Harvest Natural Resources Announces Exclusive Negotiations to Sell Company Including Venezuela; Spin-off of Remaining Assets

  Harvest Natural Resources Announces Exclusive Negotiations to Sell Company
              Including Venezuela; Spin-off of Remaining Assets

PR Newswire

HOUSTON, Sept. 11, 2013

HOUSTON, Sept. 11, 2013 /PRNewswire/ --Harvest Natural Resources, Inc. (NYSE:
HNR) today announced it has entered into exclusive negotiations with
Pluspetrol Venezuela S.A., an entity belonging to one of the leading
exploration and production companies in Latin America, to sell the outstanding
shares of Harvest. Under the proposed transaction, at closing Pluspetrol
would retain Harvest's 32% interest in Petrodelta S.A., while Harvest's
non-Venezuelan assets would be contributed to a new company (SpinCo) that
would be spun off to Harvest's shareholders. SpinCo will be managed by
Harvest's current management team.

The total consideration for the proposed transaction with Pluspetrol is
approximately $373 million. This consideration for the proposed transaction
includes the assumption of the Company's long-term debt and certain other
obligations of the Company. The proposed transaction would be subject to
customary working capital adjustments upon closing.

The remaining assets to be spun-off will include Harvest's interest in Gabon,
Indonesia, Colombia, and China, as Harvest continues its current process to
maximize the value of these assets for its shareholders.

Harvest has agreed to negotiate exclusively with Pluspetrolfor a specified
period to reach a definitive merger agreement. There can be no assurance that
these negotiations will result in the proposed transaction or any other
transaction for the sale of Harvest or any of its assets.

The closing of the proposed transaction would be subject to, among other
things, approval by the Government of the Bolivarian Republic of Venezuela and
the shareholders of Harvest, as well as any applicable consents necessary to
effect the proposed transaction and the spin-off of any remaining assets.

While negotiations of the proposed transaction with Pluspetrol move forward,
Harvest will continue to explore interim capital raising opportunities to
obtain sufficient financing to fund its current projects and other corporate

James A. Edmiston, President and CEO of Harvest, said, "In spite of the
consistent, profitable growth of Petrodelta, Harvest has not received the
corresponding dividends from free cash flow required to fund our
diversification strategy. So, while our exploration programs have yielded
significant success in Utah, Gabon and Indonesia, our uncompetitive cost of
capital has placed our future growth possibilities at a distinct
disadvantage. This proposed sale and spin-off affords the Company and its
shareholders the ability to reap the benefits of our exceptional portfolio in
the near term."

Conference call

Harvest will hold a conference call at 2:00 p.m. Central Daylight Time on
Thursday, September12, 2013, during which management will discuss the
proposed transaction. The conference leader will be James A. Edmiston,
President and Chief Executive Officer. To access the conference call, dial
800-344-6698 or 785-830-7979, five to ten minutes prior to the start time. At
that time you will be asked to provide the conference number, which is
3073565. A recording of the conference call will also be available for replay
at 719-457-0820, passcode 3073565 through September 17, 2013.

The conference call will also be transmitted over the internet through the
Company's website at www.harvestnr.com. To listen to the live webcast, enter
the website fifteen minutes before the call to register, download and install
any necessary audio software. For those who cannot listen to the live
broadcast, a replay of the webcast will be available beginning shortly after
the call and will remain on the website for approximately 90 days. 

About Harvest Natural Resources:

Harvest Natural Resources, Inc., headquartered in Houston, Texas, is an
independent energy company with principal operations in Venezuela, exploration
assets in Indonesia, West Africa, China and business development offices in
Singapore and the United Kingdom. For more information visit the Company's
website at www.harvestnr.com.

Stephen C. Haynes
Vice President, Chief Financial Officer
(281) 899-5716

This press release may contain projections and other forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. They include estimates
and timing of expected oil and gas production, oil and gas reserve projections
of future oil pricing, future expenses, planned capital expenditures,
anticipated cash flow, timing and certainty of future transactions and our
business strategy. All statements other than statements of historical facts
may constitute forward-looking statements. Although Harvest believes that the
expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to have been correct.
Actual results may differ materially from Harvest's expectations as a result
of factors discussed in Harvest's 2012 Annual Report on Form 10-K and other
public filings.

SOURCE Harvest Natural Resources, Inc.

Website: http://www.harvestnr.com
Press spacebar to pause and continue. Press esc to stop.