Harvest Natural Resources Provides Update on Venezuela Transaction

Sep 11, 2012, 07:13 ET from Harvest Natural Resources, Inc.

HOUSTON, Sept. 11, 2012 /PRNewswire/ -- Harvest Natural Resources, Inc. (NYSE: HNR) today announced that as required by the Sale and Purchase Agreement described below, Harvest and PT Pertamina (Persero) met to evaluate the progress toward the closing of the sale by Harvest of its interests in Venezuela and that the parties have agreed to continue pursuing the various approvals required to close the transaction.

On June 21, 2012, Harvest announced that its wholly-owned subsidiary, HNR Energia B.V., had signed a Share Purchase Agreement (SPA) with PT Pertamina (Persero), the national oil company of Indonesia, to sell all of Harvest's interests in Venezuela, including its 32% interest in Petrodelta, S.A., for $725.0 million in an all-cash transaction. Net proceeds to Harvest are estimated to be $525 million after taxes and transaction costs.

The closing of the transaction is subject to, among other things, approval by the Government of the Bolivarian Republic of Venezuela, the Government of Indonesia in its capacity as the Buyer's sole shareholder and a majority of Harvest's stockholders.  If all of the conditions to closing are not satisfied or not waived on or before March 21, 2013, either the Buyer or Harvest may terminate the SPA.  The Boards of Directors of Harvest and Pertamina have each approved the transaction.

About Harvest Natural Resources:

Harvest Natural Resources, Inc., headquartered in Houston, Texas, is an independent energy company with principal operations in Venezuela, exploration assets in Indonesia, West Africa, China and Oman and business development offices in Singapore and the United Kingdom.  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 2011 Annual Report on Form 10-K and other public filings.

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

SOURCE Harvest Natural Resources, Inc.