Harvest Announces Sale Of Its Interests In Venezuela - Quick Facts

(RTTNews) - Harvest Natural Resources, Inc. (HNR) announced the company and its subsidiary, HNR Energia B.V., have entered into a share purchase agreement with Petroandina Resources Corporation N.V. and Pluspetrol Resources Corporation B.V. to sell, in two separate transactions, all of the company's interests in Venezuela, for an aggregate of $400.0 million in cash.

Petroandina Resources will purchase Harvest's 32% interest in Petrodelta, S.A. by purchasing HNR Energia's 80% interest in Harvest-Vinccler Dutch Holding B.V. in two transactions of 29% and 51%, respectively. Harvest Vinccler owns, indirectly through subsidiaries, a 40% interest in Petrodelta.

S.A. HNR Energia and Petroandina Resources closed the first transaction for a cash purchase price of $125 million. Proceeds from the first transaction will be used to pay Harvest's long-term debt with the remaining proceeds used for working capital.

The closing of the second transaction for a cash purchase price of $275 million is subject to, among other things, approval by the holders of a majority of the company's common stock and the Government of the Bolivarian Republic of Venezuela.