Are "they" the current 12? Minus the Officers and Directors right? You don't think they are shorting shares do you? So the other 6 shorted to get shares they can't trade for $3.15. I don't see why, their only returns will be distributions that won't have anything to do with share price as opposed to price per share. I guess the original 3 have a right to be #$%$. Do you think they are among the current 12? I'd bet on it.
Mgt. has some control of that with the buy back. The fact that they are so actively managing the share price tells me its on the block. These guys are good with the fundamentals imo, wildcatting not as much. Nice portfolio and $100m in cash.
A private SA company, 100% chance of insider enhanced trading. What will these nutty phuks do with themselves after Harvest is gone? Short strokes from here. GL
You're way under brother. They just ran Vitol off for that offer on Dassafu, they'll get $5+. Debt is $79m if they skip the next Q interest.
Right, I don't think he's changing plans. He'd get sued by not the least those who bought non trading shares. I'm just saying he'll get real offers for Dassafu if he can buy time. We're at $6 with the PD deal. We'll get more than $3 for Gabon. Do you mean $9?
Gabon is trying to change the production sharing agreement on the Total/Vaalco onshore play because they let their contract lapse. Contracts lapse all the time in between the exploration and development phases, they filed for an extension. Those are always granted but not this time. Gabon wants a bigger share of new contracts and commitments for services paid up front. This is the reason to buy Harvests contract which is completely up to date rather than trying to pick it up after a default. It would simply cost you more. PD closing-#1 is obviously the event. If that goes through Harvest gains time to wait out offers that include probable reserves and the prospect inventory. All covered by 3D and analyzing the new stuff is one of the things they need time for. Vitols offer gave Harvest credit for 20m bbls of oil, a joke. Estimates run from 50m very worst case to 600m if the outbound targets are real.
Vitol made their lowball offer hoping the PD deal would fall through. Harvest considered the offer in the same context. With the PD deal going through the offer was dead from Harvests end. This is why the continuation and discontinuation were announced at the same time. Certainly not to hide one behind the other. That Vitol deal was a horrible one for Harvest and it's good news that they didn't have to take it. It took 7 days from Edmistons call for final bids for Pluspetrol to give Harvest the terms they needed. This is because Edmiston had other offers but also because Pluspetrol really want's PD. I also believe that Pluspetrol was the original lowball offer from 08 and that PdVSA has been pushing them all along. They may have in fact managed the PT deal the way they did towards just this end. The definitive agreement will be announced within days not weeks.
I believe the stated goal of liquidation is still the plan. They'll get a $5/share offer for Gabon, don't yet know how the PD deal will net out. The second closing should go directly to shareholders and would be $5/share. If they use all of the first closings proceeds up, that would be that. But that's at least $40m (Ed stated in last CC, debt is around $79m) and it's hard to see them using that much unless they plan to drill which would be a major reversal to the stated goal. Some of that money should come home as well. I'm expecting a CC to explain. If we don't see such soon it's because they're working other offers that would be imminent imo.
$120m - $70m = $50m. Their burn ex debt is $500k/Q. If the plan is still Spinco, I believe it is, they don't need more than $10m to see that process through. $1/share divvy. And they got to tell Vitol to take it on down the coast. They'll get much more from Gabon.
HOUSTON, Nov. 19, 2013 /PRNewswire/ -- Harvest Natural Resources, Inc. (NYSE: HNR) today announced updated information about its continuing discussions with Pluspetrol Venezuela S.A. to sell Harvest's 32% interest in Petrodelta, S.A., its Venezuelan equity affiliate.
In response to a new proposal by Pluspetrol, Harvest and Pluspetrol have agreed, subject to negotiation of definitive agreements, to enter into two independent transactions. Under the proposal, Pluspetrol would purchase Harvest's 32% interest in Petrodelta, S.A. by purchasing HNR Energia B.V.'s 80% interest in Harvest-Vinccler Dutch Holding B.V. (HVDH) in two separate and independent transactions. The total consideration for both proposed transactions would be $400 million.
In the first proposed transaction, which is expected to close in December 2013, Harvest would sell 29% of HVDH for $125 million. Net proceeds from this first transaction are estimated to be approximately $120 million after deductions related to transaction expenses and taxes. These net proceeds would be used to pay Harvest's long-term debt with the remaining proceeds used for working capital.
In the second proposed transaction, Harvest would sell its remaining interest in HVDH for $275 million. Closing of the second transaction is expected to occur in the first half of 2014 and would be subject to, among other things, receipt of approvals from Harvest's stockholders and the Government of the Bolivarian Republic of Venezuela. Net proceeds from the second transaction are estimated to be approximately $200 million after deductions related to transaction expenses and taxes.
While Harvest and Pluspetrol have agreed to negotiate to enter into these transactions, there can be no assurance that these negotiations will result in the currently proposed transactions or any other transaction.
Chances of this going to zero are zero. They can sell Gabon for enough to wipe the debt at any time. Not a good deal for shareholders, they have better options and will choose one. So it depends on where you shorted what you'll pay in taxes. I know you won't be shorting here.
I think you're right, this is what he was signaling. Pluspetrol got a reduction in price and Ramirez popped up the same day with the nod. Same with Vitol imo. Look for, "Rialto Secures Vitol as partner in West Africa, Worldwide, 23 April 2013". They bailed them out on a rig they couldn't pay for giving them $8m and committed to $50m in funding on blocks that that haven't even been drilled. No way they pass up this Gabon deal, it's a steal compared. Just a matter of price adjusted to terms.
Good stuff JC. This is all based on Etame which will be eclipsed by any one their prospects. Odds that they will close either the deal with Total in Gabon or the partnership in Angola are very good imo, 80%. You might sell the news but what about the potential production? The Gabon play is adjacent to a Total producer, they could be up in 18 months. Hard for me to see a clear trade point.
Panoro is also looking at liquidation. They were waiting to see what Harvest could do in the way of farm-in offers to produce. They expect to have ~$100m cash when they exit all but Dassafu. Vitol can have the whole thing for less than $300m. Uinta sold for 40% more. Those not getting leases last week have to be looking at this. Tullow has a buy back and is getting pounded elsewhere. They can triple that value by jumping in. Too bad we need to move on.
Once PD gets cashed out the share price goes to -$3 and it's a penny stock after Gabon goes. Edmiston is managing the timing and needs to close the card room on BB, then it all happens quickly.
Check a map. Sounds like PD, PD is a better play. Pretty good deal for Pluspetrol.
Reuters) - State oil company PDVSA and Spain's Repsol (REP.MC) are discussing a $1.2 billion financing deal for a joint venture in Venezuela, a top government official said on Wednesday.
The announcement was made by Petroleum Minister Rafael Ramirez during a visit to Caracas by Repsol boss Antonio Brufau. The funds would go to the Petroquiriquire joint venture, which runs mature oil fields in the east and west of the South American OPEC member country.
Ramirez said the financing was aimed at increasing the joint venture's output by 75,000 barrels per day (bpd), from a total of about 40,000 bpd currently produced at its three fields.
From AngolaPress. "The Angolan National Oil Company (Sonangol E.P) will soon launch a pre-qualification process for any operator interested in investing in oil sector in the country." EGYs deal can't be more than days away.