Harvest Natural Resources, Inc. (NYSE:HNR) announced the sale of all of its Venezuelan interests effective this morning. This occurred in accordance with Harvest’s previously announced share purchase agreement back in June 29, 2016. This transaction was approved on September 15, 2016.
Upon close, Harvest had received $80 million cash, $12 million six-month note payable to Harvest by the purchaser and cancellation of $30 million in debt owed by Harvest to CT Energy. Part of this cash consideration was used to pay the remaining debt owed to CT Energy as well as our miscellaneous expenses related to the transaction.
Harvest has lost presence in Venezuela, two directors appointed by CT Energy to Harvest’s board have been resigned. All debt is cleared with CT Energy and the relationship between the two have been terminated.
Harvest’s main focus is its assets in oil and gas in Gabon. The company has received two proposal to purchase its Gabon interest and is in discussion with both potential buyers. Although there is interest in Harvest’s Gabon interest, there is no assurance that a deal will occur.
Harvest Natural Resources surged during pre-market hours this morning to a high of $1.34 before selling off. Harvest has reached a current intraday high of $1.05 with over 5 million shares traded.