RELEASE: June 30, 2009
HKN, Inc. Announces Investment in UniPureEnergy
Dallas, Texas – June 30, 2009
Inc. (NYSE Amex US: HKN) (“HKN”) today announced that it entered into a
Securities Exchange Agreement (the “Agreement”) pursuant to which it has acquired a 19.5%
interest in UniPureEnergy Acquisition Co., LLC (“UniPure”),
in exchange for the issuance of 1,000,000 restricted shares of HKN common
patented technologies that upgrade the value and purity of refined products and
provide beneficial economic and positive environmental impact for disposition
of residual fuels and waste materials.
is with the three existing shareholders of UniPure, Quadrant Management, Inc.,
(“Quadrant”), UniPureEnergy Acquisition, Ltd. (“UEA”)
and Hassan Nemazee (collectively, the “Sellers”). Quadrant and UEA are affiliates of the Quasha family. Alan G. Quasha is
the Chairman of the Board of Directors of HKN. Quadrant is the managing member
of UniPure. Pursuant to the terms of the
investment, HKN and the Sellers have granted to one another put and call
options with respect to an additional 3,050 units of UniPure. These options are exercisable only if certain
conditions are satisfied prior to June 2012.
a part of its investment in UniPure, HKN has separately entered into a Loan
Agreement with UniPure pursuant to which HKN will make secured loans to UniPure
and its subsidiaries up to a maximum amount of $2.5 million. These loans are due and payable on or before
June 30, 2012.
HKN, Inc. is
an independent energy company focused on enhancing value for our stockholders
through the development of a well-balanced portfolio of energy-based assets.
Additional information may be found at the HKN Web site, www.hkninc.com. Please e-mail all investor
inquiries to HKNinquiries@ctaintegrated.com.
Certain statements in
this announcement and inferences derived therefrom
may be regarded as “forward-looking statements” within the meaning of the
Securities Exchange Act of 1934, as amended. These forward-looking statements
are based on the opinions and estimates of management at the time the
statements are made. Management’s
current view and plans, however, are subject to numerous known and unknown
risks, uncertainties and other factors that may cause the actual results,
performance, timing or achievements of HKN to be materially different from any
results, performance, timing or achievements expressed or implied by such
forward-looking statements. The various
uncertainties, variables, and other risks include those discussed in detail in
the Company’s SEC filings, including the Annual Report on Form 10-K filed on February
14, 2009. HKN undertakes no duty to
update or revise any forward-looking statements. Actual results may vary materially.