VOC Voc Energy Trust

Harvest Natural Resources Inc. (HNR), an upstream operator, has signed two separate sales agreements with Petroandina Resources Corporation N.V. (Buyer) and Pluspetrol Resources Corporation BV. Per the agreements the company would divest its 80% stake in Harvest-Vinccler Dutch Holding BV for a total consideration of $400.0 million.

Of this 80% the company has already completed the sale of 29% stake to Buyer for a consideration of $125.0 million. The remaining 51% stake to be acquired by Pluspetrol is expected to be completed by mid-2014. This is expected to garner proceeds of approximately $275.0 million.

The race towards the acquisition of Harvest-Vinccler stake was owing to its 40% holding in Petrodelta, S.A. Lapping up the stake of Harvest Natural Resources would give the duo of Buyer and Pluspetrol together control over 32% stake in Petrodelta.

The divestment is a smart move on the part of Harvest Natural Resources. The company plans to utilize proceeds from the stake sale to Buyer to reduce the quantum of long-term debt. It plans to invest the proceeds from the stake sale to Pluspetrol for augmenting its working capital.

Houston, Texas-based Harvest Natural Resources is an independent energy firm. The company primary involves in the development and production of oil and natural gas resources. Harvest Natural Resources also explores oil and gas properties in Indonesia, West Africa and China.

Harvest Natural Resources currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at better-ranked players in the exploration and production sectors like Abraxas Petroleum Corp. (AXAS), Clayton Williams Energy Inc. (CWEI) and VOC Energy Trust (VOC). All these stocks sport a Zacks Rank #1 (Strong Buy).

 
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