Harvest Natural Resources, Inc. has announced the successful acquisition of significant additional leasehold covering its prospective Bay Exploration Area located near Galveston, Texas. This completes the lease acquisition phase in this area.
Harvest and its partners now control a major position in the Bay prospective area containing 13 identified leads in the regionally prolific Frio and Vicksburg intervals. This additional acreage was acquired at the Texas General Land Office lease sale held in Austin, Texas on July 1, 2008. The Bay prospective area is the second opportunity being pursued in Harvest's recently announced Gulf Coast AMI (area of mutual interest).
At the July lease sale, the AMI participants acquired a total of 6,510 acres representing all or part of 12 separate tracts for a total gross cost of $2.75 million. All bids submitted were successful. The newly acquired leases complement the AMI participants' previously existing leasehold in the prospective area which consists of 5,418 acres covering 7 separate shallow water tracts together with adjoining onshore acreage. Harvest's working interests range from 50 to 55 percent in the various tracts that make up the area.
The AMI participants are re-processing a proprietary 3-D seismic survey which covers a significant portion of the Bay prospective area to confirm the leads previously identified from initial interpretation of the 3-D survey. Soon the participants expect to start the planning and permitting process with intent to spud the initial well in the area during the first half of 2009.
"We are extremely pleased to have successfully expanded and consolidated our lease position on the Bay Exploration Area. We are looking forward to initiating drilling activity on the area, which we believe contains some of the most prospective undrilled features along the Upper Texas Gulf Coast," said Harvest CEO James Edmiston.
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