Harvest Announces Oman Block 64 3rd Quarter Results

On October 29, 2011, Harvest spud the Mafraq South-A (MFS-A) exploration well on the Qarn Alam Block 64 onshore Oman. This is the first of a two-well exploratory program utilizing the MB Petroleum Services LLC Rig #113 drilling unit to explore for non-associated gas. Mafraq is a large salt-supported high with stacked reservoir targets in the Barik, Miqrat and Amin reservoirs, in both the footwall and hanging wall fault blocks comprising four segments (north, west, south and east). The MFS-A well will test the Mafraq South fault block, which has mean prospective resources of 1.25 TCF of gas with 46 MMBBLS of condensate. In the event of success the additional fault bounded segments contain further potential.

Mean prospective resources of the entire Greater Mafraq fault blocks is approximately 2.5 TCF of gas and 93 MMBBLS of condensate, with an upside of 4.3 TCF of gas and 169 MMBBLS of condensate. The geological chance of success for a discovery in the Barik at Mafraq South is estimated to be 28 percent. The MFS-A well will be drilled to a total vertical depth of approximately 12,000 feet to test coincident fault bounded dip closure at all three reservoirs. The dry hole cost for the well is estimated to be $8.45 million.

The second exploratory well, the Al Ghubar North (AGN-A), is projected to spud during the first quarter of 2012. This structure is a northeast-southwest trending fault block with stacked reservoir targets in the Barik, Miqrat and Amin Formations. Mean prospective resources of 960 BCF of gas and 54 MMBBLS of condensate in the Barik and 241 BCF of gas in the Miqrat have been calculated for the Al Ghubar North segment. The well will be drilled to approximately 10,300 feet to test coincident fault bounded dip closure at the three reservoir levels. The geological chance of success for a discovery in the Barik is estimated to be 23 percent. The dry hole cost for the well is estimated to be $8.11 million. Thirteen prospects and leads have been identified in the license with combined mean prospective resources of 8.9 TCF of gas and 350 MMBBLS of condensate. Harvest operates the Block 64 EPSA, holding an 80 percent interest.