Harvest Natural Resources, Pluspetrol Agree to $400M Deal for Harvest's 32% interest in Petrodelta

Harvest Natural Resources

today announced updated information about its continuing discussions with Pluspetrol Venezuela S.A. to sell Harvest's 32% interest in Petrodelta, S.A., its Venezuelan equity affiliate. In response to a new proposal by Pluspetrol, Harvest and Pluspetrol have agreed, subject to negotiation of definitive agreements, to enter into two independent transactions.  Under the proposal, Pluspetrol would purchase Harvest's 32% interest in Petrodelta, S.A. by purchasing HNR Energia B.V.'s 80% interest in Harvest-Vinccler Dutch Holding B.V. (HVDH) in two separate and independent transactions.  The total consideration for both proposed transactions would be $400 million.  In the first proposed transaction, which is expected to close in December 2013, Harvest would sell 29% of HVDH for $125 million.  Net proceeds from this first transaction are estimated to be approximately $120 million after deductions related to transaction expenses and taxes.  These net proceeds would be used to pay Harvest's long-term debt with the remaining proceeds used for working capital. In the second proposed transaction, Harvest would sell its remaining interest in HVDH for $275 million.  Closing of the second transaction is expected to occur in the first half of 2014 and would be subject to, among other