Exhibit 99.1
Global Hunter Securities 100 Energy Conference June 25, 2013
Forward Looking Statements
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.
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About Harvest
Market Data
Exchange/Ticker NYSE: HNR
Market Capitalization * $ 125 MM
Enterprise Value $ 173 MM
Cash (03/31/2013) $ 31 MM
Debt (03/31/2013) $ 79 MM
Shares Outstanding 39.5 MM
Institutional Ownership 75%
* As of June 20, 2013
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Highlights
Venezuela continues strong production growth
Up 16% in 2012
Current production 40,000 bopd, up 11% 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
Moving toward phased development
Proven hydrocarbon system onshore Indonesia
Oil and gas encountered in two exploration wells
Plans to monetize blocks in Gabon and Indonesia
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Venezuela - Petrodelta
South Monagas Unit (SMU): Uracoa, Tucupita, Bombal
New Fields: El Salto, Temblador, Isleño
Total Area Petrodelta’s Fields: 1000.03 Km2
Cash From Operations ($MM, Gross)
Production (MMBOE, Gross)
Proved Reserves (MMBOE, net to Harvest)
2P Reserves (MMBOE, net to Harvest(
3P Reserves (MMBOE, net to Harvest)
2009
2010
2011
2012
2013 Q1
140
192
196
248
63
8.6
8.9
11.8
13.5
3.5
46.3
50.0
43.3
38.4
37.7
83.3
103.6
103.8
100.2
99.5
224.3
220.6
210.5
204.6
203.9
32% Equity Interest in Petrodelta
Six fields, 9.9 billion barrels of gross oil-in-place
Growth underway
Current production rate of 40,000 bopd
Successful development program ongoing in Temblador, Isleno and EI Salto
EI Salto producing 20,000 bopd
Idleno producing 2,600 bopd from three horizontal wells
Three drilling rigs operating plus three new rigs 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 Q1: $90 million net to HNR 32% interest
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Petrodelta Production
2013 Outlook
42,000 BOPD average full year
37,346 BOPD average QI 2013
$210 million Capex for 2013
New fields Infrastructure
Increase in Rig Count
31 new oil wells
60 50 40 30 20 10 0
6 5 4 3 2 1 0
Barrels of Oil Per Day (000’s) (Gross)
Rigs
Conversion Process
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
# of Drilling Rigs SMU New Fields Production Outlook
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Petrodelta Reserves Valuation
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 Isleno fields will continue to drive reserve additions and increase production
Ryder Scott reserve report @ 12/31/2012 WTI = $94.2/BBL, Petrodelta oil price = $95.9/BBL
(Net to Harvest Natural Resources 32% Interest and net of 33.33% royalties)
Net Resource Base (1) Proved Probable Possible
Oil, MMBBL 34.5 54.7 99.5
Gas, BCF 23.2 42.9 29.4
Total, MMBOE 38.4 61.8 104.4
Proved 2P 3P
Reserves (MMBOE) (1) 38.4 100.2 204.6
After – Tax PV10 ($MM):
As of 12/31/2012: 450 917 1,647
Per BOE $11.7 $9.2 $8.1
(1) Net to HNR after 33.33% royalty
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Petrodelta Reserves Value
(After Tax (2)- Net to HNR 32% Interest)
1,800
1,600
1,400
1,200
1,00
800
600
400
200
0
Possible
Probable
Proved
NpV10
(2) After Venezuelan Income Taxes but before U.S. Income Taxes
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Gabon – Dussafu Block
680,00 acre PSC, Offshore gabon
66.667% operated interest
49 MMBO mean contingent resource discovered
3re Exploration Period
Extends to May 27, 2016
Work commitments completed
Key HNR Activities to Date
Development planning nering completion
POD to be submitted 3Q 2013
Tortue Discovery (2013)
28 MMBO Mean Contingent Resources
Reche Discovery (2011)
14 MMBO Mean Contingent Resources
3D Seismic
Dussafu 3D reprocessed PSDM
Central 3D reprocessed PSDM and merged with Inboard 3D PSDM
Outboard 3-D Planned and tendered.
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Dussafu – Tortue Discovery
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 ST1 DTM-1
Gamba Structure
Dentale Structure
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Tortue Marin-1
Contingent
STOIIP (MMBO) Resources
Reservoir (MMBO)
Mean P10 Mean P10
Gamba 24 42 9 16
Dentale 72 129 19 39
Total 96 171 28 55
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Dussafu - Ready for Development
Work-In-Progress
Subsurface Engineering
Project and Facilities Engineering
Logistics Planning
Well Completion Design
Equipment Selection
Expect FEED complete 3Q 2013
First production by late 2014
Project sanction by partners 2013
Long lead items to be ordered
Declaration of commerciality
Initial Tortue wells drilled in 2014
FPSO installed 3Q 2014
Continued development through 2015-16
Well and facility layout for sub-sea tiebacks to FPSO located at Tortue Field
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Dussafu Resource Potential
Exploration Prospects and Leads
Unrisked Unrisked
STOIIP Recoverable Overall
Name Formation Reserves Lead/Prospect
Oil/Condensate (MMBBl) COS
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%
Resource Type Mean MMBO
Contingent Resource 49
13 Prospects (unrisked) 201
16 Leads (unrisked) 765
TOTAL 1015
20 Km
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Dussafu Outboard Leads
Dussafu outboard leads compare with nearby 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 plan to drill Ovoka 2H 2013 targeting 140 MMBO
Outboard 3D is key to de-risking this potential further
BC9/10
Ovoka
2H 2013 140 MMBO
Diaman-1 spud 17th April 250-800 MMBO
Dussafu Outboard Leads Based on 2D seismic
Lead B
60-140 MMBO
Lead A
30-50 MMBO
Lead D 200-500 MMBO
Lead C
50-100 MMBO
Lead F 110-250 MMBO
Lead E 140-270 MMBO
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Dussafu Potential Value, Net to Harvest
@ 10% discount rate
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
Total Mean Value: $1497
$1,497
$663
Exploration Program Mean Risked Value: $947
$284
$35
$31
$167
$317
Contingent Resources Mean Value: $550
Tortue
Ruche
Walt Whitman
Moubenga
Inboard Expl Mean
Outboard Expl Total Resource Mean Mean Value
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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
Prospect and Leads Mean
Inventory MMBO
Prospects (13) 653
Leads (10) In-progress
TOTAL 653
HNR LICENSE
BACK THRUST PROSPECTS/LEADS
FOLD BELT LEADS
STRATIGRAPHIC PROSPECTS/LEADS
Madjene Prospect
(MJN-1)
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Budong-Budong Madjene Prospect
Madjene Prospect
Thrusted anticline Stacked reservoir targets Pliocene and Miocene sands
96 MMBO total mean unrisked reserves
MJN-1 well
1Q 2014
Unrisked Gross Mean P10 COS
Reserves MMBO MMBO %
Pliocene 490 Sand 44 74 30%
Upper Miocene Sand 37 64 21%
Middle Miocene Sand 15 27 20%
TOTAL 96 165
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Why Invest in Harvest
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 year-end 2014 High-impact exploration portfolio in pre-salt offshore
Large Unconventional Oil Block in Government Approval Stage
Proven ability to monetize assets
Utah unconventional asset monetized in 2011
Process underway to monetize Gabon and Indonesia in 2013
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