(Ecofin Agency) - Harvest Natural Resources (HNR) has announced that its wholly owned subsidiary, HNR Energia, has signed a Sale and Purchase Agreement with BW Energy Gabon, to sell all of its oil and gas interests in Gabon.

Under the agreement, BW Energy Gabon will acquire HNR Energia's 100% interest in Harvest Dussafu, which owns a 66.667% interest in the Dussafu production sharing contract encompassing a 210,000 acre area located, offshore Gabon. BW Energy Gabon will pay HNR Energia $32 million in cash for the interest, which is subject to certain changes.

Upon the finalization of the deal, $2.5 million out of the $32 million purchase price will be put in escrow for up to six months, in order to satisfy any post-closing claims the buyer may have for any breaches of contracts made by Harvest and HNR Energia under the agreement.

According to Harvest, its board of directors has determined that the deal is in the best interests of the stockholders and approved the transaction, which is subject to the approval of Harvest's stockholders and the government of Gabon. After giving effect to the transaction, Harvest would withdraw from the Central African country.

Harvest had previously announced that it is assessing a possible termination. Under the termination and winding up process under Delaware law, the earnings from the Gabon transaction would be put together with other Harvest’s assets and will be distributed to stockholders, depending on certain payments and costs. These costs include dissolution expenses, taxes and payments related to the terminations of employment and also funds to create reserves for the payment of current and possible future obligations of Harvest, Energy-pedia news reports.

Anita Fatunji