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Current HNR Stock Info

On March 16, 2011, Harvest Natural Resources (ticker: HNR) announced Q4’10 and year-end 2010 financial results.

HNR reported a Q4’10 net loss of $4.0 million, or $0.12 per share, compared to a net income of $5.1 million, or $0.15 per share in Q4’09. Revenues reported for Q4’10 were $2.7 million, an increase of 140% from Q4’09 revenues of $181,000.

For the year-end 2010, Harvest reported a net income of $15.3 million, or $0.43 per share, compared to a net loss of $3.1 million, or $0.09 per share for the same period in 2009. Revenues reported for 2010 were $10.7 million, an increase of 580% from 2009 total revenues of $181,000.

OAG360 Comments:

2010 U.S. Recap: As previously reported in a March 3, 2011 write-up, 2010 marked a significant growth year for Harvest. The company’s total proved reserves increased 17%, mostly due to its rapid increase in reserves related to its U.S. operations. HNR’s 1P reserves in the Uinta Basin, Utah, increased from 0.4 MMBOE to 4.6 MMBOE during 2010 due to the drilling of 19 successful wells in its Monument Butte Extension project and Lower Green River/ Upper Wasatch operational areas. HNR’s 1P reserves increased 8% from 2009 to 50.0 MMBOE net to Harvest.  Continued onshore U.S. development generated strong reserve increases at the company’s Antelope project in the Uinta Basin. ith 3P reserves at 86.4 MMBOE in Utah, Harvest has a strong visible growth path.

2010 Venezuela Recap: Harvest has 32% equity interest in Petrodelta, the company’s Venezuelan affiliate. HNR’s Venezuela net 1P reserves increased 8% from 2009 to 50.0 MMBOE. Petrodelta drilled and completed 16 development wells (100% successful) during 2010 and reported its 2010 average production rate was 23,455 BOEPD. During 2011, Petrodelta plans to drill 28 oil wells, two water injector wells and one gas injector well in Venezuela in an effort to meet its 2011 guidance of 36,000 BOPD. A bit of history: HNR was producing approximately 32,000 BOPD in 2005 before there was a change in the company’s Venezuelan ownership structure.

2011 Catalysts: On top of the company’s announcement that is continues to explore strategic alternatives, 2011 could prove to be a transformational year for Harvest. HNR plans to increase its U.S. oil production and reserves from its Antelope project in Utah while receiving additional cash dividends from operations in Venezuela which can be redeployed in HNR’s other growth areas. Harvest received $9.8 million in dividends from Petrodelta in October 2010. If successful, the company’s exploration prospects in Gabon and Indonesia have the potential to be large growth catalysts for HNR. Drilling operations on the first of two exploration wells have commenced at the Budong-Budong prospect in Indonesia and a rig has been contracted to spud its first exploration well in April 2011 at its Dussafu project offshore Gabon. During 2010, HNR raised $92 million in debt capital to fund its capital plans with minimal dilution.

Click here for the previous March 3, 2011 write up.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.