Global Energy Raises $12.5 Million through Issuance of Convertible Notes

Harken Energy (AMEX: HEC), says that Global Energy Development PLC, has raised $12.5 million through the issue of unsecured variable coupon convertible notes due October 30, 2012 to a Swiss-based fund manager. Harken Energy currently holds 11,892,922 ordinary shares, representing approximately 34% of Global's issued share capital.

The Notes have an annual coupon of 5% for the first three years, 6% from October 2008 to October 2010, and 7% thereafter, payable quarterly in arrears. The Notes are convertible into ordinary shares of Global at 305.8 pence per ordinary share, representing a 10% premium to the closing market price on October 28, 2005, the last trading day before delivery of the Notes.

"Global has increased its acreage position and prospects over the past year and we expect to further supplement our current 5.1 million acres over the coming months," said Stephen Voss, Global's Managing Director. "We expect to accelerate the drilling programs associated with a number exploratory projects in our portfolio. This financing also provides Global with additional funds to dedicate towards rig contracting allowing greater visibility over drilling schedules and for general corporate purposes as we move forward."