HEC Harken Energy Corp

Harken Energy Provides Domestic Operations Update DALLAS, April 5 /PRNewswire-FirstCall/ -- Harken Energy Corporation's (AMEX:HEC) wholly owned subsidiary, Gulf Energy Management Company ("GEM"), has released updated production figures and well completion status for its domestic oil and gas operations, which are located primarily along the onshore and offshore Texas and Louisiana Gulf Coast. Currently, GEM's net domestic production rate is at approximately 7.8 million cubic feet equivalent of natural gas per day. GEM is committed to the continuing development of its domestic operations and has increased its 2005 budgeted capital expenditures to approximately $16 million to grow its domestic production and reserves. The following field data updates the status of GEM's domestic operations through the end of March 2005. Lapeyrouse Field, Terrebonne Parish -- Louisiana GEM continues to participate in an active field redevelopment program that has included an interest in seven successful wells in the Lapeyrouse field since the fourth quarter of 2003. GEM holds an average non-operated working interest of 10% in each of the seven wells that are together producing at a combined gross rate of 17.5 million cubic feet equivalent per day, for a net production to GEM of approximately 1.1 million cubic feet equivalent per day. Production is down for this field from a combined gross rate of approximately 24 million cubic feet equivalent per day (or approximately 1.6 million cubic feet equivalent per day net to GEM) as reported in our November 10, 2004, domestic operations update. This is primarily the result of mechanical problems on two of the wells. A workover program is planned in the second quarter of 2005. An eighth well has been drilled and logged productive. Production casing has been set and a completion attempt is planned for the second quarter 2005. A ninth well has been proposed and approved to a total depth of about 15,000' true vertical depth (TVD) for drilling as soon as a rig becomes available. GEM holds an approximately 39% operated working interest in this ninth well. We anticipate a rig becoming available during the second or third quarter of 2005. Main Pass, Plaquemines Parish -- Louisiana GEM has approved initiating the repair of an additional compressor that has been off line for the past four years. This investment will allow an increase in gas lift capacity in the Main Pass Field and will permit GEM to return certain wells to production once the additional compressor is back on line. GEM holds an average 90% working interest in the Main Pass field. GEM continues its geological and geophysical study, utilizing the recently acquired license to 21 square miles of 3D seismic data covering the area held by production leases. Raymondville, Willacy and Kenedy Counties -- Texas Even though GEM continues to participate in an active recompletion campaign, it is expected that field production has peaked. GEM's current net production is about 1.45 million cubic feet equivalent per day. GEM has an average 27% non-operated working interest in this field. Lake Raccourci Field, Lafourche Parish -- Louisiana The Lake Raccourci field production rate is presently at approximately 6.5 million cubic feet per day, gross, which is down from our last reported production rate of approximately 8.5 million cubic feet per day. The decline in production is directly attributable to the State Lease 1480 #2 well that has only produced intermittently since it was shut in for Hurricane Ivan last September, representing a loss of about 2.2 million cubic feet equivalent per day, gross. GEM has attempted to bring the well back onto production several times since the extended shut in period, and each time it has produced for a shorter run before it is unable to flow due to increased water production and decreased pressure. A recompletion attempt is being considered for the well. GEM holds a 40% operated working interest in each of its Lake Raccourci wells. GEM is presently seeking industry partners to drill a field extension well. This prospect is a result of continuing interpretation of GEM's 60 square mile reprocessed 3D seismic database. New 3D Seismic Licenses Acquired -- Louisiana GEM has acquired a license covering approximately 155 square miles of 3D seismic data in three different surveys across south Louisiana. The largest database is in Terrebonne Parish and includes approximately 70 square miles. Approximately 56 square miles is in Cameron Parish, and approximately 29 square miles in Iberville Parish. A number of leads have developed in this continuing study. The process of cataloging and prioritizing is underway. New Mineral Interests Acquired -- Texas and Louisiana GEM acquired mineral interests in 6 drill-ready prospects in Texas and Louisiana during the second half of 2004. An update for each of the six prospects comprised of South Beach Field, Branville Bay Field, Delarge Field, Point-a-la-Hache Field, Allen Ranch Field, and S.E. Nada Field is provided below. South Beach Field, Chambers County -- Texas GEM has a non-operated working interest of 9.375% in this area. The initial well was drilled to a true vertical depth of 10,750 feet during the forth quarter of 2004. The well was logged productive in two sands. The well has been completed in the lower sand. First production was in late December 2004. Current gross production is about 2.7 million cubic feet per day and 240 barrels of condensate per day. A second well has been drilled and logged productive. Completion attempt and subsequent flow tests are now in progress. Branville Bay Field, Plaquemines Parish -- Louisiana GEM has a non-operated working interest of 12.5% in this area. The initial well was drilled to a total depth of 7,400 feet in the fourth quarter of 2004. The well was dually completed in the two logged productive sands. First production was in February 2005, and is currently producing a total of about 500 barrels of oil per day, and .8 million cubic feet per day, gross. A second well has been proposed and approved to a total depth of 8,000 feet, and is expected to spud as a rig becomes available in the second quarter of 2005. Delarge Field, Terrebonne Parish -- Louisiana Initial well was drilled to a total depth of 11,500 feet true vertical depth in December 2004, logged not productive, plugged and abandoned. GEM has a non-operated working interest of 12.5% in this area. Geological and geophysical studies continue to evaluate other prospect leads in the field. Point-a-la-Hache Field, Plaquemines Parish -- Louisiana The initial well, State Lease 18077 #1, was drilled to a true vertical depth of 10,300 feet in mid December 2004. The well was logged productive, completed and tested at a rate of 200 barrels of oil per day, and 0.8 million cubic feet per day, in the lower sand of two sands that both logged productive. First production is expected in the second quarter of 2005. GEM maintains a 25% operated working interest in the area. Allen Ranch Field, Colorado County -- Texas The initial well, the Hancock Gas Unit #1, was drilled to a measured depth of 16,983 feet in late January 2005. The well was logged productive in four sands, and is in the process of completing, perforating, and hydraulic fracturing. GEM owns an 11.25% non-operated working interest in the area. First production is planned for May, 2005. Southeast Nada Field, Colorado County -- Texas GEM has a 17% non-operated working interest in this area. The initial well, the Popp et al #1, was drilled to a measured depth of 10,030 feet in late March 2005. The well was logged productive in two sands, and is in the process of completing, and subsequent flow testing. First production is expected in the latter part of the second quarter of 2005. Coalbed Methane Projects -- Indiana and Ohio GEM has entered into two significant Exploration and Development Agreements in Indiana and Ohio. Each prospect provides for an area of mutual interest of approximately 400,000 acres. The agreements provide for a phased delineation, pilot and development program, with corresponding staged expenditures. A contracted third party with a long track record in successful coalbed methane development provides expert advice for these projects. "The addition of large potential coalbed methane prospects to our strategic plan offers long term balance to our strong Gulf Coast portfolio of high rate, quicker depletion prospects," said Jim Denny, President of Gulf Energy Management Company. "Our high-percentage completion rate continues in our core areas, allowing us to add production at reasonable finding costs. We continue to add prospects and manage our growth opportunities with a combination of in-house and outsourced technical expertise." Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries. Additional information may be found at the Harken Energy Web site, http://www.harkenenergy.com/, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200. Certain statements in this announcement including statements regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production may be regarded as "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management's current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K/A dated April 5, 2005. Although Harken believes that the expectations reflected in the forward-looking statements of this announcement are reasonable, it can give no assurance that such expectations will prove to be correct or that unforeseen developments will not occur. Harken undertakes no duty to update or revise any forward- looking statements. Actual results may vary materially. Contact: Bevo Beaven, Vice President Bill Conboy, Senior Account Executive CTA Public Relations 303-665-4200 DATASOURCE: Harken Energy Corporation CONTACT: Bevo Beaven, Vice President, , or Bill Conboy, Senior Account Executive, , both of CTA Public Relations, +1-303-665-4200, for Harken Energy Corporation Web site: http://www.harkenenergy.com/

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