Harbinger Group Inc.
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SEC Filings

HRG GROUP, INC. filed this Form POS AM on 02/22/1994
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throughout the world, participating in 252 gross wells including 135 gross
wildcats and 117 gross delineation and development wells.  Forty-one of the
gross wildcats and 101 of the gross delineation and development wells indicated
hydrocarbons in sufficient quantities to justify further evaluation.  In its oil
and gas operations, the Company generally participated with others in acquiring
acreage, gathering and evaluating geophysical, geologic, stratigraphic and
engineering data, drilling exploratory wells and developing and bringing into
production any acreage successfully explored.     
     The Company's major development projects were completed by the end of
fiscal 1988.  Since that time, the Company's principal efforts in the United
States have involved participation in the development of some existing gas
properties and the production and sale of gas from producing properties.  All of
the Company's domestic producing properties are located in federal waters
offshore Texas and Louisiana.  Unless the Company acquires additional properties
containing proved reserves or conducts successful exploration and development
activities, or both, the proved reserves of the Company will decline as reserves
are produced.  Other than the $12.2 million oil and gas workover and
recompletion program of the Company's Wisdom gas field completed in 1992, the
Company has not participated in any significant new domestic exploration or
development projects or acquired any additional significant properties since
1988.  However, since September 30, 1993, the Company has participated in
drilling an exploratory well in its Bolivian operation which has now achieved
total depth.  Testing and completion operations are currently underway.     
     The Company's oil and gas operations are subject to all of the risks and
hazards typically associated with the exploration for, and production of, oil
and gas and the additional risks of offshore operations, including blowouts,
cratering, oil spills and fires, each of which could result in damage to or
destruction of oil and gas wells, production facilities or other property or the
environment or injury to persons.  Although the Company's maintains customary
insurance coverage, it is not fully insured against such risks, either because
such insurance is not available or because of high premium costs.  In addition,
certain of the Company's investments in oil and gas properties are those of a
minority interest owner.  Accordingly, others who hold interest in such
properties may determine the details of any exploration and development drilling
     Oil and Gas Reserves.  The following table sets forth information as to the
Company's proved and proved developed reserves of oil and natural gas as of
September 30, 1993, 1992 and 1991:     

                                            UNITED STATES        BOLIVIA
                                          ----------------- ------------------
                                            GAS    LIQUIDS     GAS    LIQUIDS
                                          (MMCF)    (MBBL)   (MMCF)    (MBBL)
                                          -------  --------  -------  --------
<S>                                       <C>      <C>       <C>      <C>
   September 30, 1993...................  40,735     360.4   22,534     721.9
   September 30, 1992...................  48,467     448.6   21,210     665.2
   September 30, 1991...................  61,833     570.0   23,720     743.0
   September 30, 1993...................  28,181     200.9   22,534     721.9
   September 30, 1992...................  40,964     297.6   21,210     665.2
   September 30, 1991...................  53,489     413.7   23,720     743.0

     As used herein, the term "Mcf" means thousand cubic feet, the term "MMcf"
means million cubic feet, the term "Bbl" means barrel and the term "MBbl" means
thousand barrels.   Liquids include crude oil, condensate and natural gas
     The reserve estimates presented herein were prepared primarily by
Huddleston & Co., Inc. ("Huddleston"),  independent petroleum reserve engineers.
Since September 30, 1993, no major favorable or adverse event has occurred which
the Company's believes significantly affects or changes estimated reserve
quantities as of that date.  See, however, "Risk Factors-Oil and Gas Production
Operations and " --Significant Property" below.  Zapex is not a party to any
contracts which include an obligation to provide a fixed and determinable
quantity of oil and gas in the future.  No estimates of the Company's proved net
oil or gas reserves have been filed with or included in reports to any federal
authority or agency other than the Securities and Exchange Commission since
October 1, 1992.     


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