Harvest Natural Resources, Inc. (NYSE: HNR) today announced 2011 first quarter earnings and provided an operational update.

Harvest reported first quarter earnings of approximately $0.8 million or $0.02 per diluted share, compared to earnings of $24.6 million, or $0.64 per diluted share, for the same period last year. � The first quarter results included exploration charges of $1.2 million, or $0.04 per diluted share. � Also during the first quarter the Company incurred costs from discontinued operations of $2.9 million or $0.07 per diluted share from related revenue and expenses associated with the Utah assets. � Finally, Harvest recognized a $1.3 million gain, or $0.03 per diluted share, on the sale of its equity investment in Fusion Geophysical, LLC (Fusion). � Adjusted for exploration charges, proceeds from the sale of Fusion and the losses related to the discontinued operations, first quarter 2011 earnings would have been $3.6 million or $0.10 per diluted share. � 

Petrodelta reported earnings during the first quarter of $61.9 million, $19.8 million net to Harvest's 32 percent interest, under International Financial Reporting Standards (IFRS). � After adjustments to Petrodelta's IFRS earnings, primarily to conform to U.S. GAAP, Harvest's 32 percent share of Petrodelta's earnings was $ 13.5 million. � 

Highlights for the first quarter of 2011 include:

Venezuela

• Oil production from Petrodelta averaged 28,700 barrels of oil per day (BOPD), an increase of 31 percent over the same period in 2010. � The current production rate from Petrodelta is approximately 30,000 BOPD.
• On March 14, 2011, Petrodelta's shareholders approved the remaining 2009 dividends of $30.6 million, $12.2 million net to HNR Finance ($9.8 million net to Harvest's 32 percent interest).
• Petrodelta's first well at the untested Isleno field, ILM-8, was drilled and completed in mid-March of 2011 and was tested at an initial rate of 1,800 BOPD. � Based on this successful test, Petrodelta is expected to drill several additional wells in the Isleno field this year.
• Currently, Petrodelta is operating two drilling rigs in the El Salto and the Uracoa fields. � A workover rig is operating in the Tucupita field. � 

United States

• On March 22, 2011, Harvest announced it entered into a definitive agreement with an affiliate of Newfield Exploration Company to sell all of the Company's oil and gas assets in Utah's Uinta Basin for $215 million in cash. The sale has an effective date of March 1, 2011, and closing is expected to occur in May 2011.

Indonesia

• On January 5, 2011, Harvest exercised its right of first refusal to acquire an additional 10 percent equity in the Budong-Budong Block PSC bringing its working interest in the block to 64.4 percent.
• The Lariang LG-1well (LG-1) was drilled to a total depth of 5,311 feet and encountered multiple hydrocarbon shows and overpressure in Miocene formations requiring up to 16.5 pound per gallon mud. After encountering difficulty in controlling the well due to high pressures, the well was plugged and abandoned on April 8, 2011.
• The test confirmed the presence of hydrocarbons as well as the existence of an effective trap and seal in the Lariang sub-basin.
• Currently transporting the rig and other equipment from the LG-1 site to the Karama KD-1 (KD-1) well site. � 

Gabon

• The Ruche Marin-A exploration well located in the offshore waters of Gabon, West Africa spud on April 28, 2011 utilizing the Transocean Sedneth 701 semi-submersible drilling unit. � 

Oman

• Well planning and procurement of long lead items is planned for the second quarter of 2011 in anticipation of spudding the first of the two exploratory wells in late 2011.

Harvest President and Chief Executive Officer, James A. Edmiston, said, "We are pleased that the Utah sale transaction with Newfield Exploration is nearing completion. � The proceeds from this transaction will provide sufficient capital to fund our existing exploration programs in Indonesia, Gabon and Oman and reduce our debt. � Should our current exploration programs be successful, we will be well-positioned to move quickly to the appraisal phase of these projects."

Edmiston continued, "We continue to see production growth in Petrodelta with a current production rate of 30,000 BOPD. � As the development drilling continues in the El Salto, Temblador and now the Isleno Fields, and as infrastructure develops, we should continue to see increases in production."

Mr. Edmiston concluded, "In the second quarter, we should complete the drilling of the Ruche Marin well in Gabon, drill the KD well on our Budong-Budong block in Indonesia, and close the Utah transaction. � We believe that those activities, along with the ongoing strategic alternatives process, hold significant promise for share appreciation."

Venezuela

During the three months ended March 31, 2011, Petrodelta produced approximately 2.6 million barrels of oil and sold 0.5 billion cubic feet of natural gas; the average daily oil production was 28,700 BOPD, an increase of 31 percent over the same period in 2010 and an increase of nine percent over the previous quarter. �  Cash from Operations for the quarter were $48.6 million, or $27.41 per barrel of oil equivalent, with average prices for the quarter of $87.73 per barrel.

During the first quarter of 2011, Petrodelta drilled and completed five wells, four of which were development wells drilled in the Uracoa, El Salto and Temblador Fields and the first appraisal well drilled in the untested Isleno Field. Currently, Petrodelta is operating two drilling rigs and one workover rig and significant infrastructure work is underway.

Petrodelta's first well in the untested Isleno Field, ILM-8, was drilled and completed in mid-March of 2011 and was tested at 1,800 BOPD with two percent water. The well was completed in the Lower Oficina Sand of the northern fault block with a horizontal well. With an oil gravity of 15.5 API, this crude is very similar to that being produced in the Uracoa Field just 7 km to the north. The current production is being trucked to the Uracoa field; however, plans are underway to build a pipeline connection system between Isleno and the UM2 main production facility at the Uracoa field. � 

In November 2010, Petrodelta's board of directors declared a dividend of $30.6 million, $12.2 million net to HNR Finance ($9.8 million net to our 32 percent interest). � Petrodelta shareholder approval of the dividend was received on March 14, 2011. The dividend represents the remaining 50 percent of the cash withdrawal rights as shareholders on Petrodelta's net income as reported under IFRS for the year ended December 31, 2009. � 

On April 18, 2011, the Venezuelan government published in the Official Gazette the Law Creating a Special Contribution on Extraordinary Prices and Exorbitant Prices in the International Hydrocarbons Market (the "amended Windfall Profits Tax"). � The amended Windfall Profits Tax repeals the original Windfall Profits Tax. � The amended Windfall Profits Tax establishes a special contribution for extraordinary prices to the Venezuelan government of 20 percent to be applied to the difference between the price fixed by the Venezuela budget for the relevant fiscal year (set at $40 per barrel for 2011) and $70 per barrel. � The amended Windfall Profits Tax also establishes a special contribution for exorbitant prices to the Venezuelan government of (1) 80 percent when the average price of the Venezuelan Export Basket ("VEB") exceeds $70 per barrel but is less than $90 per barrel; (2) of 90 percent when the average price of the VEB exceeds $90 per barrel but is less that $100 per barrel; and (3) of 95 percent when the average price of the VEB exceeds $100 per barrel. � It is not clear from the drafting of the amended Windfall Profits Tax if the special contribution for extraordinary prices and the special contribution for exorbitant prices are exclusive of each other; whether these layers are additive or if the 95 percent rate would apply from $70 to the price above $100; and whether the new rates apply to 100 percent of production. � The amended Windfall Profits Tax caps the royalty paid on production at $70 per barrel. � By placing a cap on the royalty barrels, the amended Windfall Profits Tax reduces the royalties paid to the government and increases payments to the National Development Fund ("FONDEN"). � Also, the amended Windfall Profits Tax considers that an exemption of this tax could be granted by Ministry of Energy and Petroleum ("MENPET") for the incremental production of projects and grass root developments until the specific investments are recovered. This exemption has to be considered and approved on a case by case basis by MENPET. � There is still a lack of clarity on several issues. � We are currently evaluating the impact of the amended Windfall Profits Tax on Petrodelta's operations. � 

UNITED STATES - Antelope Project - Utah

On March 22, 2011, Harvest announced it had entered into a definitive agreement with an affiliate of Newfield Exploration Company (Newfield) to sell all of the Company's oil and gas assets in Utah's Uinta Basin for $215 million in cash. The sale has an effective date of March 1, 2011.

The net proceeds from the sale are estimated to be $205 million after deduction for transaction related costs. � Newfield is completing its land due diligence process and the operational transition process continues. � The transaction is on schedule to close mid-May 2011.

EXPLORATION DRILLING ACTIVITIES

Indonesia

Budong-Budong PSC - Indonesia

The Lariang LG-1 well, the first of two planned exploration wells, was spud on January 6, 2011 in the Budong-Budong Block, West Sulawesi. � The well has been drilled to a depth of 5,311 feet and has encountered multiple oil and gas shows within the secondary Miocene objective. Wireline logs and samples of reservoir fluids have confirmed the presence of hydrocarbons, trap and seal thus greatly de-risking the exploration potential of the license. � The high formation pressures and control difficulties required the use of more casing strings at shallower depths than were originally planned. � At a depth of 5,300 feet, losses of heavy drilling mud into the formation were encountered which, when coupled with the very high formation pressures, led to the decision to discontinue operations and plug and abandon the well for safety reasons on April 8, 2011. The primary Eocene targets had not yet been reached, as the well was planned for a total measured depth of approximately 7,200 feet.

The drilling rig is currently mobilizing to drill the second exploratory well on the block, the Karama KD-1 prospect, which is located approximately 50 miles south of the LG-1 well. � The KD-1 well will be drilled to a total depth of about 10,500 feet. � The well is expected to spud during the second quarter of 2011.

Gabon West Africa

Dussafu Project - Gabon ("Dussafu PSC")

The Ruche Marin-A exploration well located in the offshore waters of Gabon, West Africa spud on April 28, 2011. � This exploration well will be drilled utilizing the Transocean Sedneth 701 semi-submersible drilling unit. � 

This exploration well will be drilled in a water depth of 380 feet to test multiple stacked pre-salt targets to a planned total measured depth of approximately 10,100 feet with an option to deepen to 12,500 feet. � Drilling is anticipated to require approximately 28 days. In the event of success, additional time will be required to test and evaluate the well. � 

Oman

("Block 64 EPSA")

Operational activities on the Al Ghubar / Qarn Alam license ("Block 64 EPSA") during the three months ended March 31, 2011 included the completion of the reprocessing and integrating multiple existing 3-D seismic databases. � Detail geological and geophysical interpretation is underway to refine the prospects and define drilling locations. � Well planning and procurement of long lead items began in April 2011 in anticipation of spudding the first of the two exploratory wells in late 2011. � 

Non-GAAP Financial Measures

In this press release, Petrodelta's EBITDA disclosure is not presented in accordance with accounting principals generally accepted in the United States (GAAP) and Petrodelta's financials are not intended to be used in lieu of GAAP presentations of net income or cash flows from operating activities. � EBITDA is presented because we believe it provides additional information with respect to both the performance of our fundamental business activities as well as our ability to meet our future capital expenditures and working capital requirements. � We also believe that financial analysts commonly use EBITDA to analyze Petrodelta's performance. � Although we present selected items that we consider in evaluating our performance, you should also be aware that the items presented do not represent all items that affect comparability between the periods presented. Variations in our operating results are also caused by changes in volumes, prices, exchange rates and numerous other factors. These types of variations are not separately identified in this release, but will be discussed, as applicable, in management's discussion and analysis of operating results in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011.

A reconciliation of EBITDA to net income and cash flows from operating activities for the periods presented is included in the tables attached to this release.

Conference call

Harvest will hold a conference call at 10:00 a.m. Central Daylight Time on Tuesday, May 10, 2011, during which management will discuss Harvest's 2011 first quarter results. The conference leader will be James A. Edmiston, President and Chief Executive Officer. To access the conference call, dial 800-479-9001 or 719-457-2731, five to ten minutes prior to the start time. At that time you will be asked to provide the conference number, which is 6525506. A recording of the conference call will also be available for replay at 719-457-0820, passcode 6525506, through May 16, 2011.

The conference call will also be transmitted over the internet through the Company's website at www.harvestnr.com. To listen to the live webcast, enter the website fifteen minutes before the call to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay of the webcast will be available beginning shortly after the call and will remain on the website for approximately 90 days.

About Harvest Natural Resources:

Harvest Natural Resources, Inc., headquartered in Houston, Texas, is an independent energy company with principal operations in Venezuela, producing and exploration assets in the United States, exploration assets in Indonesia, West Africa, China and Oman and business development offices in Singapore and the United Kingdom. For more information visit the Company's website at www.harvestnr.com.

CONTACT:
Stephen C. Haynes
Vice President, Chief Financial Officer
(281) 899-5716

This press release may contain projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. They include estimates and timing of expected oil and gas production, oil and gas reserve projections of future oil pricing, future expenses, planned capital expenditures, anticipated cash flow and our business strategy. All statements other than statements of historical facts may constitute forward-looking statements. Although Harvest believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from Harvest's expectations as a result of factors discussed in Harvest's 2010 Annual Report on Form 10-K and other public filings.

SOURCE Harvest Natural Resources, Inc.