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HARKEN ANNOUNCES 1991 RESULTS

 HARKEN ANNOUNCES 1991 RESULTS
 DALLAS, March 30 /PRNewswire/ -- Harken Energy Corporation (Harken)


(AMEX: HEC) of Dallas today reported a net loss from continuing operations of $12.6 million, or $.31 per common share (after accrued preferred stock dividends) for the fiscal year ended Dec. 31, 1991, on total revenues from continuing operations of $6.8 million. Harken's continuing operations include domestic exploration and production and oilfield services as well as exploration activities offshore Bahrain under its production sharing agreement with the Bahrain National Oil Company.
 For the prior fiscal year ended Dec. 31, 1990, Harken reported a net loss from continuing operations of $8.3 million, or $.37 per common share (after accrued preferred stock dividends), on total revenues from continuing operations of $21.8 million.
 Harken reported a $3.0 million net loss from discontinued operations during 1991 ($.07 per common share). The 1990 net loss from discontinued operations was $32.9 million ($1.01 per common share). The operations of E-Z Serve Corporation (AMEX: EZS) and those of Tejas Power Corporation (AMEX: TPC), two former subsidiaries of Harken, are accounted for as discontinued operations because upon completion of a rights offering plan effective April 30, 1991, EZS and TPC became independent public companies.
 Harken's total 1991 net loss, including the results from the discontinued operations, was $15.6 million ($.38 per common share). The total net loss for 1990, including the results from discontinued operations, was $41.2 million ($1.38 per common share).
 Harken's revenue decreases resulted from the following:
 -- Changes in the reporting of oil and gas operations. During the fourth quarter of 1990, Harken transferred its oil and gas properties to Harken Anadarko Partners, L.P., ("HAP"), a limited partnership with an affiliate of Aeneas Venture Corporation ("Aeneas"), a significant Harken stockholder.
 Because Harken owns a minority interest in HAP, Harken includes its share of HAP's net results, but does not report gross oil and gas sales. In 1990, Harken reported oil and gas revenues totalling $6.9 million. Harken's share of the HAP net loss in 1991 was $3.0 million compared to a $39,000 net profit in 1990. HAP's results for 1991 were significantly impacted by a decrease to the carrying value of is oil and gas reserves due to product prices. Harken further announced today it has suspended drilling activity in HAP due to depressed natural gas prices and, along with Aeneas, is considering various alternatives for maximizing the value to be derived from HAP's oil and gas reserves.
 -- Decreased oilfield service revenues. For 1991, these revenues totalled $3.6 million compared to $11.0 million for 1990. The revenue declines reflect the indefinite suspension of contract drilling activities as of April 1991 because of decreased demand and increased competition, particularly in the Austin Chalk trend of South Texas where Harken's horizontal drilling activities had been focused. Harken's well servicing operations, however, continue to be active in Texas.
 Harken also continues to pursue opportunities to expand and redirect its corporate capacity into international oilfield service and exploration projects.
 Harken's total costs and expenses from continuing operations during 1991 were $19.4 million, representing a 36 percent decrease from the prior year. The major components of this decrease were:
 -- Harken's previously-announced decision in late 1991 to write down its carrying value in certain drilling rigs and related domestic assets by $7.1 million. These assets were determined to be suitable only for domestic drilling activities and, thus, would not be a part of Harken's operating plans for the near future due to Harken's decision to focus on the international contract drilling industry.
 -- Lower oilfield service operating expenses. As a direct result of the temporary suspension of the contract drilling operations, these expenses were significantly lower than in the prior year, totalling $2.4 million in 1991 compared to $8.6 million during 1990.
 -- Lower oil and gas operating costs, depreciation and amortization. These costs decreased 82 percent during 1991 when compared to the prior year as a direct result of the transfer by Harken of its domestic oil and gas properties to HAP, as discussed above.
 -- Lower general and administrative expenses. These expenses decreased 46 percent during 1991 when compared to the prior year due primarily to streamlining and cost reduction measures consistent with Harken's reduction in size after the rights offering was completed.
 -- Lower interest expense. Interest expense decreased to $230,000 during 1991, a 92 percent decrease from 1990 primarily due to the transfer of Harken's bank debt to HAP and the elimination of intercompany borrowings related to discontinued operations.
 HARKEN ENERGY CORPORATION
 Selected Financial Information
 (in 000's of dollars, except for per share amounts)
 Periods ended: 4th Quarter 12 Months
 1991 1990 1991 1990
 Revenues from continuing
 operations 1,424 5,536 6,774 21,759
 Net loss from continuing
 operations (11,411) (5,985) (12,606) (8,304)
 Net loss from continuing
 operations per common
 share (.27) (.22) (.31) (.37)
 Net loss from discontinued
 operations -- (5,440) (2,997) (32,884)
 Net loss from discontinued
 operations per common share -- (.17) (.07) (1.01)
 Weighted average common shares
 outstanding 44,001 34,131 42,519 32,533
 NOTE TO EDITORS: Harken Energy Corporation explores for, develops and produces oil and gas reserves domestically and internationally. Harken also provides oilfield services.
 -0- 3/30/92
 /CONTACT: Dale Brooks of Harken Energy, 817-695-4900/
 (HEC) CO: Harken Energy Corporation ST: Texas IN: OIL SU: ERN


TS -- NY020 -- 2739 03/30/92 09:28 EST
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Date:Mar 30, 1992
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