Harbinger Group Inc.
    Print Page | Close Window

SEC Filings

PRER14A
HRG GROUP, INC. filed this Form PRER14A on 11/14/1995
Entire Document
 << Previous Page | Next Page >>
<PAGE>
 
  The Company's major development projects were completed by the end of fiscal
1988. Other than the $9.3 million and $12.2 million oil and gas workover and
recompletion programs of the Company's Wisdom gas field completed in 1994 and
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 1993, the Company committed to
participate in the drilling of three exploratory wells in its Bolivian
operation, two of which were drilled in 1994.
 
  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 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 interests in such
properties may determine the details of any exploration and development
drilling program.
 
  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, 1994, 1993 and 1992:
 

<TABLE>
<CAPTION>
                                                  UNITED STATES     BOLIVIA
                                                  -------------- --------------
                                                   GAS   LIQUIDS  GAS   LIQUIDS
                                                  (MMCF) (MBBL)  (MMCF) (MBBL)
                                                  ------ ------- ------ -------
      <S>                                         <C>    <C>     <C>    <C>
      TOTAL PROVED RESERVES AS OF:
        September 30, 1994....................... 34,736  366.8  27,317  744.4
        September 30, 1993....................... 40,735  360.4  22,534  721.9
        September 30, 1992....................... 48,467  448.6  21,210  665.2
      TOTAL PROVED DEVELOPED RESERVES AS OF:
        September 30, 1994....................... 27,386  221.3  27,317  744.4
        September 30, 1993....................... 28,181  200.9  22,534  721.9
        September 30, 1992....................... 40,964  297.6  21,210  665.2
</TABLE>

 
  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
liquids.
 
  The reserve estimates presented herein were prepared by Huddleston & Co.,
Inc. ("Huddleston"), independent petroleum reserve engineers. Since September
30, 1994, no major favorable or adverse event has occurred which the Company
believes significantly affects or changes estimated reserve quantities as of
that date. See, however, "Significant Property" below. Zapata 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, 1993.
 
  There are numerous uncertainties inherent in estimating quantities of proved
reserves, including many factors beyond the control of the producer. The
reserve data set forth herein represent only estimates. Reserve engineering is
a subjective process of estimating underground accumulations of crude oil and
natural gas that cannot be measured in an exact manner, and the accuracy of any
reserve estimate is a function of the quality of available data and of
engineering and geological interpretation and judgment. As a result, estimates
of different engineers often vary. In addition, results of drilling, testing
and production subsequent to the date of an estimate may justify revision of
such estimate. Accordingly, reserve estimates are often different from the
quantities of crude oil and natural gas that are ultimately recovered. The
meaningfulness of such estimates is highly dependent upon the accuracy of the
assumptions upon which they were based.
 
                                       8

 << Previous Page | Next Page >>