Harvest Natural Resources authorizes sale of Gabon interests, company dissolution
HOUSTON -- Harvest Natural Resources, Inc., has announced that the Company's stockholders have authorized the sale of all Gabon interests to BW Energy Gabon Pte. Ltd, a private Singapore company (BW Energy Gabon). More than 92% of the shares voting on the sale voted to approve the transaction.
On Dec. 22, 2016, the Company announced that it and its wholly-owned subsidiary, HNR Energia B.V. (HNR Energia), had entered into a sale and purchase agreement, under which BW Energy Gabon would acquire HNR Energia's 100% interest in Harvest Dussafu B.V., which owns a 66.667% interest in the Dussafu production sharing contract covering a 210,000-acre area located offshore Gabon. At the closing of the sale, BW Energy Gabon will pay Harvest $32 million, subject to certain adjustments. About $2.5 million of the purchase price will be deposited in escrow for three months to satisfy certain post-closing claims under the sale and purchase agreement.
The closing of the sale remains subject to certain conditions, including approval of the Government of Gabon. The closing conditions are described in the sale and purchase agreement and the Company's public filings with the Securities and Exchange Commission.
The Company's stockholders also authorized the Company's dissolution. More than 92% of the shares voting on the dissolution proposal voted in favor of the proposal. Under the dissolution, liquidation and winding up process, which remains subject to the control of the Company's board and management, the proceeds from the Gabon transaction would be combined with other Harvest assets to be distributed to Harvest's stockholders, subject to the payment of certain costs and expenses. The Company currently expects to commence dissolution proceedings as soon as practicable after the closing of the sale of its Gabon interests.
