Harvest exploring 'strategic alternatives'

Harvest Natural Resources Inc. has retained BofA Merrill Lynch to help in “exploring a broad range of strategic alternatives for enhancing shareholder value.” The alternatives might include the sale of assets or sale or merger of the company.

Sept. 27, 2010

By OGJ editors
HOUSTON, Sept. 27 -- Harvest Natural Resources Inc. has retained BofA Merrill Lynch to help in “exploring a broad range of strategic alternatives for enhancing shareholder value.” The alternatives might include the sale of assets or sale or merger of the company.

James A. Edmiston, Harvest president and chief executive officer, said the decision flows from “careful consideration of Harvest's current enterprise value as indicated by its stock price relative to our own internal valuation of the asset portfolio, the near and mid-term capital requirements of our business plan relative to our financial position, and preliminary expressions of interest received from third parties.”

Harvest has interests in oil and gas production in Venezuela through a 32% interest in Petrodelta and production starting last year at its Monument Butte development project in Utah. Other holdings include exploratory interests in Indonesia, Gabon, Oman, and China.

The company reported a $296,000 loss in the second quarter this year, compared with a $4.2 million loss in the same period a year earlier.