Tranche Update on HKN, Inc.'s Equity Buyback Plan announced on January 22, 2013.

HKN, Inc. is an independent energy company. The Company is engaged in the development of a balanced portfolio of assets in the energy industry. The Company is involved in the management of its energy-based investments. The Company's BWI operating segment owns an oilfield emulsion breaking technology. Its subsidiaries include BriteWater International, Inc. (BWI), HKN Bakken, Inc. (HBI) and HTH, Inc. BWI's oilfield emulsion breaking technology is a continuous process technology to purify oilfield emulsions by breaking and separating the emulsions into oil, water and solids, thereby reducing the environmental impact and disposal costs of these waste materials, while recovering oil. BWI's subsidiary, Arctic Star Alaska, Inc. (Arctic Star), has a 1,000 barrel per day oilfield waste processing plant located in Deadhorse, Alaska. HBI holds non-operated working and royalty interests in properties located in the Bakken and Niobrara shale oil plays.