reverse split is intended to allow Harken's shares to be traded above penny
    stock levels and thereby ensure that Harken's share price falls well within
    the majority of oil and gas stocks listed on the American Stock Exchange.
    The American Stock Exchange constantly reviews its listed stocks to
    determine their continuing qualification to be traded on that exchange.
    Harken believes that remaining a penny stock exposes it to greater risk of
    being delisted.
--  By decreasing the total number of shares issued, the reverse stock
    split will allow Harken's surplus, as determined under Delaware law, to
    increase thereby securing greater possibilities for Harken to consider cash
    dividends in the future.
--  Harken also believes that with a reduced number of shares outstanding
    following the reverse stock split, Harken's revenue efforts and cost
    savings will be more meaningfully reflected in disclosed earnings per share
--  Frequently, brokers charge trading commissions based upon the number
    of shares purchased. As a result, this trading commission per share is
    higher as a percentage of the value of Harken's common stock purchased. If
    the reverse stock split is approved and the price of Harken's common stock
    rises correspondingly, the trading costs for Harken's common stock should
Upon the effectiveness of the reverse stock split, every twenty-two and four-tenths shares of Harken's common stock outstanding prior to the reverse stock split will be consolidated into one outstanding post-split share of Harken common stock. Harken currently has approximately 220 million shares of common stock outstanding and therefore would have approximately 10 million shares outstanding after giving effect to the reverse stock split. No fractional shares will be issued. A stockholder who would otherwise be entitled to receive a fractional share of common stock as a result of the reverse stock split will receive instead cash in a proportional amount equal to the closing price of Harken's Common Stock on the American Stock Exchange on June 5, 2007. The reverse stock split would not affect any stockholder's equity interest in Harken, except for those stockholders who would receive cash in lieu of fractional shares.

Harken's Board of Directors will present the corporate name change and reverse split proposals to its stockholders at the annual meeting of stockholders scheduled for June 4, 2007. If approved, Harken intends to promptly file an amendment to its Restated Certificate of Incorporation so that the name change and reverse stock split will become effective as of June 6, 2007. Harken anticipates filing its Definitive Proxy Statement for the June 4, 2007 Annual Meeting of Stockholders in April 2007. Additional details with respect to these proposals will be set forth in Harken's Definitive Proxy Statement.

Harken Energy Corporation is an independent oil and gas exploration, development and production company who seeks to invest in energy-based growth opportunities. Additional information may be found at the Harken Energy Web site, Please email all investor inquiries to

Harken Energy Corporation will be filing a Definitive Proxy Statement with respect to the proposals described in this press release with the Securities and Exchange Commission ("SEC"). Stockholders are urged to read the Definitive Proxy Statement and any other relevant documents filed with the SEC when they become available because they will contain important information. Stockholders can obtain free copies of the Definitive Proxy Statement and other documents when they become available by contacting or by mail to Corporate Secretary at 180 State Street, Suite 200, Southlake, Texas 76078 or by telephone: 817-424-2424. In addition, documents filed with the SEC by Harken Energy Corporation are available free of charge at the SEC's web site at

Certain statements in this announcement regarding future expectations, objectives, intentions and plans for the reverse stock split such as "may," "should," "intends," "potentially," "expects," and similar terms may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, further testing and analysis, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K, for the fiscal year ended December 31, 2006. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.

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