Harvest Natural Resources plunges after liquidity warning, asset divestment plans

|About: Harvest Natural Resources, Inc. (HNR)|By:, SA News Editor

Harvest Natural Resources (HNR -32.7%) plunges after CEO Peter Hill says on the conference call that the company has received a "default notice from our partner" in Columbia, leading to $2.2M of losses. The company states it is working to reform the agreement.

Given difficulties of its Petro Delta assets and its "significant competitive disadvantage given the exorbitant resulting cost of capital," the company is shopping its Gabonese and Venezuelan assets in pieces or in whole in order to return assets to shareholders.

Management notes grimly that the company's biggest near-term difficulty is its "near-term liquidity."