Harvest updates Indonesian ops

The following is an excerpt taken from Houston-based firm Harvest Natural Resources, Inc?s Operational Update and 2010 Plans Report, released on Thursday. (ed)

Budong-Budong, onshore West Sulawesi (Harvest 47%)
The interpretation of 650 kilometers of 2-D seismic was completed in the third quarter and drill sites have been selected. Currently, the locations for the two test wells are being constructed and the rig and ancillary equipment is being mobilized to the area. It is expected that the first of two exploration wells will spud in mid-March 2010. In accordance with the farm-in agreement, we expect to fund 100 percent of the well expenditures to earn our 47 percent working interest up to a cap of $10.7 million; thereafter, we will pay in proportion to our working interest.

Should the two exploration wells provide positive results, we plan to drill and test two appraisal wells. We have the option to become operator after JOA approval of the development plan, and would then prepare for development drilling and construction facilities which would likely take place during 2011. Contingent on successful results of the exploration wells, capital expenditures of $28.0 million (net) have been planned for this project for 2010. (end of excerpt)