Harvest Natural Resources acquires Sulawesi exploration block

Houston-based independent energy firm Harvest Natural Resources, Inc. announced Wednesday it has acquired a 47 percent interest in the 1.35 million acre Budong-Budong PSClocated onshore West Sulawesi, Indonesia, from Tately Budong-Budong N.V. (Tately).

Tately is a subsidiary of Pexco N.V.

The acquisition is subject to approval by the Indonesian government authorities.

During the first three-year exploration phase of the PSC beginning January 2007, Harvest and Tately expect to acquire, process and interpret approximately 500 kilometers of 2D seismic and drill two exploration wells with estimated cost of US$22 million.

Tately will operate through the exploration phase of the PSC. Harvest has the option to assume operatorship upon approval of a plan of development for any commercial discovery, subject to BPMigas approval.

The Budong-Budong PSC contains Indonesian frontier terms with a net after-tax production sharing split of 35 percent contractor and 65 percent Indonesian government for oil and 40 percent contractor and 60 percent Indonesian government for natural gas. The effective date of the PSC is January 2007. The PSC has a 30-year term with an initial six-year exploration phase with an option for a four-year exploration extension.(alex)