![]() EnerCom's The Oil & Gas Conference 18 August 12, 2013 Exhibit 99.1 ® |
![]() Forward Looking Statements NYSE: HNR www.harvestnr.com 2 Cautionary Statements: Certain statements in this presentation are forward-looking and are based upon Harvest’s current belief as to the outcome and timing of future events. All statements other than statements of historical facts including planned capital expenditures, increases in oil and gas production, Harvest’s outlook on oil and gas prices, estimates of oil and gas reserves, business strategy and other plans, estimates, projections, and objectives for future operations, are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include Harvest’s concentration of assets in Venezuela; timing and extent of changes in commodity prices for oil and gas; political and economic risks associated with international operations; and other risk factors as described in Harvest’s Annual Report on Form 10-K and other public filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, Harvest’s actual results and plans could differ materially from those expressed in the forward-looking statements. Harvest undertakes no obligation to publicly update or revise any forward-looking statements. Harvest may use certain terms such as resource base, contingent resources, prospective resources, probable reserves, possible reserves, non-proved reserves or other descriptions of volumes of reserves. These estimates are by their nature more speculative than estimates of proved reserves and accordingly, are subject to substantially greater risk of being actually realized by the Company. Investors are urged to consider closely the disclosure in our 2012 Annual Report on Form 10-K and other public filings available from Harvest at 1177 Enclave Parkway, Houston, Texas, 77077 or from the SEC’s website at www.sec.gov. Contingent resources are resources that are potentially recoverable but not yet considered mature enough for commercial development due to technological or business hurdles. Prospective resources are those quantities of hydrocarbons which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. They indicate exploration opportunities and development potential in the event a discovery is made and should not be construed as contingent resources or reserves. The contingent and prospective resources included in this presentation were internally developed by Harvest Natural Resources. |
![]() About Harvest NYSE: HNR www.harvestnr.com 3 Market Data Exchange/Ticker NYSE: HNR Market Capitalization * $ 174 MM Enterprise Value $ 243 MM Cash (06/30/2013) $ 9.8 MM Debt (06/30/2013) $ 79 MM Shares Outstanding 39.5 MM Institutional Ownership 75% * As of August 7, 2013 |
![]() Highlights NYSE: HNR www.harvestnr.com 4 Venezuela continues strong production growth Up 16% in 2012 Current production 43,000 bopd, up 19% vs. 2012 average “2 for 2” Exploration in pre-salt offshore Gabon Ruche discovery in 2011 Tortue discovery in 2013 49 million bbl oil discovered on block Large scale outboard potential identified Proven hydrocarbon system onshore Indonesia Oil and gas encountered in two exploration wells 3 rd well expected to spud 1 Q 2014 Process underway for Gabon and Indonesia farmout/sale Colombia entry st |
![]() Venezuela - Petrodelta NYSE: HNR www.harvestnr.com 5 32% Equity Interest in Petrodelta Six fields, 9.9 billion barrels of gross oil-in-place Growth underway Current production rate of 43,000 bopd Successful development program ongoing in Temblador, Isleño and El Salto El Salto producing 20,000 bopd Isleño producing 2,200 bopd from three horizontal wells Five drilling rigs operating plus one new rig assembling on location Operations generating solid financial performance 2012 CFO of $248 million (gross) $84 million in dividends (net to HNR) received since 2008 $9.8 million (net to HNR) in dividends declared and receivable Cash Surplus Jan 2010 - 2013 Q2: $90 million net to HNR 32% interest 2009 2010 2011 2012 2013 1H Cash From Operations ($MM, Gross) 140 192 196 248 126 Production (MMBOE, Gross) 8.6 8.9 11.8 13.5 7.1 Proved Reserves (MMBOE, net to Harvest) 46.3 50.0 43.3 38.4 36.9 2P Reserves (MMBOE, net to Harvest) 83.3 103.6 103.8 100.2 98.7 3P Reserves (MMBOE, net to Harvest) 224.3 220.6 210.5 204.6 203.1 South Monagas Unit (SMU): New Fields: El Salto, Temblador, Isleño Total Area Petrodelta’s Fields: 1000.03 Km Uracoa, Tucupita, Bombal 2 |
![]() Petrodelta Production NYSE: HNR www.harvestnr.com 6 # of Drilling Rigs New Fields SMU Production Outlook 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013 Outlook 41,300 BOPD average full year 38,211 BOPD average Q2 2013 43,000 BOPD current $210 million Capex for 2013 New fields Infrastructure 6 rigs at year-end for development wells 25 new oil wells 60 50 40 30 20 10 0 6 5 4 3 2 1 0 Conversion Process |
![]() Petrodelta Reserves Valuation NYSE: HNR www.harvestnr.com 7 (1) Net to HNR after 33.33% royalty At December 31, 2012 Six fields with 9.9 billion barrels gross OOIP 38.4 million BOE net Proven, 166.2 million BOE net Probable and Possible 2013 Drilling Program at El Salto, Temblador and Isleño fields will continue to drive reserve additions and increase production Petrodelta Reserves Value (After Tax (2) - Net to HNR 32% Interest ) (2) After Venezuelan Income Taxes but before U.S. Income Taxes 1,600 1,800 1,200 1,400 800 1,000 600 400 200 0 NPV10 @ WTI = $50/BBL NPV10 @ WTI = $70/BBL NPV10 @ WTI = $100/BBL Possible Probable Proved Ryder Scott reserve report @ 12/31/2012 WTI = $94.2/BBL, Petrodelta oil price = $95.9/BBL (Net to Harvest Natural Resources 32% Interest and net of 33.33% royalties) Net Resource Base (1) Proved Probable Oil, MMBBL 34.5 54.7 99.5 Gas, BCF 23.2 42.9 29.4 Total, MMBOE 38.4 61.8 104.4 Proved 2P 3P Reserves (MMBOE) (1) 38.4 100.2 204.6 After – Tax PV10 ($MM): As of 12/31/2012: 450 917 1,647 Per BOE $11.7 $9.2 $8.1 Possible |
![]() Gabon – Dussafu Block NYSE: HNR www.harvestnr.com 8 GABON Lucina Etame Yombo Ruche Walt Whitman Moubenga GMC-1X Tortue Avouma Ebouri North Tchibala South Tchibala HNR PROPERTIES GAMBA PROSPECTS/LEADS OTHER PROSPECTS/LEADS OIL FIELDS GAS DISCOVERY 680,000 acre PSC, Offshore Gabon 66.667% operated interest 49 MMBO mean contingent resources discovered 3 Exploration Period • Extends to May 27, 2016 • Work commitments completed Key HNR Activities to Date Tortue Discovery (2013) • 28 MMBO Mean Contingent Resources Ruche Discovery (2011) • 14 MMBO Mean Contingent Resources Development planning nearing completion • POD to be submitted 3Q 2013 Central Dussafu 3D acquired 2011 • Final PSDM processing complete Outboard 3D Seismic planned 2013 • Large Dentale structures seen on 2D • Analogous to nearby Diaman prospect currently being drilled by Total rd |
![]() NYSE: HNR www.harvestnr.com 9 Tortue Exploration Well DTM-1 Oil discovery in pre-salt Gamba and Dentale reservoirs, 53m net pay Appraisal sidetrack DTM-1 ST1, 20m net pay in Dentale Well suspended pending future appraisal and development studies DTM-1 Gamba Structure Dentale Structure DTM-1 ST1 N Tortue Marin-1 Reservoir STOIIP (MMBO) Contingent Resources (MMBO) Mean P10 Mean P10 Gamba 24 42 9 16 Dentale 72 129 19 39 Total 96 171 28 55 Dussafu – Tortue Discovery |
![]() Dussafu - Ready for Development NYSE: HNR www.harvestnr.com 10 Work-In-Progress Subsurface engineering Project and facilities engineering Logistics planning Well completion design Equipment selection Expect FEED complete 3Q 2013 First production by mid 2015 Project sanction by partners 2013 Long lead items to be ordered Declaration of commerciality Initial Tortue wells drilled in 2014 FPSO installed 1Q 2015 Continued development through 2015-16 Well and facility layout for sub-sea tiebacks to FPSO located at Tortue Field |
![]() Dussafu Resource Potential NYSE: HNR www.harvestnr.com 11 Resource Type Mean MMBO Contingent Resource 49 13 Prospects (unrisked) 201 16 Leads (unrisked) 765 TOTAL 1015 Name Formation Unrisked STOIIP Unrisked Recoverable Reserves Overall Lead/Prospect COS Oil/Condensate (MMBBl) P10 Mean P10 Mean 2 Tchibobo NE Gamba 43 25 14 8 40% 2 Tchibobo NE Mid Dentale 109 60 33 18 40% 12 Moubenga East Gamba 113 70 38 23 35% 12 Moubenga East Mid Dentale 145 64 33 14 12% 11 Moubenga updip Gamba 34 23 11 8 29% 13 Bougainvillea N amplitude Gamba 48 28 16 9 52% 14 Bougainvillea N NW amplitude Gamba 26 19 9 6 45% 8 Hibiscus Updip Gamba 39 23 13 7 30% 9 Mupale Gamba 118 70 39 22 28% 9 Mupale Mid Dentale 107 51 25 11 27% 10 Hibiscus North Gamba 144 74 47 24 26% 10 Hibiscus North Mid Dentale 94 41 21 9 16% 23 Gamba 59 40 20 13 34% 23 Mid Dentale 46 23 11 5 41% 25 NW Walt Whitman Gamba 32 20 11 7 39% 28 West M'Bya Gamba 28 19 9 6 35% 38 SE Walt Whitman Gamba 22 14 7 5 39% 39 SSE Walt Whitman Gamba 30 19 10 6 39% 3 Tchibobo N West Gamba 112 53 37 17 18% 4 Tchibobo N NW Gamba 39 19 13 6 18% 6 Dussafu West Gamba 118 62 39 20 23% 15 Gamba 74 51 25 17 20% 18 Gamba 99 48 33 16 20% 18 Mid Dentale 91 38 21 8 12% 19 Dussafu East Gamba 89 44 30 14 26% 19 Dussafu East Mid Dentale 197 88 45 20 17% 26 Jedi West Gamba 89 53 29 17 27% 42 Hibiscus South Gamba 26 14 9 4 23% 49 Tchibobo West Gamba 37 25 13 8 14% 31 Mukombo Combined M'Bya/Lucina 143 81 23 12 13% Outboard leads A Gamba Lead 43 (Ruche SW) Gamba 44 27 15 9 14% A Dentale Lead 5 Dentale 137 65 41 19 19% B Gamba Lead 45 (Ruche SE) Gamba 54 34 18 11 14% B Dentale Lead 4 Dentale 406 171 121 51 20% C Dentale Lead 3 Dentale 307 157 92 47 19% D Gamba Lead D1 Gamba 27 17 9 6 14% D Gamba Lead D2 Gamba 14 9 5 3 14% D Dentale Lead 1 Dentale 1643 698 493 209 17% E Gamba Lead Gamba 75 50 25 16 14% E Dentale Lead 2 Dentale 817 415 245 124 19% F Dentale Lead 6 Dentale 800 369 241 111 15% Exploration Prospects and Leads |
![]() Dussafu Outboard Leads NYSE: HNR www.harvestnr.com 12 Dussafu outboard leads in relation to nearby Dentale exploration activity Total / Cobalt / Marathon drilling Diaman-1 targeting 250- 800 MMBO Shell / CNOOC expected to drill 2 well in BC9/10 in 2013 Vaalco / Sasol / Sinopec drilling Ovoka-1 well targeting 140 MMBO Acquiring 3D is key to de-risking outboard leads Dussafu Outboard Leads Based on 2D seismic BC9/10 Diaman-1 At TD 250-800 MMBO Ovoka Drilling 140 MMBO Lead A 30-50 MMBO Lead C 50-100 MMBO Lead F 110-250 MMBO Lead E 140-270 MMBO Lead B 60-140 MMBO Lead D 200-500 MMBO |
![]() NYSE: HNR www.harvestnr.com 13 South Gabon Pre-Salt Structures Tortue-1 Tortue Discovery (Harvest 2013) Gamba & Dentale structures formed by listric normal faults detaching on older Melania shale Dentale consists of stacked lacustrine and fluvial deltaic channel systems Diaman Prospect (Total/Marathon/Cobalt) Well targeted stacked Gamba & Dentale reservoirs Large faulted anticline Dussafu Outboard Leads (Harvest) Defined by multiple 2D lines Stacked Gamba and Dentale potential Closures are larger than seen on inboard portion of block 3 miles Marathon Oil Investor Presentation Top Salt Top Gamba Dentale Marker Madiela 3 miles Dussafu Outboard Lead D |
![]() Dussafu Potential Value, Net to Harvest NYSE: HNR www.harvestnr.com 14 Exploration Program Mean Risked Value: $947 $317 $167 $31 $35 $284 $663 $1,497 Contingent Resources Mean Value: $550 Total Mean Value: $1497 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Tortue Ruche Walt Whitman Moubenga Inboard Expl Mean Outboard Expl Total Resource Mean Mean Value |
![]() NYSE: HNR www.harvestnr.com 15 Indonesia - Budong-Budong 611,943 acre PSC 71.5% WI - Onshore West Sulawesi 4 year extension to Jan 2017 Harvest became operator in April 2013 Proven Petroleum System Lariang and Karama sub-basins Source kitchen known Extensive oil and gas seeps Undrilled structures on seismic and surface anticlines LG-1 and KD-1 wells drilled in 2011-12 Oil and gas encountered in overpressured sands Farming Down Madjene Prospect (MJN-1) Prospect and Leads Inventory Mean MMBO Prospects (13) 660 Leads (10) In-progress TOTAL 660 HNR LICENSE BACK THRUST PROSPECTS/LEADS FOLD BELT LEADS STRATIGRAPHIC PROSPECTS/LEADS |
![]() Budong-Budong Madjene Prospect NYSE: HNR www.harvestnr.com 16 Madjene Prospect Thrusted anticline Stacked reservoir targets Pliocene and Miocene sands 96 MMBO total mean unrisked reserves MJN-1 well 1Q 2014 Unrisked Gross Reserves Mean MMBO P10 MMBO COS % Pliocene 490 Sand 44 74 30% Upper Miocene Sand 37 64 21% Middle Miocene Sand 15 27 20% TOTAL 96 165 |
![]() Colombia Entry NYSE: HNR www.harvestnr.com 17 HNR Farmin to VSM14 and VSM15 Blocks Signed agreements with operators of blocks Subject to approval of the Colombia ANH HNR 75% operated interest in both blocks* VSM 14 – 137,061 gross acres VSM 15 – 105,721 gross acres Phase 1 Exploration through Dec 2015 Investment Rationale Compelling unconventional and conventional potential 2000+ ft Cretaceous La Luna/Tetuan shales in synclines from 5,000-12,000 ft depths Thrust-related structures Favorable political and fiscal environment Favorable risk-reward Nearby infrastructure Emerging unconventional focus in Colombia Harvest prior unconventional success 2 years of studies on international unconventional Upper Magdalena Basin VSM 15 VSM 14 La Hocha Palermo Oil Pipeline * Harvest's acquisition of the Participating Interest and the transfer of operatorship on VSM14 and VSM15 are subject to the approval of the Colombia ANH COLOMBIA NEIVA San Francisco Dina Tenay Palo Grande Caguan Tello Antares Brisas Balcon Los Mangos La Canada 20km |
![]() Cretaceous Shale Characteristics NYSE: HNR www.harvestnr.com 18 VSM 15 VSM 14 1 2 Villeta TOC 2% 50-70 feet net pay 10-16% porosity 30-50 MMBO/sq mile La Luna TOC 3% 100-220 feet net pay 8-14% porosity 50-70 MMBO/sq mile Tetuan TOC 3.7% 100-230 feet net pay 8-12% porosity 50-90 MMBO/sq mile Total Cretaceous Section TOC 2-3.7% 250-550 feet net pay 8-16% porosity 130-210 MMBO/sq mile Villeta faulted out 3 1,160’ gross 1 2,040’ gross Cretaceous Shales on or near blocks VSM14-15 Villeta La Luna Tetuan 2 1,750’ gross Log analysis by NuTech Shale Vision HC filled porosity Permeability La Luna Tetuan 3 |
![]() NuTech Log Analysis Unconventional Reservoirs – Comparison NYSE: HNR www.harvestnr.com 19 Eagleford 1 1 La Luna Middle Mag Niobrara 3 3 Feet 100 200 300 350 0 VSM 14/15 La Luna VSM 14/15 Tetuan |
![]() Why Invest in Harvest? NYSE: HNR www.harvestnr.com 20 Significant Valuation Gap Currently trading at 1/3 of the after-tax proceeds from failed Petrodelta sale Trading at a discount to valuation of contingent resources for existing discoveries in Dussafu Block in Gabon Near-term development with first oil by first half 2015 High-impact exploration portfolio in pre-salt offshore Two blocks onshore Colombia in government approval stage Large scale potential in unconventional and conventional |