1. IPAA 2004 OIL & GAS INVESTMENT SYMPOSIUM April 19-21, 2004 NYSE: HNR www.harvestnr.com

2. Certain statements in this presentation are forward-looking and are based upon the Company’s current belief as to the outcome and timing of future events. All statements other than statements of historical facts included in the presentation regarding budgeted capital expenditures, increases in oil and gas production, the Company’s outlook on oil and gas prices, oil and gas reserves estimate, business strategy and other plans, estimates, projections, and objectives for future operations, are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Important factors that could cause actual results to differ materially from those in the forward- looking statements herein include the timing and extend of changes in commodity prices for oil and gas, operating risks and other risk factors as described in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company’s actual results and plans could differ materially from those expressed in the forward-looking statements.

3. 3 Share Price Performance  35 million shares outstanding  Significantly outperformed market How was this achieved? How will we continue to grow value in the future?

4. 4 Key Events  Aug - Dec 2000New CEO, Board and Executive appointed Create strategy, set key deliverables  February 2002Announce Arctic Gas sale for $220 million  September 2002Announce Venezuelan Gas contract for 198 Bcf  December 2002Venezuela national civil work stoppage  February 2003Restart Venezuelan oil production  September 2003Announce Geoilbent sale for $75 million  October 2003Temblador and El Salto Evaluation  December 2003Announce Venezuelan Gas sales of 70 MMcfpd  January 2004Announce 2004 guidance

5. 5 Achievements  Strengthened the balance sheet  Reduced the cost structure  Delivered Venezuelan gas sales Diversified our revenue stream  $138 million cash to fund future value growth Stabilized the Company Did what we said we would do

6. 6 Characteristics  Oil and gas production in Venezuela  Focused on development  Low below-the-ground risk  Substantial oil and gas production upside  Low cost producer  Growth opportunities in Russia and Venezuela  Strong balance sheet Small, financially stable, international niche player positioned for value growth

7. 7  To identify, access, integrate and exploit large known resources of hydrocarbons  Three guiding principles : Enable Risk manage Value harvest  Two stages to value growth Venezuela is the “cash cow” for next 5 years Develop significant new opportunities – Venezuela – Russia Strategy

8. 8 Venezuela  Most oil reserves in the Western Hemisphere  4th largest oil exporter to U.S.  Faja is one of world’s largest oil fields at 270 BBO  Proved oil reserves of 78 BBO  Oil provides 75% of government export revenue  Proved natural gas reserves of 148 TCF  State Oil Company PDVSA owns CITGO

9. 9 Venezuela - Political Situation Key events:  National civil work stoppage December to February, 2003  Referendum petition  PDVSA organization changed  Rebuilding production Outcomes:  Political and economic uncertainty remains  Referendum?  Seeking new foreign investment  Streamlined decision making in PDVSA/Ministry of Mines

10. 10 Orinoco – South Monagas Unit

11. 11 South Monagas Assets  3 Fields  158,000 Acres  20-Year Operating Service Agreement – 1992  Equity Structure HNR 80% Vinccler 20%  Ryder Scott Reserves (80%) Oil – 70 MMbbl Natural gas – 156 Bcf  Pre-tax SEC PV 10 value at 12/31/03 is $545 million net to HNR El Salto Temblador

12. 12 South Monagas Unit

13. 13 Natural Gas Contract  Deliver up to 198 Bcf through July 2012 $1.03 per Mcf Added 26 MMBoe net to Harvest First sales on November 25, 2003  Adds $12 to $16 million cash flow in 2004  Drilling and infrastructure costs of $51 million $27 MM in 2003  Incremental oil production

14. 14 Uracoa Producing Formation  Before natural gas sales to PDVSA Drill horizontal wells in middle of the oil column Water drive from bottom Avoid gas to extent possible  After natural gas sales to PDVSA Drill horizontal wells just below the gas cap Produce oil between gas cap and middle of oil column 4.5 MMBo priced at $7.00

15. 15 $15$20$25$31.21$35 $2.50193299406560626 $2.80179284391545612 $3.00160266373527593 $3.50127233340494560 $4.0094200307460527 Operating cost per barrel WTI Pricing per barrel South Monagas Pre-tax SEC PV10 Sensitivity at December 31, 2003 ($ MM net to HNR’s 80% interest) Assumes 2003 yearend proved reserves of 96 MMBOE

16. 16 South Monagas Playground  World class hydrocarbon province (8 BBO proven in 168 fields)  Low cost producer  Isleno Fields potential  Exclusive agreement to build field development plan for Temblador and El Salto Fields  Facilities still have capacity post gas contract Harvest has experience and skills to grow in this region

17. 17 ISLENO FIELD  Submitted offer letter to tie field into SMU  Requires SMU physical processing infrastructure  $10M work commitment  Drill 3 wells  Seismic  Infrastructure “Working with PDVSA to progress to agreement” Growth in East Venezuela

18. 18 TEMBLADOR AND EL SALTO FIELDS  Signed MOU on October 17 th 2003 with PDVSA 6 month exclusive period of evaluation and negotiation  Large, under-developed fields, next to SMU Temblador– discovered in 1930’s, produced 115MMBo & 60Bcf – partially closed down in 2002 El Salto – discovered in 1980’s, never developed  Plan to develop fields under new Organic Hydrocarbon Law  Fields are similar to SMU “Growth by doing what we know best” Growth in Eastern Venezuela

19. 19 European Exports from Russia

20. 20 Russia  Energy is 40% of Russia’s exports  Proved oil reserves of 49 BBO  Produces 9.0 million Bopd  Exports 5.5 million Bopd, world’s second largest  Holds nearly one-third of world’s natural gas reserves  Over 1,700 Tcf of proved gas reserves  World’s largest natural gas exporter, 6.7 Tcf annually

21. 21 Russian Acquisition Characteristics  Low risk development  Operating and financial control  Significant reserve, production and cash flow potential  Oil with expanded access to export markets  Natural gas and condensates near infrastructure  Financing capability  Partners “WE WILL ACQUIRE AND DEVELOP QUALITY RUSSIAN ASSETS”

22. 22 Growth Opportunities in Russia  Partner of choice 10 years experience $300 million returned to shareholders from asset sales HNR is not a threat Local respect… enquiries to repeat model  Opportunities are available Large, underdeveloped fields  Cash and financing capacity  Clear objectives, learned lessons

23. 23 Corporate Financial Overview Guidance 2001200220032004 Average price ($/Bbl)......12.5213.0814.07±12.00 Average price ($/Boe)......± 10.00 Production (MMBOE)......9.89.77.812-14 Lifting costs ($/Boe).......4.373.503.972.50-2.75 Cash operating costs......6.975.626.564.25-4.75 Net income ($MM).........431002715-20 Net cash provided by Operating Activities........ 37433965-75 Capital Expenditures.......43 6130-35

24. 24 typicalHNR  Exploration risk□ □  Reinvestment risk□ □  Balance sheet risk□ □  Net income risk□ □  Political / Country risk □ □ Enterprise Risk

25. 25 Harvest Valuation  Proved reserves net to HNR 96 MMBoe  Reserves to production ratio 9 years  Pre-tax SEC PV10 net to HNR $545 million  Shares outstanding 36 million  Barrels equivalent per share 2.7  Cash balance $138 million  Long-term debt at Dec. 31, 2003$ 97 million

26. 26 HARVEST AIMS  Transform company Grow reserves significantly… 5X is the goal  Use $138 million for seed-corn investments Apply project finance when appropriate Prudent, paced development  Manage balance sheet

27. 27 How we will grow in the future  50% to 75% production growth in 2004  Operating expense per Boe down 30% to 35%  50% to 70% cash flow increase in 2004  Grow through acquisition Committed Management and Board – Delivered on Promises Made WE HAVE AN EXCITING FUTURE