Harken...Subsidiary Signs Exploration and Exploitation Contract...in Peru

[HuckleB]

Harken Energy Subsidiary Signs Exploration and Exploitation Contract for the Block 95 Area in Peru

http://www.stockhouse.com/news/news.asp?tick=HEC&newsid=2717268

"Harken Energy Corporation's (Amex: HEC) 85% owned subsidiary, Global Energy Development PLC ("Global"), announces that the new License Contract between Global and Perupetro S.A. ("Perupetro"), the national oil company of Peru, for the Exploration and Exploitation of Hydrocarbons in the Block 95 Area located in the Maranon Basin of Northeastern Peru has been fully signed and is now effective.

Global owns a 100% working interest in the contract subject only to an initial 5% royalty, the most favorable terms received in the company's history. The size of the ongoing royalty is to be determined by future production levels. The contract duration is approximately seven years for the initial exploration phases and 23 years for the exploitation phase.

The contract assigns Global exclusive exploration and production rights to approximately 1,255,000 acres. During Phase 1 of the contract, the terms require Global to complete within 12 months, environmental impact studies and plans for the drilling of a well in the Bretana field located in Block 95.

If Global elects to enter Phase 2 of the contract, the company must acquire approximately 4800 square kilometers of micro-magnetic geophysical data in and around the Bretana field and elsewhere throughout Block 95. Phase 2 has a time period of 12 months. Should the company elect to enter Phase 3 it will be required to drill one exploratory well within 24 months. Phase 4 of the exploration period has a duration of 12 months and requires the acquisition of 75 square kilometers of 3 dimensional seismic, while Phases 5 and 6 both have a duration of 12 months and require the drilling of one exploratory well per phase.

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