Approximately $9 million of the 2004 capital expenditure budget focuses on the onshore and offshore Gulf Coast regions of Texas and Louisiana. Based in part upon the success of its drilling efforts in the fourth quarter of 2003, the majority of this budgeted capital amount will be used to drill five to seven exploratory and development wells in the Lake Raccourci and Lapeyrouse fields in Southern Louisiana, with the first of those wells, the State Lease 1480 #4, expected to be spud in March 2004. Harken currently holds an average working interest in the Lake Raccourci producing wells of approximately 40% and holds an average working interest of approximately 20% in the Lapeyrouse producing wells.
Harken's Middle America operations are conducted through its ownership in Global Energy Development plc ("Global") which is budgeted to spend approximately $9 million in 2004 for the development of the Alcaravan Contract area in Colombia, South America. Global expects to drill approximately three development wells in the Palo Blanco field under the Alcaravan Contract area with the first of those wells, the Estero #4, expected to be spud in late February 2004.
"Now that our restructuring plan has been successfully accomplished, and having ended 2003 with cash exceeding outstanding debt, we are focusing our attention on growing our company, and in particular, our reserves and cash flow. We are excited about our prospects and our plans to develop and grow our domestic and international oil and gas assets. Importantly, we expect to fund the $18 million in capital expenditures through projected cash flow and available cash on hand," said Alan Quasha, Harken's Chairman.
Most Popular Articles