HEC Harken Energy Corp

Harken Energy Acquires 400,000 Acre Coalbed Methane Prospect Located in Indiana DALLAS, March 23 /PRNewswire-FirstCall/ -- Harken Energy Corporation, (AMEX:HEC) announced today that its wholly-owned subsidiary, Gulf Energy Management Company ("GEM") entered into an Exploration and Development Agreement with Indiana Posey L.P., a Texas limited partnership, for the joint exploration and development of coal bed methane within the Posey Prospect Area consisting of approximately 400,000 acres in Posey, Gibson and Vanderburgh counties of Indiana. Gulf Energy Management's obligations under the agreement include funding 100% of the initial $7.5 million of costs to carry out the joint exploration and development of the project in return for a 65% interest in the Posey Prospect Area. The agreement also provides that Gulf Energy Management receive an 82.5% net revenue interest. Gulf Energy Management's funding obligation is to be allocated among three separate technical phases of the project. At the conclusion of each of the first two phases, Gulf Energy Management may elect to terminate the agreement, thereby reducing its commitments. Complete details of the agreement may be found in the Form 8-K filed today with the Securities and Exchange Commission. Commenting on the acquisition Jim Denny, President of Gulf Energy Management, said, "The acquisition in the Posey Prospect Area is an opportunistic transaction that adds to and diversifies our existing oil and gas holdings located along the Texas and Louisiana Gulf Coast. Although we are just in the early stages of our Posey Prospect Area coal bed methane development program, we are excited about the potential and believe it provides an attractive opportunity for growth." Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries. Additional information may be found at the Harken Energy Web site, http://www.harkenenergy.com/, or by calling Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200. Certain statements in this announcement including statements about our plans, objectives, intentions, and expectations are "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to known and unknown risks and uncertainties and inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Harken's actual results could differ materially from those anticipated in the forward-looking statements for many reasons, including the risk that additional "material weaknesses" as disclosed in the 8-K filed by Harken Energy on March 18, 2005, or other internal control deficiencies with the meaning of Section 404 of the Sarbanes-Oxley Act of 2002 are identified, and the risk that additional accounting errors may be identified. Readers are cautioned not to place undue reliance upon these forward-looking statements, which speak only as the date hereof. Contact: Bevo Beaven, Vice President Bill Conboy, Senior Account Executive CTA Public Relations 303-665-4200 DATASOURCE: Harken Energy Corporation CONTACT: Bevo Beaven, Vice President, , or Bill Conboy, Senior Account Executive, , both of CTA Public Relations, +1-303-665-4200, for Harken Energy Corporation Web site: http://www.harkenenergy.com/

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