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HARKEN ANNOUNCES THIRD QUARTER RESULTS/FILING OF REGISTRATION STATEMENT

HARKEN ANNOUNCES THIRD QUARTER RESULTS/FILING OF REGISTRATION STATEMENT
 DALLAS, Nov. 8 /PRNewswire/ -- Harken Energy Corporation ("Harken") (AMEX: HEC) of Dallas today reported a net loss of $633,000 ($.02 per common share after accrued preferred stock dividends) for the third quarter ended Sept. 30, 1991, compared to a net loss of $5,745,000 ($.20 per common share after accrued preferred stock dividends) for the third quarter ended Sept. 30, 1990. The third quarter results bring the current year-to-date loss to $4,192,000 ($.11 per common share after accrued preferred stock dividends) compared to $29,763,000 ($1.01 per common share after accrued preferred stock dividends) for the same period of 1990. Harken reported positive net cash provided by continuing operating activities for nine-month periods in both years.
 The 1991 nine-month results include a net loss from discontinued operations of $2,997,000 ($.07 per common share after accrued preferred stock dividends). The third quarter and nine-month periods of 1990 included net losses from discontinued operations of $3,574,000 ($.11 per common share after accrued preferred stock dividends) and $27,444,000 ($.85 per common share after accrued preferred stock dividends), respectively. Discontinued operations consist 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 third quarter 1991 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.
 For the third quarter 1991, Harken reported total revenues from continuing operations of $1,368,000 compared to $5,576,000 for the third quarter of 1990. Revenues from continuing operations were $5,350,000 during the first nine months of 1991 compared to $16,223,000 during the same period of the previous year. These revenue decreases result 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 Aeneas Venture Corporation, 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 the prior year, Harken reported third quarter oil and gas revenues totalling $2,230,000 and nine-month oil and gas revenues totalling $5,847,000.
 -- Decreased oilfield service revenues. For the third quarter of 1991, these revenues totalled $441,000 compared to $2,697,000 in the 1990 third quarter. For the nine-month periods, these revenues totalled $3,025,000 in 1991 and $7,379,000 in 1990. The revenue declines reflect the temporary 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 service operations, however, continued to be active in Texas and Oklahoma.
 Harken's total costs and expenses from continuing operations for the third quarter of 1991 were $2,001,000, representing a 74 percent decrease from the same period a year ago. For the nine-month period ended September 30, 1991, such costs and expenses were $6,545,000, a 65 percent decrease from 1990. The major components of these decreases were:
 -- 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 $274,000 for the third quarter and $2,009,000 for the nine-month period of 1991. During 1990's third quarter, these costs were $2,171,000 while for the nine-month period they totalled $5,479,000.
 -- Lower oil and gas operating costs, depreciation and amortization. These costs decreased 85 percent and 82 percent, respectively, for the three and nine-month periods of 1991 compared to the same periods a year ago 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 35 percent and 39 percent, respectively, for the three-month and nine-month periods of 1991 compared to the same periods a year ago due primarily to streamlining a cost reduction measures consistent with Harken's reduction in size after the rights offering was completed.
 -- Lower interest expense. Interest expense decreased 96 percent and 89 percent, respectively, for the three-month and nine-month periods of 1991 compared to the same periods a year ago primarily due to the transfer of Harken's bank debt to HAP and the elimination of intercompany borrowings related to discontinued operations.
 During the third quarter Harken also continued its progress toward the drilling of its first exploratory test well offshore Bahrain under its production sharing agreement with the Bahrain National Oil Company. The dredging and artificial island construction processes, which are preparatory to drilling the initial well, are now substantially completed. A Deutag land drilling rig will be used for drilling. Harken continues to anticipate an early November spudding of the first well.
 In further news, Harken announced that is has sent for filing on Monday, Nov. 11, 1991, with the Securities and Exchange Commission a registration statement(A) covering 14,171,451 shares of its currently outstanding common stock. As previously announced, the proposed registration(A) has been undertaken by Harken pursuant to the request of EZS under EZS's demand registration rights and includes shares held by EZS and certain other stockholders.
 (A) Note: A registration statement relating to these securities has been sent for filing with the Securities and Exchange Commission on Monday, Nov. 11, 1991, but will not be effective at that time. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The offering and sale of any of these securities will be made only by means of a prospectus. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
 Copies of the written prospectus, when available, can be obtained by contacting Dale Brooks, c/o Harken Energy Corporation, 2505 North Highway 360, Suite 800, Grand Prairie, Texas 75050.
 Harken Energy Corporation explores for, develops and produces oil and gas reserves domestically and internationally. Harken also provides contract drilling and other oilfield services. On Jan. 30, 1990 Harken announced that it had signed a production sharing agreement with the Bahrain National Oil Company covering certain of Bahrain's offshore territories. On July 23, 1990, Harken entered into a joint operating agreement with Bass Enterprises Production Company ("Bass"), whereby Bass will pay for the initial exploratory drilling activities offshore Bahrain.
 -0- 11/8/91
 /CONTACT: Dale Brooks of Harken Energy, 817-695-4900/
 (HEC) CO: Harken Energy Corporation ST: Texas IN: OIL SU: ERN JT -- NY077 -- 2786 11/08/91 18:43 EST
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Date:Nov 8, 1991
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