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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 1 - us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-->
<!-- xbrl,ns -->
<!-- xbrl,nx -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left">
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="center" style="font-size: 10pt"></div>
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 1 — Organization</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Interim Reporting</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The accompanying unaudited consolidated financial statements contain all adjustments necessary
for a fair statement of our financial position as of September 30, 2011, and the results of
operations for the three and nine months ended September 30, 2011 and 2010, and cash flows for the
nine months ended September 30, 2011 and 2010. The unaudited consolidated financial statements are
presented in accordance with the requirements of Form 10-Q and do not include all disclosures
normally required by accounting principles generally accepted in the United States of America
(“GAAP”). Reference should be made to our consolidated financial statements and notes thereto
included in our Annual Report on Form 10-K for the year ended December 31, 2010, which include
certain definitions and a summary of significant accounting policies and should be read in
conjunction with this Quarterly Report on Form 10-Q. The results of operations for any interim
period are not necessarily indicative of the results of operations for the entire year.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Organization</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Harvest Natural Resources, Inc. (“Harvest”) is an independent energy company engaged in the
acquisition, exploration, development, production and disposition of oil and natural gas properties
since 1989, when it was incorporated under Delaware law.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We have significant interests in the Bolivarian Republic of Venezuela (“Venezuela”). Our
Venezuelan interests are owned through HNR Finance, B.V. (“HNR Finance”). Our ownership of HNR
Finance is through several corporations in all of which we have direct controlling interests.
Through these corporations, we indirectly own 80 percent of HNR Finance and our partner, Oil & Gas
Technology Consultants (Netherlands) Coöperatie U.A., a controlled affiliate of Venezolana de
Inversiones y Construcciones Clerico, C.A. (“Vinccler”), indirectly owns the remaining 20 percent
interest in HNR Finance. HNR Finance owns 40 percent of Petrodelta, S.A. (“Petrodelta”). As we
indirectly own 80 percent of HNR Finance, we indirectly own a net 32 percent interest in
Petrodelta, and Vinccler indirectly owns eight percent. Corporación Venezolana del Petroleo S.A.
(“CVP”) owns the remaining 60 percent of Petrodelta. HNR Finance also has a direct controlling
interest in Harvest Vinccler S.C.A. (“Harvest Vinccler”). Harvest Vinccler’s main business
purposes are to assist us in the management of Petrodelta and in negotiations with Petroleos de
Venezuela S.A. (“PDVSA”). We do not have a business relationship with Vinccler outside of
Venezuela.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In addition to our interests in Venezuela, we have exploration acreage mainly onshore in West
Sulawesi in the Republic of Indonesia (“Indonesia”), offshore of the Republic of Gabon (“Gabon”),
onshore in the Sultanate of Oman (“Oman”), and offshore of the People’s Republic of China
(“China”). See <i>Note 10 — Indonesia</i>, <i>Note 11 — Gabon </i>and <i>Note 12 — Oman</i>.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 2 - us-gaap:SignificantAccountingPoliciesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 2 — Summary of Significant Accounting Policies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Principles of Consolidation</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The consolidated financial statements include the accounts of all wholly-owned and
majority-owned subsidiaries. All intercompany profits, transactions and balances have been
eliminated.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Reporting and Functional Currency</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The United States Dollar (“U.S. Dollar”) is the reporting and functional currency for all of
our controlled subsidiaries and Petrodelta. Amounts denominated in non-U.S. Dollar currencies are
re-measured in U.S. Dollars, and all currency gains or losses are recorded in the consolidated
statement of operations. We attempt to manage our operations in such a manner as to reduce our
exposure to foreign exchange losses. However, there are many factors that affect foreign exchange
rates and resulting exchange gains and losses, many of which are beyond our influence.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Harvest Vinccler does not have currency exchange risk other than the official prevailing
exchange rate that applies to their operating costs denominated in Venezuela Bolivars (“Bolivars”)
(4.30 Bolivars per U.S. Dollar). However, during the three and nine months ended September 30,
2011, Harvest Vinccler exchanged approximately $0.3 million and $0.7 million, respectively, through
Sistema de Transacciones con Títulos en Moneda Extranjera (“SITME”) and received an average
exchange rate of 5.15 Bolivars and 5.17 Bolivars, respectively, per U.S. Dollar. During the three
and nine months ended September 30, 2010, no such exchanges took place. Harvest Vinccler currently
does not have any U.S. Dollars pending government approval for settlement for Bolivars at the
official exchange rate or the SITME exchange rate.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The monetary assets that are exposed to exchange rate fluctuations are cash, accounts
receivable, prepaid expenses and other current assets. The monetary liabilities that are exposed
to exchange rate fluctuations are accounts payable, accruals and other current liabilities. All
monetary assets and liabilities incurred at the official Bolivar exchange rate are settled at the
official Bolivar exchange rate. At September 30, 2011, the balances in Harvest Vinccler’s Bolivar
denominated monetary assets and liabilities accounts that are exposed to exchange rate changes are
3.7 million Bolivars and 6.3 million Bolivars, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     See <i>Note 8 — Investment in Equity Affiliates — Petrodelta </i>for a discussion of currency
exchange risk on Petrodelta’s business.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Cash and Cash Equivalents</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Cash equivalents include money market funds with original maturity dates of less than three
months.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Financial Instruments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our financial instruments that are exposed to concentrations of credit risk consist primarily
of cash and cash equivalents, accounts receivable, and notes payable. Cash and cash equivalents
are placed with commercial banks with high credit ratings. This diversified investment policy
limits our exposure both to credit risk and to concentrations of credit risk.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Total long-term debt at September 30, 2011 consisted of $32 million of fixed-rate unsecured
senior convertible notes maturing in 2013 unless earlier redeemed, purchased or converted. At
December 31, 2010, total long-term debt consisted of $32 million of fixed-rate unsecured senior
convertible notes maturing in 2013 unless earlier redeemed, purchased or converted and $60 million
of fixed-rate unsecured term loan facility maturing in 2012. See <i>Note 4 — Long-Term Debt</i>.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Accounts and Notes Receivable</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Notes receivable bear interest and can have due dates that are less than one year or more than
one year. Amounts outstanding under the notes bear interest at a rate based on the current prime
rate and are recorded at face value. Interest is recognized over the life of the note. We may or
may not require collateral for the notes.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Each note is analyzed to determine if it is impaired pursuant to Accounting Standards Updates
(“ASU”) 2010-20. A note is impaired if it is probable that we will not collect all principal and
interest contractually due. We do not accrue interest when a note is considered impaired. All
cash receipts on impaired notes are applied to reduce the accrued interest on the note until the
interest is made current and, thereafter, applied to reduce the principal amount of such notes.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At September 30, 2011 and December 31, 2010, our note receivable relates to a prospect leasing
cost financing arrangement. The note receivable plus accrued interest was approximately $3.3
million and $3.4 million, respectively, and was secured by a portion of the production from the Bar
F #1-20-3-2 in Utah. With the sale of our oil and gas assets in Utah’s Uinta Basin (“Antelope
Project”) effective March 1, 2011, the note receivable plus accrued interest will be settled upon
finalization of certain terms of the Joint Exploration and Development Agreement (“JEDA”) which
defined the participating parties’ obligations over our Antelope Project. See <i>Note 3 —
Dispositions </i>and <i>Note 5 — Commitments and Contingencies</i>.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Other Assets</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At September 30, 2011, other assets consist of investigative costs associated with new
business development projects of $0.4 million and deferred financing costs of $1.2 million. The
investigative costs are reclassified to oil and gas properties or expensed depending on
management’s assessment of the likely outcome of the project. During the nine months ended
September 30, 2011, $0.1 million of investigative costs associated with new business development
projects were reclassified to expense. At December 31, 2010, other assets consisted of
investigative costs associated with new business development projects of $0.3 million and deferred
financing costs of $2.2 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Deferred financing costs relate to specific financing and are amortized over the life of the
financing to which the costs relate. See <i>Note 4 — Long-Term Debt</i>.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Other Assets at September 30, 2011 also includes a blocked payment of $0.7 million net to our
66.667 percent interest related to our drilling operations in Gabon in accordance with the U.S.
sanctions against Libya as set forth in Executive Order 13566 of February 25, 2011, and
administered by the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”).
See <i>Note 5 — Commitments and Contingencies</i>.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Investment in Equity Affiliates</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Investments in unconsolidated companies in which we have less than a 50 percent interest and
have significant influence are accounted for under the equity method of accounting (Accounting
Standards Codification [“ASC”] 323). Investment in Equity Affiliates is increased by additional
investments and earnings and decreased by dividends and losses. We review our Investment in Equity
Affiliates for impairment whenever events and circumstances indicate a decline in the
recoverability of its carrying value. There are many factors to consider when evaluating an equity
investment for possible impairment. Currency devaluations, inflationary economies and cash flow
analysis are some of the factors we consider in our evaluation for possible impairment. At
September 30, 2011 and December 31, 2010, there were no events that caused us to evaluate our
investment in equity affiliates for impairment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Property and Equipment</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We use the successful efforts method of accounting for oil and gas properties.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Suspended Exploratory Drilling Costs</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Budong PSC</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At September 30, 2011, oil and gas properties include capitalized suspended exploratory
drilling costs of $14.0 million related to drilling in the Budong-Budong Production Sharing
Contract (“Budong PSC”) of the Lariang-1 (“LG-1”). The LG-1 targeted the Miocene and Eocene
reservoirs to a planned depth of approximately 7,200 feet. The LG-1 was drilled to a total depth
of 5,311 feet and encountered multiple oil and gas shows within the secondary Miocene objective.
At a depth of 5,300 feet, losses of heavy drilling mud into the formation were encountered which,
when coupled with the very high formation pressures, led the partners to the decision to
discontinue drilling and plug and abandon the well for safety reasons on April 8, 2011. The
primary Eocene targets had not been reached. While the results to date have not definitively
determined the commerciality of development of the LG-1, we believe that the well results confirm
that the Miocene formation exhibits sufficient quantities of hydrocarbons to justify potential
development pending further appraisal.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Capitalized Interest</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We capitalize interest costs for qualifying oil and gas properties. The capitalization period
begins when expenditures are incurred on qualified properties, activities begin which are necessary
to prepare the property for production and interest costs have been incurred. The capitalization
period continues as long as these events occur. The average additions for the period are used in
the interest capitalization calculation. During the three and nine months ended September 30,
2011, we capitalized interest costs of $0.6 million and $1.6 million, respectively, for qualifying
oil and gas property additions. During the three and nine months ended September 30, 2010, we
capitalized interest costs of $0.7 million and $0.9 million, respectively, for qualifying oil and
gas property additions.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Fair Value Measurements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At September 30, 2011 and December 31, 2010, cash and cash equivalents include $89.4 million
and $51.0 million, respectively, in a money market fund comprised of high quality, short term
investments with minimal credit risk which are reported at fair value. The fair value measurement
of these securities is based on quoted prices in active markets (level 1 input) for identical
assets. The estimated fair value of our senior convertible notes based on observable market
information (level 2 input) as of September 30, 2011 and December 31, 2010 was $62.4 million and
$61.7 million, respectively. The estimated fair value of our term loan facility based on
internally developed discounted cash flow model and inputs based on management’s best estimates
(level 3 input) for identical liabilities as of December 31, 2010 was $49.2 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our current assets and liabilities accounts include financial instruments, the most
significant of which are accounts receivables and trade payables. We believe the carrying values
of our current assets and liabilities approximate fair value, with the exception of the note
receivable. Because this note receivable is not publicly-traded and not easily transferable, the
estimated fair value of our note receivable is based on the market approach and time value of money
which approximates the note receivable book value of $3.3 million and $3.4 million at September 30,
2011 and December 31, 2010, respectively. The majority of inputs used in the fair value
calculation of the note receivable are Level 3 inputs and are consistent with the information used
in determining impairment of the note receivable.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following is a reconciliation of the net beginning and ending balances recorded for
financial assets and liabilities classified as Level 3 in the fair value hierarchy.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><i>(in thousands)</i></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Financial assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Beginning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,420</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,265</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Issuances
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">200</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Accrued interest
</div></td>
<td> </td>
<td> </td>
<td align="right">200</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">398</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Payments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(285</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(443</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,335</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,420</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Financial liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Beginning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">49,237</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Debt issuance
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60,000</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Discount on debt
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,122</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Amortization of discount on debt
</div></td>
<td> </td>
<td> </td>
<td align="right">10,763</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">359</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Payments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(60,000</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">49,237</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Asset Retirement Liability</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     ASC 410, “Asset Retirement and Environmental Obligations” (“ASC 410”) requires entities to
record the fair value of a liability for a legal obligation to retire an asset in the period in
which the liability is incurred if a reasonable estimate of fair value can be made. No wells were
abandoned during the nine months ended September 30, 2011 or the year ended December 31, 2010.
Changes in asset retirement obligations during the nine months ended September 30, 2011 and the
year ended December 31, 2010 were as follows:
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><i>(in thousands)</i></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Asset retirement obligations beginning of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">663</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">50</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Liabilities recorded during the period
</div></td>
<td> </td>
<td> </td>
<td align="right">52</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">382</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Liabilities settled during the period
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Revisions in estimated cash flows
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(120</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">197</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accretion expense
</div></td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Reclassify to gain on sale of assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(599</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Asset retirement obligations end of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">663</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Noncontrolling Interests</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Changes in noncontrolling interest during the nine months ended September 30, 2011 and 2010,
were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><i>(in thousands)</i></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Balance at beginning of period
</div></td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">70,051</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">57,406</td>
<td nowrap="nowrap" valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Net income attributable to noncontrolling interest
</div></td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top">10,730</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top">10,154</td>
<td nowrap="nowrap" valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px"> 
</div></td>
<td> </td>
<td align="right" colspan="2" valign="top" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top" colspan="2" style="border-top: 1px solid #000000"> </td>
<td nowrap="nowrap" valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Balance at end of period
</div></td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">80,781</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="left" valign="top">$</td>
<td align="right" valign="top">67,560</td>
<td nowrap="nowrap" valign="top"> </td>
</tr>
<tr style="font-size: 1px">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px"> 
</div></td>
<td> </td>
<td align="right" valign="top" colspan="2" style="border-top: 3px double #000000"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top" colspan="2" style="border-top: 3px double #000000"> </td>
<td nowrap="nowrap" valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Earnings Per Share</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Basic earnings per common share (“EPS”) are computed by dividing income available to common
stockholders by the weighted-average number of common shares outstanding for the period. Diluted
EPS reflects the potential dilution that would occur if securities or other contracts to issue
common stock were exercised or converted into common stock.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>Three Months Ended September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Basic</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Diluted</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Basic</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Diluted</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><i>(in thousands, except per share data)</i></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations<sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8,585</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8,585</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,381</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,381</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Discontinued operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,464</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,464</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">390</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">390</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income (loss) attributable to Harvest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,121</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5,121</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,991</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,991</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted average common shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">34,174</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34,174</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,596</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,596</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of dilutive securities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,403</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted average common shares,
including dilutive effect
</div></td>
<td> </td>
<td> </td>
<td align="right">34,174</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36,577</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,596</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,596</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Per share:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income (loss) from continuing operations<sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.25</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.23</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.16</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.16</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Discontinued operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.10</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.09</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.01</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.01</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Net income (loss) attributable to
Harvest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.15</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.14</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.15</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.15</td>
<td nowrap="nowrap">)</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>Nine Months Ended September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Basic</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Diluted</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Basic</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Diluted</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14"><i>(in thousands, except per share data)</i></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing operations<sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">3,458</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,458</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">16,095</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">16,095</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Discontinued operations
</div></td>
<td> </td>
<td> </td>
<td align="right">92,483</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">92,483</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,208</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,208</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income attributable to Harvest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">95,941</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">95,941</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">19,303</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">19,303</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted average common shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">34,053</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34,053</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,424</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,424</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Effect of dilutive securities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,592</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,997</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted average common shares,
including dilutive effect
</div></td>
<td> </td>
<td> </td>
<td align="right">34,053</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39,645</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33,424</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36,421</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Per share:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Income from continuing operations<sup style="font-size: 85%; vertical-align: text-top">(a)</sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.10</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.09</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.48</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.44</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Discontinued operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2.72</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.33</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.10</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.09</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Net income attributable to Harvest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2.82</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.42</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.58</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.53</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96%"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td>
<td> </td>
<td>Excludes net income attributable to noncontrolling interest.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The three months ended September 30, 2011 per share calculations above exclude 0.7 million
options and 1.6 million warrants because they were anti-dilutive.
The three months ended September 30, 2010 per share calculations above exclude 3.7 million options
because they were anti-dilutive. We did not have any warrants
outstanding during the three months ended September 30, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The nine months ended September 30, 2011 per share calculations above exclude 0.7 million
options and 1.6 million warrants because they were anti-dilutive.
The nine months ended September 30, 2010 per share calculations above exclude 3.0 million options
because they were anti-dilutive. We did not have any warrants
outstanding during the nine months ended September 30, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Stock options for 0.2 million shares were exercised in the nine months ended September 30,
2011 resulting in cash proceeds of $0.9 million. Stock options for 0.3 million shares were
exercised in the nine months ended September 30, 2010 resulting in cash proceeds of $0.5 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>New Accounting Pronouncements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In September 2011, the Financial Accounting Standard Board (“FASB”) issued ASU No. 2011-08,
which is included in ASC 350, “Intangibles — Goodwill and Other” (“ASC 350”). The objective of
this update is to simplify how entities, both public and nonpublic, test goodwill for impairment.
This update permits an entity to first assess qualitative factors to determine whether it is more
likely than not that the fair value of a reporting unit is less than its carrying amount as a basis
for determining whether it is necessary to perform the two-step goodwill impairment test described
in ASC 350. ASU No. 2011-08 is effective for annual and interim fiscal years beginning after
December 15, 2011. Early adoption is permitted. The adoption of ASU No. 2011-08 is not expected
to have a material impact on our consolidated financial position, results of operation or cash
flows.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Reclassifications</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Certain items in 2010 have been reclassified to conform to the 2011 financial statement
presentation.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 3 - us-gaap:DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 3 — Dispositions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Assets Held for Sale</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On May 17, 2011, we closed the transaction to sell all of our interest in the oil and gas
assets located in our Antelope Project area in the Uinta Basin of Utah which consisted of
approximately 69,000 gross acres (47,600 net acres), and the related contracts, reserves,
production, wells, pipelines production facilities and other rights, title and interests located in
the Uintah Basin in Duchesne and Uintah Counties, Utah. The transaction included the Mesaverde Gas
Exploration and Appraisal Project (“Mesaverde”), the Lower Green River/Upper Wasatch Oil
Delineation and Development Project (“Lower Green River/Upper Wasatch”) and the Monument Butte
Extension Appraisal and Development Project (“Monument Butte Extension”). We owned an approximate
working interest of 70 percent in the Mesaverde and Lower Green River/Upper Wasatch, an approximate
60 percent working interest in one well in the Monument Butte Extension, an approximate 43 percent
working interest in the initial eight well program in the Monument Butte Extension, and 37 percent
working interest in the follow-up six well program in the Monument Butte Extension. The initial
eight well program and follow-up six well program in the Monument Butte Extension were
non-operated. The sale had an effective date of March 1, 2011. We received cash proceeds of
approximately $217.8 million which reflects increases to the purchase price for customary
adjustments and deductions for transaction related costs. All activities associated with the
Antelope Project, as well as the related gain on sale of $104.0 million, have been reflected as
discontinued operations on the consolidated statement of operations. We do not have any continuing
involvement with the Antelope Project.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Antelope Project has been classified as discontinued operations. The Antelope Project
assets and liabilities held for sale as of December 31, 2010, are reported in the consolidated
balance sheet as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><i>(in thousands)</i></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Proved oil and gas properties
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">31,037</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Unproved oil and gas properties
</div></td>
<td> </td>
<td> </td>
<td align="right">57,737</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total assets held for sale
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">88,774</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Asset retirement liabilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">663</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total liabilities held for sale
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">663</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Discontinued Operations</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">          Revenue and net income on these dispositions are shown in the table below:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Nine Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><i>(in thousands)</i></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenue applicable to discontinued operations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,919</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,488</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7,957</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss) from discontinued operations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(3,464</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">390</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">92,483</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,208</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Net loss from discontinued operations for the three months ended September 30, 2011
includes a $3.5 million increase in U.S. income tax related to the sale of the Antelope Project.
Net income from discontinued operations for the nine months ended September 30, 2011 includes $1.4
million for impairment of inventory from cost to market, $3.6 million for employee severance and
special accomplishment bonuses, and $8.7 million of U.S. income tax related to the sale of our
Antelope Project.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Special accomplishment bonuses of $1.2 million directly related to the sale of the Antelope
Project were paid at the closing of the sale. Employee severance costs of $0.1 million were paid
in the three months ended June 30, 2011, and $1.3 million is expected to be paid in January 2012.
Severance costs for key employees include $0.5 million of restricted stock units which was paid in
July 2011. Severance costs for key employees also include 58,000 stock appreciation rights (“SAR”)
granted at an exercise price of $4.595 per SAR. These SARs are exercisable by the key employee for
up to one year after termination.
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 4 — Long-Term Debt</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Long-Term Debt</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><i>(in thousands)</i></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Senior convertible notes, unsecured, with interest at 8.25%
See description below
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">32,000</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">32,000</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Term loan facility with interest at 10%
See description below
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60,000</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">32,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">92,000</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Discount on term loan facility
See description below
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,763</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">32,000</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">81,237</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On February 17, 2010, we closed an offering of $32.0 million in aggregate principal amount of
our 8.25 percent senior convertible notes. Under the terms of the notes, interest is payable
semi-annually in arrears on March 1 and September 1 of each year, beginning September 1, 2010. The
senior convertible notes will mature on March 1, 2013, unless earlier redeemed, repurchased or
converted. The notes are convertible into shares of our common stock at a conversion rate of
175.2234 shares of common stock per $1,000 principal amount of senior convertible notes, equivalent
to a conversion price of approximately $5.71 per share of common stock. The senior convertible
notes are general unsecured obligations, ranking equally with all of our other unsecured senior
indebtedness, if any, and senior in right of payment to any of our subordinated indebtedness, if
any. The senior convertible notes are also redeemable in certain circumstances at our option and
may be repurchased by us at the purchaser’s option in connection with occurrence of certain events.
Financing costs associated with the senior convertible notes offering are being amortized over the
remaining life of the notes and are recorded in other assets. The balance for financing costs was
$1.2 million and $1.9 million at September 30, 2011 and December 31, 2010, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On October 29, 2010, we closed a $60.0 million term loan facility with MSD Energy Investments
Private II, LLC (“MSD Energy”), an affiliate of MSD Capital, L.P., as the sole lender under the
term loan facility. The term loan facility was repaid on May 17, 2011 with proceeds from the sale
of our Antelope Project. As disclosed in previous filings, we issued 6.0 million warrants in three
separate tranches to MSD Energy in connection with the term loan facility. The value of the
warrants was recorded as discount on debt with a corresponding credit to additional paid in
capital. On May 17, 2011, in connection with the payment of the term loan facility, the balance of
the discount on debt for the two tranches which were vested was expensed to loss on extinguishment
of debt in the nine months ended September 30, 2011. The balance of the discount on debt for the
third tranche was reversed out of additional paid in capital as the warrants associated with the
third tranche were unvested. The two vested tranches, 1.6 million warrants at $14.78 per warrant,
remain outstanding at September 30, 2011.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 5 — Commitments and Contingencies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We have various contractual commitments pertaining to exploration, development and production
activities. Currently, we have a work commitment of $22.0 million which is a minimum amount to be
spent on the Al Ghubar / Qarn Alam license (“Block 64 EPSA”) in Oman for the drilling of two wells
over a three-year period which expires in May 2013 (see <i>Note 12 — Oman</i>). Through September 30,
2011, we have incurred $5.2 million of this work commitment. We do not have any remaining work
commitments for the current exploration phase of the Dussafu PSC, but as of May 28, 2012, the Dussafu
PSC enters the third exploration phase. If the partners elect to enter the third exploration
phase, there will be a $7.0 million ($4.7 million net to our 66.667 percent interest) work
commitment over a two year period. The remaining work commitment for the current exploration phase
on the Budong PSC is for geological and geophysical work to be completed in the year 2012 at a
minimum of $0.5 million ($0.3 million net to our 64.51 percent cost sharing interest [see Note 10 — Indonesia]).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In October 2007, we entered into a JEDA with a private third party with respect to the
Antelope Project. In connection with the sale of each party’s interests in the Antelope Project
(see <i>Note 3 — Dispositions</i>), on January 11,
2011, we entered into a letter agreement with the private third party wherein the private
third party agreed to reimburse us for certain expenses related to the sale of the two parties’
interests in the Antelope Project. The private third party disputes our calculation of the amount
owed to us pursuant to the January 11, 2011 letter agreement. On
March 11, 2011, we entered into a
letter agreement with the private third party regarding certain obligations between the parties
related to the JEDA. The private third party disputes our calculation of the amount due pursuant
to one of the items in the March 11, 2011 letter agreement. At September 30, 2011, we have a note
receivable outstanding from the private third party of $3.3 million (see <i>Note 2 — Summary of
Significant Accounting Policies, Accounts and Note Receivable</i>) and an account payable outstanding
to the private third party of $3.6 million related to the purchase in July 2010 of an incremental
10 percent interest in the Antelope Project. At this time, we cannot predict the outcome of this
dispute with the private third party.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On May 31, 2011, the United Kingdom branch of our subsidiary, Harvest Natural Resources, Inc.
(UK), initiated a wire transfer of approximately $1.1 million ($0.7 million net to our 66.667
percent interest) intending to pay Libya Oil Gabon S.A. (“LOGSA”) for fuel that LOGSA supplied to
our subsidiary in the Netherlands, Harvest Dussafu, B.V., for the company’s drilling operations in
Gabon. On June 1, 2011, our bank notified us that it had been required to block the payment in
accordance with the U.S. sanctions against Libya as set forth in Executive Order 13566 of February
25, 2011, and administered by the United States Treasury Department’s OFAC, because the payee,
LOGSA, may be a blocked party under the sanctions. The bank further advised us that it could not
release the funds to the payee or return the funds to us unless we obtain authorization from OFAC.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On June 30, 2011, we filed a voluntary self-disclosure with OFAC to report that we had
possibly violated the U.S. sanctions by attempting to remit funds to LOGSA. On September 20, 2011,
we received a response from OFAC which stated that OFAC had decided to address the matter by
issuing us a cautionary letter instead of pursuing a civil penalty. The cautionary letter
represents OFAC’s final response to the apparent violation, but does not constitute a final agency
determination as to whether a violation occurred.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Concurrently with the filing of the voluntary self-disclosure, we applied for a license with
OFAC that would authorize us to pay LOGSA for the fuel provided. In addition to the blocked funds,
we owe this supplier approximately $0.7 million ($0.5 million net to our 66.667 percent interest)
in additional payments that we are unable to remit unless we are authorized to do so. We are
waiting on a response and are unable, at this time, to predict when a license may be granted, if at
all. On October 26, 2011, we filed an application with OFAC for return of the blocked funds to us.
Unless that application is approved, the funds will remain in the blocked account, and we can give
no assurance when, or if, OFAC will permit the funds to be released.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u>Robert C. Bonnet and Bobby Bonnet Land Services vs. Harvest (US) Holdings, Inc., Branta
Exploration & Production, LLC, Ute Energy LLC, Cameron Cuch, Paula Black, Johnna Blackhair, and
Elton Blackhair in the United States District Court for the District of Utah.</u> This suit was
served in April 2010 on Harvest and Elton Blackhair, a Harvest employee, alleging that the
defendants, among other things, intentionally interfered with Plaintiffs’ employment agreement with
the Ute Indian Tribe — Energy & Minerals Department and intentionally interfered with Plaintiffs’
prospective economic relationships. Plaintiffs seek actual damages, punitive damages, costs and
attorney’s fees. We dispute Plaintiffs’ claims and plan to vigorously defend against them. We are
unable to estimate the amount or range of any possible loss.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u>Uracoa Municipality Tax Assessments</u>. Our Venezuelan subsidiary, Harvest Vinccler, has
received nine assessments from a tax inspector for the Uracoa municipality in which part of the
Uracoa, Tucupita and Bombal fields are located as follows:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Three claims were filed in July 2004 and allege a failure to withhold for technical
service payments and a failure to pay taxes on the capital fee reimbursement and
related interest paid by Petroleos de Venezuela S.A. (“PDVSA”) under the Operating
Service Agreement (“OSA”). Harvest Vinccler has filed a motion with the Tax Court in
Barcelona, Venezuela, to enjoin and dismiss one of the claims and has protested with
the municipality the remaining claims.</td>
</tr>
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Two claims were filed in July 2006 alleging a failure to pay taxes at a new rate set
by the municipality. Harvest Vinccler has filed a protest with the Tax Court in
Barcelona, Venezuela, on these claims.</td>
</tr>
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Two claims were filed in August 2006 alleging a failure to pay taxes on estimated
revenues for the second quarter of 2006 and a withholding error with respect to certain
vendor payments. Harvest
Vinccler has filed a protest with the Tax Court in Barcelona, Venezuela, on one claim
and filed a protest with the municipality on the other claim.</td>
</tr>
</table>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div style="margin-top: 6pt">
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Two claims were filed in March 2007 alleging a failure to pay taxes on estimated
revenues for the third and fourth quarters of 2006. Harvest Vinccler has filed a
protest with the municipality on these claims.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Harvest Vinccler disputes the Uracoa tax assessments and believes it has a substantial basis for
its positions. Harvest Vinccler is unable to estimate the amount or range of any possible loss.
As a result of the SENIAT’s, the Venezuelan income tax authority, interpretation of the tax code as
it applies to operating service agreements, Harvest Vinccler has filed claims in the Tax Court in
Caracas against the Uracoa Municipality for the refund of all municipal taxes paid since 1997.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <u>Libertador Municipality Tax Assessments</u>. Harvest Vinccler has received five
assessments from a tax inspector for the Libertador municipality in which part of the Uracoa,
Tucupita and Bombal fields are located as follows:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>One claim was filed in April 2005 alleging a failure to pay taxes at a new rate set
by the municipality. Harvest Vinccler has filed a protest with the Mayor’s Office and a
motion with the Tax Court in Barcelona, Venezuela, to enjoin and dismiss the claim. On
April 10, 2008, the Tax Court suspended the case pending a response from the Mayor’s
Office to the protest. If the municipality’s response is to confirm the assessment,
Harvest Vinccler will defer to the competent Tax Court to enjoin and dismiss the claim.</td>
</tr>
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Two claims were filed in June 2007. One claim relates to the period 2003 through
2006 and seeks to impose a tax on interest paid by PDVSA under the OSA. The second
claim alleges a failure to pay taxes on estimated revenues for the third and fourth
quarters of 2006. Harvest Vinccler has filed a motion with the Tax Court in Barcelona,
Venezuela, to enjoin and dismiss both claims.</td>
</tr>
</table>
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" style="background: transparent"> </td>
<td width="2%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Two claims were filed in July 2007 seeking to impose penalties on tax assessments
filed and settled in 2004. Harvest Vinccler has filed a motion with the Tax Court in
Barcelona, Venezuela, to enjoin and dismiss both claims.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Harvest Vinccler disputes the Libertador allegations set forth in the assessments and believes it
has a substantial basis for its position. Harvest Vinccler is unable to estimate the amount or
range of any possible loss. As a result of the SENIAT’s interpretation of the tax code as it
applies to operating service agreements, Harvest Vinccler has filed claims in the Tax Court in
Caracas against the Libertador Municipality for the refund of all municipal taxes paid since 2002.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We are a defendant in or otherwise involved in other litigation incidental to our business.
In the opinion of management, there is no such litigation that will have a material adverse impact
on our consolidated financial condition, results of operations and cash flows.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 6 — Taxes</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Taxes Other Than on Income</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The components of taxes other than on income were:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Nine Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14"><i>(in thousands)</i></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Franchise Taxes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">45</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">45</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">136</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">151</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Payroll and Other Taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">205</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">173</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">770</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">565</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">250</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">218</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">906</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">716</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 7 — Operating Segments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We regularly allocate resources to and assess the performance of our operations by segments
that are organized by unique geographic and operating characteristics. The segments are organized
in order to manage
regional business, currency and tax related risks and opportunities. Operations
included under the heading “United States and other” include corporate management, cash management,
business development and financing activities performed in the United States and other countries,
which do not meet the requirements for separate disclosure. All intersegment revenues, other
income and equity earnings, expenses and receivables are eliminated in order to reconcile to
consolidated totals. Corporate general and administrative and interest expenses are included in
the United States and other segment and are not allocated to other operating segments:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Nine Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14"><i>(in thousands)</i></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Segment Income (Loss)</b>
</div></td>
<td> </td>
<td align="left"></td>
<td align="right"></td>
<td> </td>
<td> </td>
<td align="left"></td>
<td align="right"></td>
<td> </td>
<td> </td>
<td align="left"></td>
<td align="right"></td>
<td> </td>
<td> </td>
<td align="left"></td>
<td align="right"></td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">
Venezuela
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">18,652</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5,654</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">52,314</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">49,930</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Indonesia
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(685</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,622</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,562</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,415</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Gabon
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(149</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(639</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(699</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,062</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">United States and other
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9,233</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7,774</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(44,595</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(27,358</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Discontinued operations
(Antelope Project)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,464</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">390</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">92,483</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,208</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net income (loss) attributable
to Harvest
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,121</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,991</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">95,941</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">19,303</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><i>(in thousands)</i></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Operating Segment Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Venezuela
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">333,373</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">292,023</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Indonesia
</div></td>
<td> </td>
<td> </td>
<td align="right">75,770</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,254</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Gabon
</div></td>
<td> </td>
<td> </td>
<td align="right">103,259</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,335</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">United States and other
</div></td>
<td> </td>
<td> </td>
<td align="right">169,982</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">130,626</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net assets held for sale (Antelope Project)
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">88,774</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">682,384</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">553,012</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Intersegment eliminations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(129,736</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(64,768</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">552,648</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">488,244</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
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<!-- Begin Block Tagged Note 8 - us-gaap:EquityMethodInvestmentsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 8 — Investment in Equity Affiliates</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Petrodelta</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Petrodelta is governed by its own charter and bylaws and operates a portfolio of properties in
eastern Venezuela including large proven oil fields as well as properties with substantial
opportunities for both development and exploration. Petrodelta is to undertake its operations in
accordance with Petrodelta’s business plan as set forth in its conversion contract. Under its
conversion contract, work programs and annual budgets adopted by Petrodelta must be consistent with
Petrodelta’s business plan. Petrodelta’s business plan may be modified by a favorable decision of
the shareholders owning at least 75 percent of the shares of Petrodelta. Petrodelta’s 2011 capital
expenditures are expected to be approximately $200 million. As of September 30, 2011, Petrodelta
had incurred only $97.9 million in capital expenditures of its expected 2011 budget primarily due
to lack of funding by PDVSA.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As disclosed in previous filings, PDVSA has failed to pay on a timely basis certain amounts
owed to contractors that PDVSA has contracted to do work for Petrodelta. PDVSA purchases all of
Petrodelta’s oil production. PDVSA and its affiliates have reported shortfalls in meeting their
cash requirements for operations and planned capital expenditures, and PDVSA has fallen behind in
certain of its payment obligations to its contractors, including contractors engaged by PDVSA to
provide services to Petrodelta. In addition, PDVSA has fallen behind in certain of its payment
obligations to Petrodelta, which payments Petrodelta would otherwise use to pay its contractors.
As a result, Petrodelta is continuing to experience difficulty in retaining contractors who provide
services for Petrodelta’s operations. We cannot provide any assurance as to whether or when PDVSA
will become
current on its payment obligations. Inability to retain contractors or to pay them on a
timely basis is having an adverse effect on Petrodelta’s operations and on Petrodelta’s ability to
carry out its business plan.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We have advanced certain costs on behalf of Petrodelta. These costs include consultants in
engineering, drilling, operations and seismic interpretation, and employee salaries and related
benefits for Harvest employees seconded into Petrodelta. Currently, we have five employees
seconded into Petrodelta. Costs advanced are invoiced on a monthly basis to Petrodelta. We are
considered a contractor to Petrodelta, and as such, we are also experiencing the slow payment of
invoices. During the nine months ended September 30, 2011, we advanced Petrodelta $0.7 million for
continuing operations costs, and Petrodelta repaid $0.1 million of the advances. Advances to
equity affiliate has increased $0.6 million in the nine months ended September 30, 2011. Although
payment is slow, payments continue to be received.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2011, the Venezuelan government published in the Official Gazette the Law Creating a
Special Contribution on Extraordinary Prices and Exorbitant Prices in the International
Hydrocarbons Market (the “amended Windfall Profits Tax”). The amended Windfall Profits Tax
establishes a special contribution for extraordinary prices to the Venezuelan government of 20
percent to be applied to the difference between the price fixed by the Venezuela budget for the
relevant fiscal year (set at $40 per barrel for 2011) and $70 per barrel. The amended Windfall
Profits Tax also establishes a special contribution for exorbitant prices to the Venezuelan
government of (1) 80 percent when the average price of the VEB exceeds $70 per barrel but is less
than $90 per barrel; (2) 90 percent when the average price of the VEB exceeds $90 per barrel but is
less that $100 per barrel; and (3) 95 percent when the average price of the VEB exceeds $100 per
barrel. The amended Windfall Profits Tax caps the cash royalty paid on production at $70 per
barrel. By placing a cap on the royalty barrels, the amended Windfall Profits Tax reduces the
royalties paid to the government and increases payments to the National Development Fund
(“FONDEN”).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Windfall Profits Tax is deductible for Venezuelan income tax purposes. Petrodelta
recorded $69.4 million and $161.9 million for Windfall Profits Tax during the three and nine months
ended September 30, 2011, respectively. During the three months ended September 30, 2010, no
expense was recorded for the Windfall Profits Tax. Petrodelta recorded $2.9 million of expense for
the Windfall Profits Tax during the nine months ended September 30, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     There are many sections of the amended Windfall Profits Tax which have yet to be clarified.
One section for which Petrodelta is waiting for clarity is how the $70 cap on royalty barrels will
be applied to royalties paid in-kind. Petrodelta pays royalties on production of 30 percent in-kind and 3.33
percent in cash. For the six months ended June 30, 2011, Petrodelta applied the current oil price
to total barrels produced and to total royalty barrels. In October 2011, Petrodelta received
preliminary instructions from PDVSA that royalties, whether paid in cash or in-kind, should be
reported at $70 per barrel (royalty barrels x $70). The difference between the $70 royalty cap and
the current oil price is to be reflected on the income statement as a reduction in oil sales.
PDVSA also instructed Petrodelta to make the reporting change retroactive to April 18, 2011, the
date of enactment of the amended Windfall Profits Tax. From April 18, 2011 to September 30, 2011,
the reduction to oil sales due to the $70 cap applied to all royalty barrels was $52.7 million
($16.9 million net to our 32 percent interest). Net oil sales (oil sales less royalties) are the
same under the method advised by PDVSA and the method of applying the current oil price to total
barrels produced and to total royalty barrels; however, the method advised by PDVSA understates
gross oil sales.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Per our interpretation of the amended Windfall Profits Tax, the $70 cap on royalty barrels
should only be applied to the 3.33 percent royalty which Petrodelta pays in cash. Pending receipt
of final guidance from the Venezuelan government, we have applied the $70 cap to only the 3.33
percent royalty barrels paid in cash and the current oil sales price to the 30 percent royalty
barrels paid in-kind. With the assistance of Petrodelta, we have recalculated Petrodelta’s oil
sales and royalties to apply the current oil price to its total barrels produced and to the 30
percent royalty paid in-kind and applied the $70 cap to the 3.33 percent royalty paid in
cash for the nine months ended September 30, 2011. From April 18, 2011 to September 30, 2011, net
oil sales (oil sales less royalties) are slightly higher, $5.3 million ($1.7 million net to our 32
percent interest), under this method than the method advised by PDVSA and the method of applying
the current oil price to total barrels produced and to total royalty barrels.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Another section of the amended Windfall Profits Tax for which Petrodelta is waiting for
clarity relates to an exemption of this tax that can be granted by the Ministry of the People’s
Power for Energy and Petroleum (“MENPET”) for the incremental production of projects and grass root
developments until the specific investments are recovered. This exemption has to be considered and
approved in a case by case basis by MENPET. We believe
several of the fields operated by Petrodelta may qualify for the exemption from the amended
Windfall Profits Tax. We are waiting for clarification from MENPET on the definitions of
incremental production and grass roots developments, as well as guidance on the process for
applying for the exemption.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Science and Technology Law (referred to as “LOCTI” in Venezuela) requires major
corporations engaged in activities covered by the Hydrocarbon and Gaseous Hydrocarbon Law (“OHL”)
to contribute two percent of their gross revenue generated in Venezuela from activities specified
in the OHL on projects to promote inventions or investigate technology in areas deemed critical to
Venezuela. LOCTI requires that each company file a separate declaration stating how much has been
contributed; however, waivers have been granted in the past to allow PDVSA to file a declaration on
a consolidated basis covering all of its and its consolidating entities liabilities. Since
Petrodelta expected PDVSA to continue requesting and receiving waivers, Petrodelta did not accrue a
liability to LOCTI for the year ended December 31, 2009. PDVSA has stated that a waiver was
granted for filing year 2009; however, LOCTI has not yet issued the acceptance letter to PDVSA for
the 2009 filing year. The potential exposure to LOCTI for the year ended December 31, 2009 after
devaluation is $4.8 million, $2.4 million net of tax ($0.8 million net to our 32 percent interest).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In December 2010, LOCTI was modified to reduce the amount of contributions beginning January
2011 to one percent of gross revenues for companies owned by individuals or corporations and 0.5
percent for companies owned by Venezuela. Petrodelta’s rate of contribution starting in 2011 will
be 0.5 percent. The contribution is based on the previous year’s gross revenue and is due the
following year. LOCTI was also modified to require all contributions to be paid in cash directly
to the National Fund for Science, Technology and Innovation (“FONDACIT”), the entity responsible
for the administration of LOCTI contributions. Self-funded programs and direct contributions to
projects performed by other institutions are no longer allowed. Petrodelta is accruing the 2011
liability to LOCTI on a current basis.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In November 2010, Petrodelta’s board of directors declared a dividend of $30.6 million, $12.2
million net to HNR Finance ($9.8 million net to our 32 percent interest). Petrodelta shareholder
approval of the dividend was received on March 14, 2011. As of November 2, 2011, this dividend has
not been received, and the timing of the receipt of this dividend is uncertain.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Petrodelta does not have currency exchange risk other than the official prevailing exchange
rate that applies to its operating costs denominated in Bolivars (4.30 Bolivars per U.S. Dollar).
Petrodelta does not have, and has not had, any Bolivars pending government approval for settlement
for U.S. Dollars at the official exchange rate or the SITME rate. The monetary assets that are
exposed to exchange rate fluctuations are cash, accounts receivable, prepaid expenses and other
current assets. The monetary liabilities that are exposed to exchange rate fluctuations are
accounts payable, accruals and other current liabilities. All monetary assets and liabilities
incurred at the official Bolivar exchange rate are settled at the official Bolivar exchange rate.
At September 30, 2011, the balances in Petrodelta’s Bolivar denominated monetary assets and
liabilities accounts that are exposed to exchange rate changes are 811.3 million Bolivars and
3,382.8 million Bolivars, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For the six months ended June 30, 2011, Petrodelta reported income tax expense under
International Accounting Standards (“IAS”) 12 — Income Taxes (“IAS 12”) and IAS 34 — Interim
Financial Reporting (“IAS 34”). However, in the third quarter of 2011, PDVSA made certain
interpretations of IAS 12 and IAS 34 that we do not believe to be in accordance with the guidance.
Per PDVSA’s interpretations, taxable income is projected through the end of the tax year and is to
include only permanent book-to-tax adjustments and the inflation adjustment. All temporary
book-to-tax timing adjustments are excluded. Deferred taxes are to be calculated from the current
balance sheet date. No projections are to be considered for the deferred tax calculation. Since
we do not believe PDVSA’s interpretations to be in accordance with IAS 12 and IAS 34, with the
assistance of Petrodelta, we have recalculated Petrodelta’s income tax under our understanding of the guidance in IAS 12 and IAS
34 which is that taxable income is projected through the end of the tax year and
includes permanent and temporary book-to-tax differences. With this adjustment, Petrodelta’s current income tax rate for the three and nine
months ended September 30, 2011 approximates the expected Venezuela statutory income tax rate for
oil companies.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Petrodelta’s reporting and functional currency is the U.S. Dollar. Petrodelta’s financial
information is prepared in accordance with International Financial Reporting Standards (“IFRS”)
which we have adjusted to conform to GAAP. All amounts through Net Income Equity Affiliate
represent 100 percent of Petrodelta. Summary
financial information has been presented below at September 30, 2011 and December 31, 2010 and
for the three and nine months ended September 30, 2011 and 2010:
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Nine Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="16"><i>(in thousands)</i></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Oil sales
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">304,969</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">144,917</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">814,557</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">422,383</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Gas sales
</div></td>
<td> </td>
<td> </td>
<td align="right">917</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">705</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,322</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,745</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Royalty
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(98,013</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(49,519</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(271,542</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(143,896</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">207,873</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">96,103</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">545,337</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">281,232</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expenses:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Operating expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">20,027</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,274</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">52,993</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27,949</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Workovers
</div></td>
<td> </td>
<td> </td>
<td align="right">4,856</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,637</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,352</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,637</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Depletion, depreciation and amortization
</div></td>
<td> </td>
<td> </td>
<td align="right">15,687</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,146</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">41,405</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,522</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">General and administrative
</div></td>
<td> </td>
<td> </td>
<td align="right">3,310</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,064</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,162</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,123</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Windfall profits tax
</div></td>
<td> </td>
<td> </td>
<td align="right">69,424</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">161,895</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,915</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">113,304</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22,121</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">280,807</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">70,146</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from operations
</div></td>
<td> </td>
<td> </td>
<td align="right">94,569</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">73,982</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">264,530</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">211,086</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Gain (loss) on exchange rate
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(136</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">120,518</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment earnings and other
</div></td>
<td> </td>
<td> </td>
<td align="right">161</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">513</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,886</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,107</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,302</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,525</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,525</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before income tax
</div></td>
<td> </td>
<td> </td>
<td align="right">92,623</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">72,549</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">258,518</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">330,965</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Current income tax expense
</div></td>
<td> </td>
<td> </td>
<td align="right">52,319</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56,660</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">137,280</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">194,736</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred income tax (benefit) expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(16,709</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">18,785</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(44,984</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">66,367</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">57,013</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,896</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">166,222</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">69,862</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Adjustment to reconcile to reported net income (loss)
from unconsolidated equity affiliate:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Deferred income tax (benefit) expense
</div></td>
<td> </td>
<td> </td>
<td align="right">7,096</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(18,953</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">26,835</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(66,441</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Net income equity affiliate
</div></td>
<td> </td>
<td> </td>
<td align="right">49,917</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,057</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">139,387</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">136,303</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity interest in unconsolidated equity affiliate
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">40</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">40</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">40</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">40</td>
<td nowrap="nowrap">%</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before amortization of excess basis
in equity affiliate
</div></td>
<td> </td>
<td> </td>
<td align="right">19,967</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,423</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55,755</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">54,521</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of excess basis in equity affiliate
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(496</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(364</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,369</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,020</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Conform depletion expense to GAAP
</div></td>
<td> </td>
<td> </td>
<td align="right">142</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">89</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(155</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(71</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income from unconsolidated equity affiliate
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">19,613</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,148</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">54,231</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">53,430</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>September 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><i>(in thousands)</i></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,131,393</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">535,225</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Property and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">382,407</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">321,816</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td> </td>
<td align="right">123,083</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">67,755</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">976,809</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">406,339</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">45,169</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39,224</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net equity
</div></td>
<td> </td>
<td> </td>
<td align="right">614,905</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">479,233</td>
<td> </td>
</tr>
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</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Fusion Geophysical, LLC (“Fusion”)</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On January 28, 2011, Fusion Geophysical, LLC’s (“Fusion”) 69 percent owned subsidiary,
FusionGeo, Inc., was acquired by a private purchaser pursuant to an Agreement and Plan of Merger.
We received $1.4 million for our equity investment and $0.7 million for the repayment in full of
the outstanding balance of the prepaid service agreement, short term loan and accrued interest.
The Agreement and Plan of Merger includes an Earn Out provision wherein we would receive an
additional payment of up to a maximum of $2.7 million if FusionGeo, Inc.’s 2011
gross profit exceeds $5.6 million. The Earn Out payment will not be determined until early in
2012. We can give no assurance that we will receive any Earn Out payment.
</div>
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<div align="left" style="font-size: 10pt; margin-top: 6pt">     At December 31, 2009, we fully impaired the carrying value of our equity investment in Fusion.
Accordingly, we did not record net losses incurred by Fusion of $0.1 million and $1.1 million in
the nine months ended September 30, 2011 and 2010, respectively, as doing so would have caused our
equity investment to go into a negative position. However, we have recognized a $1.4 million gain
on the sale of Fusion in the nine months ended September 30, 2011.
</div>
</div>
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 9 — United States Operations</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Gulf Coast</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>West Bay Project</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We held exploration acreage in the Gulf Coast Region of the United States through an Area of
Mutual Interest (“AMI”) agreement with two private third parties. As of June 30, 2011, we and our
partners in the West Bay project agreed to relinquish the exploration acreage we held to the
farmor. The relinquishment has been completed with an effective date of October 31, 2011.
Neither we nor our partners intend to continue any activity in West
Bay. Based on the decision in the second quarter 2011 to relinquish the exploration acreage, the
carrying value of West Bay of $3.3 million was impaired as of June 30, 2011. The West Bay project
represented $3.3 million of unproved oil and gas properties on our December 31, 2010 balance sheet.
</div>
</div>
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 10 — Indonesia</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In January 2011, we acquired an additional 10 percent equity interest in the Budong PSC for
$3.7 million through the exercising of our first refusal right to a proposed transfer of interest
by the operator to a third party. The $3.7 million was paid on April 18, 2011. On August 11,
2011, we received notice from the Government of Indonesia and BPMIGAS, Indonesia’s oil and gas
regulatory authority, that the transfer of the additional interest has been approved. Closing of
this acquisition increased our participating ownership interest in the Budong PSC to 64.4 percent with our cost sharing interest becoming 64.51 percent until first commercial production.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Karama-1 (“KD-1”), the second exploratory well on the Budong PSC, spud June 20, 2011. The
KD-1 is located approximately 50 miles south of the LG-1.
Operational activities during the three months ended September 30, 2011 focused on the drilling of
the KD-1. As of September 30, 2011, we have incurred $13.8 million for the drilling of the KD-1.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     See <i>Note 2 — Summary of Significant Accounting Policies — Suspended Exploratory Drilling
Costs, Budong PSC </i>for a status of the LG-1 exploratory drilling costs. The Budong PSC represents
$33.9 million and $10.9 million of unproved oil and gas properties on our September 30, 2011 and
December 31, 2010 balance sheets, respectively.
</div>
</div>
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 11 — Gabon</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Two Standby Letters of Credit were issued in April 2011 for a semi-submersible drilling unit
and a remote operated vehicle. We took possession of the drilling unit mid-April 2011 on a one
well contract. The drilling rig was released on August 15, 2011. As of September 30, 2011, both
Standby Letters of Credit have been cancelled, and the restricted cash securing the Standby Letters
of Credit has been returned to us.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     See <i>Note 5 — Commitments and Contingencies </i>for a discussion of legal matters related to our
Gabon operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Dussafu PSC represents $47.6 million and $9.2 million of unproved oil and gas properties
on our September 30, 2011 and December 31, 2010 balance sheets, respectively.
</div>
</div>
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 12 — Oman</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2009, we signed an Exploration and Production Sharing Agreement (“EPSA”) with Oman
for the Block 64 EPSA. We have a 100 percent working interest in Block 64 EPSA during the
exploration phase. Oman Oil Company has the option to back-in to up to a 20 percent interest in
Block 64 EPSA after the discovery of gas.
We have a work commitment of $22.0 million which is a minimum amount to be spent on the Block 64
EPSA for the drilling of two wells over a three-year period which expires in May 2012. In order to
complete drilling activities of the two exploratory wells, on August 24, 2011, Oman’s Ministry of
Oil and Gas approved a one-year extension to
May 23, 2013 of the first exploration phase. Through
September 30, 2011, we have incurred $5.2 million of this work commitment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Block 64 EPSA represents $5.8 million and $4.2 million of unproved oil and gas properties
on our September 30, 2011 and December 31, 2010 balance sheets, respectively.
</div>
</div>
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 13 — Related Party Transactions</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Dividends declared and paid by Petrodelta are paid to HNR Finance. HNR Finance must declare a
dividend in order for the partners, Harvest and Vinccler, to receive their respective shares of
Petrodelta’s dividend. Petrodelta has declared two dividends, totaling $33.0 million, which have
been received by HNR Finance and one dividend, totaling $12.2 million, which has not yet been
received by HNR Finance. HNR Finance has not distributed these dividends to the partners. At
September 30, 2011, Vinccler’s share of the undistributed dividends is $9.0 million.
</div>
</div>
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<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 14 — Subsequent Event</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On October 12, 2011, $0.5 million of our 8.25 percent senior convertible notes were converted
into 81,478 shares of common stock at a conversion rate of $5.71 per share. See <i>Note 4 —
Long-Term Debt </i>for a discussion of the conversion ratio.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On October 21, 2011, a Standby Letter of Credit in the amount of $1.2 million was issued as a
payment guarantee for electric wireline services to be provided during the drilling of the two
exploratory wells on the Block 64 EPSA. The Standby Letter of Credit is fully cash collateralized
by a certificate of deposit held in a U.S. bank.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We conducted our subsequent events review up through the date of the issuance of this
Quarterly Report on Form 10-Q.
</div>
</div>
1000
26260
45532
300000
200000
1800000
2000000