SOURCE: Harken Energy Corp.

November 29, 2005 16:30 ET

Harken Energy Subsidiary Enters Into Third Coalbed Methane Exploration and Development Agreement

DALLAS, TX -- (MARKET WIRE) -- November 29, 2005 -- Harken Energy Corporation's (AMEX: HEC) wholly owned subsidiary, Gulf Energy Management Company ("GEM"), has entered into a new agreement for the joint exploration and development of coalbed methane (CBM) acreage located in Ohio.

The agreement between GEM and Ohio Triangle, L.P. was effective on November 21, 2005, and calls for GEM to purchase a 65% non-operating working interest in CBM acreage located in Ohio. GEM's current plans are to drill three core holes commencing by the end of the first quarter 2006 in Phase I. Based on favorable results in Phase I, GEM has the option to purchase approximately 20,000 acres of coal rights and initiate a Pilot Program in Phase II. Following a review of Phase II results, GEM has the option to begin a development program during which GEM would provide 100% funding up to total expenditures of $7.5 million.

"This new CBM acreage in Ohio is an excellent strategic fit for our growing portfolio of CBM acreage and is consistent with our goal of building stable production and adding reserves to our asset base," said Jim Denny, Chief Executive Officer and President of Gulf Energy Management Company.

Updating the status of GEM's existing CBM agreements, GEM and its partner, Ute Energy, completed drilling of three core holes on its Ohio CBM prospect area and four core holes on its Indiana CBM prospect area during the third and fourth quarter of 2005. Based on the results, GEM has elected to fund Phase II of the CBM agreement in Indiana and plans to drill its first pilot wells during the first quarter of 2006. Core samples from the Ohio CBM prospect are in the process of being analyzed. Depending on final results, GEM may elect to schedule drilling of pilot wells on its Ohio CBM prospect area during 2006.

"With the initial results of the core samples from our Indiana prospect now in, we believe the gas content and economics are sufficient to begin moving ahead with our first group of five pilot wells in Indiana," Denny commented. "Once these wells are in place and dewatered, we will have our first look at the production and the upside potential of this prospect."

Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200.

Certain statements in this announcement including statements such as "believes," "anticipates," "expects" and all similar statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production 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, 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/A, as amended, for the year ended December 31, 2004 and its Quarterly Report on Form 10-Q, as amended, for the period ended September 30, 2005. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.

Contact Information

  • Contact:
    Bevo Beaven
    Vice President

    Bill Conboy
    Vice President

    CTA Public Relations
    303-665-4200