Harken considers the Panhandle assets as 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.
Harken has also repaid all outstanding bank debt, approximately $4 Million, with a portion of the Panhandle asset sales proceeds.
Harken's Chairman, Alan G. Quasha, stated, "While we expected to close on the sale of these Panhandle assets a month ago, we achieved our goal of selling these properties at a reasonable price and significantly reducing our debt by year end. Our cash now exceeds our outstanding debt, and we have been able to accomplish the restructuring of our balance sheet and cost structure expeditiously and without sacrificing any of our core assets. The entire management team deserves a great deal of credit. We look forward to being able to focus on growing our revenues, cash flow and earnings, and taking advantage of energy related opportunities from a position of strength."
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