Harvest Natural Resources Announces Agreement to Exchange Common Stock for Outstanding 8.25% Senior Convertible Notes

Harvest Natural Resources, Inc. HNR announced today that it has entered into exchange agreements with certain existing noteholders of its 8.25% senior convertible notes pursuant to which such noteholders agreed to exchange $4,651,000 principal amount of the notes for 829,951 shares of common stock, resulting in an effective exchange price of $5.60.  The conversion price of the notes issued on February 17, 2010 was $5.71.  In addition, in lieu of cash, HNR agreed to issue to the noteholders 41,215 shares of common stock at $9.31 per share in exchange for foregoing a one year interest make-whole of $383,707.50.  After giving effect to the exchange, approximately $10,900,000 principal amount of the notes remain outstanding.  The exchange is expected to close on August 23, 2012.