Harvest to sell stake, spin off assets
Friday, September 13 2013 - 01:32 AM WIB
US firm Harvest Natural Resources Announces Exclusive Negotiations to Sell Company Including Venezuela; Spin-off of Remaining Assets
US independent oil, gas firm announced Wednesday that it has entered into exclusive negotiations with Pluspetrol Venezuela S.A., an entity belonging to one of the leading exploration and production companies in Latin America, to sell the outstanding shares of Harvest.
Under the proposed transaction, at closing Pluspetrol would retain Harvest's 32% interest in Petrodelta S.A. , while Harvest's non-Venezuelan assets would be contributed to a new company (SpinCo) that would be spun off to Harvest's shareholders. SpinCo will be managed by Harvest's current management team.
The total consideration for the proposed transaction with Pluspetrol is approximately US$373 million. This consideration for the proposed transaction includes the assumption of the Company's long-term debt and certain other obligations of the Company. The proposed transaction would be subject to customary working capital adjustments upon closing.
The remaining assets to be spun-off will include Harvest's interest in Gabon, Indonesia, Colombia , and China , as Harvest continues its current process to maximize the value of these assets for its shareholders.
In Indonesia Harvest holds 71.5 percent interest in Budong-Budong block located on the island of West Sulawesi .
On January, 2011 the company spud the first exploration well, the onshore Lariang LG-1. Down to a depth of 4,600 feet, the Lariang LG-1 well has encountered multiple oil and gas shows within the secondary Miocene objective. The primary Eocene targets lie below the Miocene down to a planned measured depth of 7,200 feet, the company said in its website.