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HARKEN ANNOUNCES SECOND QUARTER RESULTS

 HARKEN ANNOUNCES SECOND QUARTER RESULTS
 DALLAS, Aug. 12 /PRNewswire/ -- Harken Energy Corporation (Harken)


(AMEX: HEC) of Dallas today reported a net loss of $30,000 ($0.00 per common share after accrued preferred stock dividends) for the second quarter ended June 30, 1992, compared to a net loss of $1,928,000 ($.05 per common share after accrued preferred stock dividends) for the second quarter ended June 30, 1991. The second quarter, 1992 results bring Harken's year-to-date loss to $102,000 compared to a net loss of $3,559,000 in the prior year's first six months.
 Results for the prior year include the results of discontinued operations which consisted of the gasoline marketing operations of E-Z Serve Corporation (AMEX: EZS) and the natural gas gathering and marketing operations of Tejas Power Corporation (AMEX: TPC). The 1992 results do not include results from discontinued operations because, effective with the closing of the joint rights offering by EZS and TPC as of April 30, 1991, EZS and TPC became independent public companies. The 1991 second quarter and six month results include net losses from discontinued operations of $1,473,000 and $2,997,000, respectively.
 Total revenues from continuing operations were $1,385,000 for the second quarter of 1992 compared to $1,174,000 for the second quarter of 1991. For the first six months of 1992, revenues from continuing operations totaled $2,594,000 compared to $3,982,000 for the same period in 1991. The decrease in the comparative six month total revenue amounts is a reflection primarily of the following:
 -- Decreased contract drilling and well servicing revenues. While second quarter 1992 revenues from these activities were approximately the same as last year's second quarter, totaling $572,000 compared to $582,000 in 1991, the 1992 six month revenues from these activities decreased significantly to $1,057,000 from $2,584,000 in 1991. The decline was due primarily to Harken's decision to indefinitely suspend its contract drilling activities effective April 1991 due to decreased demand and increased competition for contract drilling services, particularly in the Austin Chalk trend of South Texas where Harken's horizontal drilling activities were focused. Harken's well servicing operations, however, continue to be active in Texas.
 Harken continues to pursue opportunities to expand and redirect its corporate capacity into international oilfield services and exploration projects. As a result of these efforts, a joint venture agreement was reached during the second quarter of 1992 with Organizacion de Cisneros, a Venezuelan conglomerate. The objectives of the joint venture will be to jointly pursue oil and gas opportunities in Venezuela.
 Harken's total costs and expenses from continuing operations of $1,415,000 for the second quarter of 1992 are 13 percent less than the same period a year ago. For the six month periods, total costs and expenses from continuing operations were $2,696,000 in 1992 compared to $4,544,000 in 1991. The major components of these decreases are discussed below.
 -- Lower oilfield service operating expenses. As a direct result of the indefinite suspension of the contract drilling operations, these expenses were significantly lower than in the prior year, totaling $251,000 for the second quarter of 1992 compared to $299,000 for the same period in 1991. For the first six months of 1992, these expenses totaled $513,000 compared to $1,735,000 for the same period in 1991.
 -- Lower general and administrative expenses. These expenses decreased 12 percent for the second quarter of 1992 compared to the same period a year ago due primarily to streamlining and cost reduction measures consistent with Harken's reduction in size after the rights offering was completed. For the six month periods, these expenses declined 15 percent in 1992 as compared to 1991.
 -- Lower interest expense. Interest expense decreased 72 percent for the second quarter of 1992 compared to the same period a year ago primarily due to the elimination of intercompany borrowings related to discontinued operations. For the six month periods, interest expense decreased 78 percent in 1992 as compared to 1991.
 -- Decreased equity in loss of partnership. Because Harken owns a minority interest in Harken Anadarko Partners, L.P. (HAP), a limited partnership with Aeneas Venture Corporation, a significant Harken shareholder, Harken includes its share of HAP's net results, but does not report gross oil and gas sales. Harken's share of the HAP loss for the first six months of 1992 decreased 56 percent compared to the same period in the prior year due largely to a reduction in HAP's operating expenses.
 HARKEN ENERGY CORPORATION
 Selected Financial Information
 (In 000's of dollars, except for per share amounts)
 Second Quarter Six Months
 1992 1991 1992 1991
 Revenues from continuing
 operations 1,385 1,174 2,594 3,982
 Net loss from continuing
 operations (30) (455) (102) (562)
 Net loss from continuing
 operations per common
 share -- (.02) (.01) (.02)
 Net loss from discontinued
 operations -- (1,473) -- (2,997)
 Net loss from discontinued
 operations per common
 share -- (.03) -- (.07)
 Weighted average common
 shares outstanding 44,319 44,020 44,330 41,094
 Harken Energy Corporation (Harken) (AMEX: HEC) explores for, develops and produces oil and gas reserves domestically and internationally. Harken also provides oilfield services.
 -0- 8/12/91
 /CONTACT: Dale Brooks of Harken Energy, 817-695-4900/
 (HEC) CO: Harken Energy Corporation ST: Texas IN: OIL SU: ERN


SM -- NY094 -- 9388 08/12/92 18:03 EDT
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Date:Aug 12, 1992
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