Harvest Natural Resources (HNR) Posts Q4 Loss of 2c/Share

Harvest Natural Resources (NYSE: HNR) reported Q4 EPS of ($0.02), $0.06 better than the analyst estimate of ($0.08).

The Company is currently experiencing severe liquidity constraints brought about by the failure of the Venezuelan government to approve Harvest's sale of its Venezuelan asset, the failure to pay dividends and other contractual breaches related to Petrodelta. The Company is attempting to raise funds in both the debt and equity markets to fulfill its immediate operating requirements. Harvest is also consulting with professionals in the area of restructuring and reorganization in the event the Company is not able to obtain sufficient funding to pay its expenses.

James Edmiston, President and Chief Executive Officer of Harvest stated, "2014 started out as a promising year for Harvest shareholders with the announcement of the sale of our Venezuelan assets, elimination of debt, and acquisition of the new 3-D seismic in Gabon, but ended in disappointment, as once again, the Venezuelan government withheld its approval for the sale of our Venezuelan assets to Petroandina. While the 3-D seismic in Gabon has confirmed our best expectations for the prospectivity in the outboard portion of the block, the collapse in oil prices have rendered the earlier envisaged development of our discovered resources on the block economically marginal while complicating our ability to market the asset on the strength of the larger outboard prospectivity, especially in the timeframe afforded given the failure of the Venezuela sale."

Edmiston continued, "These factors have presented the Company with serious challenges, especially in terms of near-term liquidity. We remain focused on protecting and realizing value from Harvest's investment in Venezuela and Gabon, but must first focus on securing the funding necessary to meet our ongoing operating expenses, which have been substantially reduced over the past 18 months. Further, we have begun discussions with PDVSA toward reaching an agreement for an amicable exit from Petrodelta, however, those discussions are in the early stages and no assurance can be given at this time as to whether those efforts will bear fruit. If those discussions do not lead to a fair and equitable solution for Harvest's shareholders, we expect to move forward on the ICSID arbitration path as previously announced, to the extent that it is legally permissible and that it continues to be in the best interests of our shareholders."

For earnings history and earnings-related data on Harvest Natural Resources (HNR) click here.

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