The Panhandle assets are considered non-core assets since the majority of Harken's domestic reserves and production are located along the Gulf coast regions of Texas and Louisiana. Harken's Gulf Coast assets are primarily natural gas.
The sale, which is subject to the approval from the board of directors of each of Harken and the purchaser, is scheduled to close on November 5, 2003.
Pursuant to the terms of the purchase and sale agreement, Harken will receive approximately $8.7 million in gross cash proceeds from the sale. Harken plans to use approximately $4.4 million of this amount to repay all of its outstanding bank debt, thereby increasing its financial flexibility.
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