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| Harken Announces Record Date for Proposed Offering of Subscription Rights |
HOUSTON, Jan. 17 /PRNewswire-FirstCall/ -- Harken Energy Corporation (Amex: HEC) ("Harken") announced today that the close of business on January 30, 2003 will be the date of record for determining the stockholders entitled to receive subscription rights pursuant to the proposed rights offering of Harken, subject to receiving stockholder approval for the rights offering at Harken's annual meeting of stockholders to be held on January 29, 2003. If the rights offering is not approved, then subscription rights will not be distributed and the record date will not occur. Pursuant to the rights offering, Harken will distribute to holders of its common stock, Series G1 preferred stock and Series G2 preferred stock, at no charge, nontransferable subscription rights to purchase shares of its common stock, par value $.01 per share. Each holder will receive one subscription right for each share of common stock owned (or in the case of the Series G1 preferred stock and Series G2 preferred stock, one subscription right for each share of common stock issuable upon conversion) as of the record date. Each subscription right will grant the holder the right to purchase a number of shares of Harken common stock equal to $10 million divided by the subscription price, divided by the number of shares of Harken common stock outstanding plus the number of shares of Harken common stock issuable upon conversion of the Series G1 preferred stock, and Series G2 preferred stock on the record date. The subscription price for the subscription rights will equal 70% of the average market price prior to the offering. Fractional shares will not be distributed in the rights offering, and Harken will round up the aggregate number of shares that each stockholder is entitled to receive to the nearest whole number. The proposed rights offering is intended to raise gross proceeds of $10 million. To the extent any shares of common stock offered in the rights offering remain unsubscribed after the rights offering, a standby purchaser has agreed to purchase all such shares at the subscription price, subject to certain conditions. If the rights offering is approved by Harken's stockholders, Harken plans to mail subscription rights to eligible stockholders in early February. The commencement date of the rights offering has yet to be determined. The proposed rights offering is more fully described in the proxy materials for Harken's annual meeting of stockholders and the registration statement for the Harken common stock to be issued in connection with the rights offering, both of which have been filed with the Securities and Exchange Commission ("SEC") and are available at the SEC's web site, http://www.sec.gov . Mikel D. Faulkner, Harken's Chairman and Chief Executive Officer, stated that "This proposed rights offering, if approved by Harken's stockholders, would generate $10 million in gross proceeds to the company to reduce Harken's indebtedness and generate additional working capital, while providing an opportunity for current stockholders to invest in Harken at a discount to market price. Harken's Board of Directors has recommended that its stockholders vote for this proposed rights offering at its upcoming annual meeting of stockholders." Based in Houston, Texas, Harken is an oil and gas exploration and production company whose corporate strategy calls for concentrating its resources on exploration and development of its domestic properties in the Gulf Coast regions of Texas and Louisiana. Certain statements in this news release regarding future expectations and plans may be regarded as "forward looking statements" within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as the inherent uncertainties in interpreting engineering data related to underground accumulations of oil and gas, timing and capital availability, discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K. Actual results may vary materially. http://www.harkenenergy.comSOURCE Harken Energy Corporation
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CONTACT:
Investor Relations of Harken Energy
Corporation, +1-281-504-4000, or info@harkenenergy.com
