Harvest Natural Resources Announces 2015 First Quarter Results

HOUSTON, May 19, 2015 /PRNewswire/ -- Harvest Natural Resources, Inc. HNR (Harvest or the Company) today announced 2015 first quarter earnings and provided an operational update.

Harvest reported a first quarter net loss of approximately $5.6 million, or $0.13 per diluted share, compared with a net loss of $8.0 million, or $0.19 per diluted share, for the same period last year.  The first quarter results included exploration charges of $1.9 million, or $0.04 per diluted share.  Adjusted for exploration charges, Harvest would have posted a first quarter net loss of approximately $3.7 million, or $0.09 per diluted share, before any adjustment for income taxes.

Highlights for the first quarter of 2015 include:

Venezuela

• During the first three months of 2015, Petrodelta drilled and completed four development wells and sold approximately 3.63 million barrels of oil (MMBO) for a daily average of approximately 40,377 barrels of oil per day (BOPD), a decrease of six percent over the same period in 2014; 
• Petrodelta's current production rate is approximately 40,400 BOPD and the 2015 expected average production rate is 41,345 BOPD with capital expenditures projected at $265.0 million.

Gabon

• Harvest completed a pore pressure study using the new 3-D seismic over the prospective Outboard and the Development areas.

Indonesia

• Completed transfer of shares of Budong-Budong B.V. to Stockbridge Capital Limited.

Corporate

• On May 11, 2015, the Company borrowed $1.3 million to fund certain corporate expenses. 

VENEZUELA

During the three months ended March 31, 2015, Petrodelta sold approximately 3.63 MMBO for a daily average of 40,377 BOPD, a decrease of six percent over the same period in 2014 and one percent lower than the previous quarter.  Petrodelta sold 0.96 billion cubic feet (BCF) of natural gas for a daily average of 10.7 million cubic feet per day (MMCFD), increasing 71 percent over the same period in 2014, and decreasing two percent over the previous quarter.  Petrodelta's current production rate is approximately 40,400 BOPD.

During the first quarter of 2015, Petrodelta drilled and completed four development wells, one in the El Salto field and three in the Isleño field.  Currently, Petrodelta is operating six drilling rigs and one workover rig and is continuing with infrastructure enhancement projects in the El Salto and Temblador fields.

Petrodelta's production target for 2015 is projected to be approximately 41,345 BOPD.  The 2015 Petrodelta capital expenditures are expected to be approximately $265 million.  Petrodelta expects to drill 24 oil wells during 2015.

Petrodelta generated $145.7 million in revenue during the first quarter before deductions for royalties, compared to $326.5 million for the same period in 2014.  The average price of crude oil sold by Petrodelta during the first quarter was $39.69 compared to $83.97 for the same period during 2014.

Petrodelta reported a first quarter operating loss before taxes and non-operating items of $66.9 million compared to operating income before taxes and non-operating items of $84.8 million for the first of 2014.  Petrodelta posted a net loss of $32.0 million during the first quarter compared to net income of $48.5 million for the same period in 2014.  The Petrodelta financial results are prepared and presented under IFRS and it should be noted that the official exchange rate of 6.3 Bolivars per 1 US dollar is applied.  A new exchange rate called the Foreign Exchange Marginal System ("SIMADI") has been created.  The SIMADI rate published as of March 31, 2015 is 192.95 Bolivars per U.S. Dollars.  The SIMADI's marginal system is available in limited quantities for individuals and companies to purchase and sell foreign currency via banks and exchange houses.  Currently the SIMADI marginal system more accurately reflects the exchange rate between Bolivars and U.S. Dollars in Venezuela.  However, Petrodelta is not currently authorized to perform currency exchanges applying the SIMADI system.

EXPLORATION AND OTHER ACTIVITIES

Dussafu Project - Gabon (Dussafu PSC)

During the first quarter of 2015, Harvest completed a pore pressure study using the new 3-D seismic over the prospective Outboard and the Development areas.

Budong-Budong PSC – Indonesia

On February 5, 2015, the Company entered into a Share Purchase Agreement to transfer all of its shares of Harvest Budong-Budong B.V. to Stockbridge Capital Limited.  The transfer of shares was completed on May 4, 2015.

Corporate

On May 11, 2015, the Company borrowed $1.3 million to fund certain corporate expenses.  The Company issued a note payable to the lender bearing an interest rate of 15 percent per annum, with a maturity date of January 1, 2016.

Conference Call

Harvest will hold a conference call at 10:00 a.m. Central Daylight Time on Tuesday, May 19, 2015, during which management will discuss Harvest's 2015 first quarter results. The conference leader will be James A. Edmiston, President and Chief Executive Officer.  To access the conference call, dial 719-325-2420 or 888-401-4669 five to ten minutes prior to the start time.  At that time you will be asked to provide the conference number, which is 8651611.  A recording of the conference call will also be available for replay at 719-457-0820 or 888-203-1112, passcode 8651611, through May 22, 2015.

The conference call will also be transmitted over the internet through the Company's website at www.harvestnr.com.  To listen to the live webcast, enter the website fifteen minutes before the call to register, download and install any necessary audio software.  For those who cannot listen to the live broadcast, a replay of the webcast will be available beginning shortly after the call and will remain on the website for approximately 90 days.

About Harvest Natural Resources:

Harvest Natural Resources, Inc., headquartered in Houston, Texas, is an independent energy company with principal operations in Venezuela and exploration and exploitation assets in Gabon.  For more information visit the Company's website at www.harvestnr.com.

This press release may contain projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. They include estimates and timing of expected oil and gas production, oil and gas reserve projections of future oil pricing, future expenses, planned capital expenditures, anticipated cash flow and our business strategy. All statements other than statements of historical facts may constitute forward-looking statements. Although Harvest believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from Harvest's expectations as a result of factors discussed in Harvest's 2014 Annual Report on Form 10-K and other public filings.

Harvest may use certain terms such as resource base, contingent resources, prospective resources, probable reserves, possible reserves, non-proved reserves or other descriptions of volumes of reserves.  These estimates are by their nature more speculative than estimates of proved reserves and accordingly, are subject to substantially greater risk of being actually realized by the Company.  

CONTACT:

Stephen C. Haynes
Vice President, Chief Financial Officer
(281) 899-5716

 

 

 

 

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SOURCE Harvest Natural Resources, Inc.