We aim to repeat the success of our business model in Russia and Venezuela by identifying, accessing and integrating additional large resources of hydrocarbons to exploit them for value and diversify our portfolio.
Moving Forward: Capital Fuels Growth
At June 30, 2006, the Harvest balance sheet is strong, with more than $147 million in working capital. Certainly, this provides the liquidity to fund acquisitions and, as importantly, the flexibility to negotiate a resolution to our choosing of the uncertainties created by the Venezuelan government.
But the ability of any company to grow and execute its strategy is strongly influenced by its access to capital markets, and Harvest is no exception.
Today, cash is our primary source of capital. The fuel to fund our growth must include cash, debt capacity and a reasonable valuation by the market of our assets to provide access to equity markets. Executing the Harvest strategy of creating a diverse portfolio of large, un- and underdeveloped resources in politically challenging countries will achieve that goal.
