Harvest Natural needs to restate some financials

Harvest Natural Resources says it needs to restate some financial results

Associated Press

HOUSTON (AP) -- Energy company Harvest Natural Resources Inc. says it will need to restate some financial results published between 2010 and 2012.

Its stock fell to its lowest point in more than 10 years in Thursday afternoon trading.

In a filing with the Securities and Exchange Commission, Harvest Natural Resources said that it will restate results for the years 2010 and 2011, as well as for the first through fourth quarters of 2011 and the first through third quarters of 2012.

The company said that it plans to restate its financials when it files its 2012 full-year financial results, which it anticipates doing "as soon as reasonably practicable."

Last month, Harvest Natural Resources said that it may be forced to revise or restate some financials for 2010 through 2012. It said that it had identified certain errors related to its incorrect capitalization of certain lease maintenances cost and certain internal selling, general and administrative costs. Furthermore, it found an error in the presentation of certain cash-flow items and determined that certain long-lived assets had been impaired.

Harvest Natural Resources Inc. is based in Houston but has operations in Venezuela, exploration assets in Indonesia, West Africa, China and Oman and business development offices in Singapore and the United Kingdom.

The company also said Thursday that its audit report will include a paragraph "expressing substantial doubt about our ability to continue as a going concern." This means that the company is unsure if it will be able to continue to operate indefinitely and avoid bankruptcy protection.

Shares of Harvest Natural Resources fell 35 cents, or 12 percent, to $2.62 in afternoon trading. Earlier in the session, the stock dropped to $2.45 its lowest level since 2002. The shares are down 70 percent for the year-to-date.

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