Harvest Implements Venezuelan Contingency Plan
Harvest Natural Resources, Inc reported that as a result of the continued disruption in Venezuela, the Company is proceeding with its previously announced operations contingency plan. Production from the fields in the South Monagas Unit has been systematically reduced over the last five days and is currently at approximately 8,000 barrels of oil per day (bopd). Sales to PDVSA ceased on Saturday, December 14th, and the Company today has about four days of storage capacity available at its own facilities before production would virtually cease.
Harvest President and Chief Executive Officer, Dr. Peter J. Hill said, "We are going through an orderly shutdown of our production to safeguard our staff, facilities and wells. Over the past two years, Harvest has reduced costs significantly and built substantial cash reserves. This gives us the financial flexibility to withstand any prolonged period of shutdown. We have delivered sales volumes for October, November plus the first 13 days of December. Field storage facilities, which hold production yet to be delivered for sale, contain approximately five days of future sales. While only two or three days notice is required to resume sales, there is no indication of when the political environment will stabilize to restart production and sales to PDVSA."