Harvest updates Indonesian operation
Monday, March 30 2015 - 01:43 PM WIB
The following is an excerpt from US firm Harvest Natural Resources' quarterly report released on Monday. (ed)
Budong-Budong PSC (Harvest operator and 71.5% ownership)
In June 2014, Harvest and Harvest's partner adopted a resolution to terminate the Budong-Budong PSC in West Sulawesi; therefore no further drilling will occur. Harvest advised the Indonesian government of this decision on June 4, 2014, and is now in the process of finalizing the relinquishment of the interest.
As a result of these decisions, Harvest accrued a $3.2 million liability as of June 30, 2014 related to the December 5, 2012 farm-out agreement, thereby creating a total impairment expense of $7.6 million in the year ended December 31, 2014. Harvest paid this $3.2 million liability in October 2014. (end of excerpt)