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Second Time’s a Charm, Harken Energy Unloads Texas Panhandle Assets
After its first attempt collapsed in October, Harken Energy Corp. said Monday that it has sold the majority of its oil and gas properties located in the Panhandle region of Texas for approximately $7 million in cash.
Harken had said that it considered 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. With the proceeds from the sale, Harken said it repaid all outstanding bank debt, which came to about $4 million.
In October, Harken announced that its previously announced agreement for the sale of the properties had been terminated by both parties. That transaction was expected to close on Nov. 5. Harken enlisted Petrie Parkman as a financial advisor to help in the divestment of the assets.
“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,” said Alan G. Quasha, Harken’s chairman. “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.
“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.”
The Houston-based company did not disclose the buyer of the assets.
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