Harken Energy Provides Domestic Operations Update

Harken Energy has released updated production figures and well completion status for its domestic oil and gas operations, which are located primarily along the onshore and offshore Texas and Louisiana Gulf Coast.

Harken's net domestic production rate rose to 9,189 thousand cubic feet equivalent (Mcfe) per day. Harken is committed to the continuing development of its domestic operations in 2004 and has budgeted approximately $9 million to grow its Gulf Coast operations in 2004. The following field data updates the status of Harken's domestic drilling projects through the end of June.

Lapeyrouse Field -- Louisiana

  • Thomas Cenac #1, in which Harken has a 28% working interest and is the operator, is back on production at a gross rate of approximately 800 Mcf per day.
  • Harken holds various working interests between 6% and 10% in three other wells that are together producing at a combined gross rate of 17,100 Mcf per day plus 155 barrels of condensate per day.
  • A well in which Harken has a 10% working interest, is currently completing in the Duval Sand.
  • A new development well, in which Harken has a 10% working interest, was spudded June 23, 2004.

  • Main Pass -- Louisiana

  • Harken has been granted a permit to increase its gas processing capacity from 27,000 Mcf per day to 41,000 Mcf per day at its offshore platform that currently serves a number of wells and operators in the field.

  • Raymondville, Willacy and Kenedy Counties -- Texas

  • Yturria #4-1, in which Harken has a 27% non-operated working interest, has been completed and stimulated by hydraulic fracturing. The current production rate is approximately 700 Mcf per day.
  • Yturria #3-28, in which Harken has a 27% non-operated working interest, was drilled to a measured depth of 8,735 feet. The well was subsequently plugged and abandoned as a dry hole.
  • An AFE to drill the Yturria # 3-29 has been approved, with expected spud in the next 30 days.
  • Two additional workover wells, the Yturria #3-5 and Yturria #3-26 have been approved for immediate implementation.

  • Lake Raccourci Field -- Louisiana

    As of June 30, 2004, the Lake Raccourci field production rate, which had doubled during the first quarter of 2004, is holding at approximately 9,700 Mcfe per day, gross. Harken holds a 40% operated working interest in each of its Lake Raccourci wells.

  • Drilling prospect, SL 1480 #4 has been downgraded in priority after new reprocessed seismic data revealed less favorable drilling economics than initial reports.
  • Harken is presently evaluating other prospects in the field using its 60-square mile reprocessed 3D seismic database.

  • "We are pleased with the results from our domestic operations through the first half of 2004, and we are confident that further analysis of our 3-D seismic data will allow us to identify additional new prospects in these fields," said Alan G. Quasha, Chairman of Harken Energy. "Our goal for 2004 is to continue to add production and to generate increased sales of oil and gas from our domestic assets at reasonable finding costs."