Harken Energy's subsidiary, Global Energy Development, has commenced production from the Canacabare #1 located in Global's Alcaravan Association Contract block in the Llanos Basin of Eastern Colombia. The well was drilled in 1998 and recorded oil shows in the Carbonera "C-7" sand. Because of poor weather and terrain conditions during the remainder of 1998 and 1999 the well was not completed until 2000. Earlier this year, Global commenced the installation of a 26 km pipeline connecting the well to Global's nearby Palo Blanco field and expects to commission this line prior to the end of March.
In anticipation of the completion of the pipeline Global initiated production from the Canacabare #1 on March 24, 2003 which will be accumulated in storage tanks until the pipeline commences operation. Harken holds an 86% ownership of Global, which owns interests in producing properties and prospects in Colombia and other countries in Latin America.