Swift Energy Company 1996 Annual Report: Growth Through Technology and Teamwork

Growth Through Technology and Teamwork

For the people at Swift Energy, the words "technology and teamwork" are more than a slogan. Together, these words represent a fundamental philosophy of how to get things done.

Swift excels at the innovative application of proven technologies. Like a highly skilled craftsman, the Company is adept at applying the right tool to the right task.

In the tight sands of the AWP Olmos Field in South Texas, for example, Swift’s emphasis on technology includes using the latest techniques in formation fracturing, installing coiled tubing strings to enhance production from older wells, and remotely monitoring field operations.

  At the end of 1996, Swift Energy had interests in 1,828 wells in 12 states. Swift operated 842 of the wells in 10 states, which accounted for 99% of the Company’s proved reserves.

In the Texas Austin Chalk trend, a long series of successful high-deliverability wells has been made possible by Swift’s application of horizontal drilling technology and two-dimensional seismic analysis.

In other portions of the United States, exploration efforts have been aided by the Company’s skillful integration of geological and seismic data, including three-dimensional data.

Seismic analysis also is playing an important role in the Company’s international initiatives, particularly its exploration activities in New Zealand.

  Swift Energy drilled 153 wells in 1996. Of this total, 124 wells were drilled in the AWP Olmos Field in South Texas and nine wells were drilled in the Texas Austin Chalk trend. During the last three years, Swift’s exploration and development program has added 215 Bcfe to the Company’s proved oil and gas reserves at an average discovery cost of $0.57 per Mcfe.

These innovative applications of technology could not take place, however, if Swift Energy’s staff did not include a diverse team of experienced professionals.

The Company’s geology, geophysics, and engineering professionals average over 20 years of experience per employee. Land professionals have an average of over 13 years of experience, while key administration and accounting personnel have an average of over 17 years.

Another factor in Swift’s success has been its use of small, interdisciplinary teams--which are assembled on an as-needed basis from individuals throughout the organization to respond rapidly to changes in technology or the competitive environment.

The atmosphere of teamwork is also enhanced through the use of employee incentives such as stock purchase plans, employee stock ownership plans, stock options, and stock bonuses.

Given the Company’s record of success during the past several years, Swift Energy’s reliance on technology and teamwork has proven to be well founded. With an ongoing commitment to this basic philosophy, the Company will continue to aggressively pursue growth opportunities in the United States and around the world.

Distribution of Swift Energy's Proved Reserves

Proved Reserves(a) (Bcfe)

Region Developed
Undevel-
oped
    Total
Percent of
Company's
Reserves
Percent
Natural
Gas
Percent
Undevel-
oped

AWP Olmos Field(b,c)
117.0 83.4 200.4 77.5 82.4 41.6
Texas Austin Chalk(c) 17.0 8.7 25.7 9.9 92.7 33.9
Other Texas 10.5 1.5 12.0 4.6 79.4 12.5
Total Texas(b) 144.5 93.6 238.1 92.0 83.4 39.3

Louisiana
4.5 1.8 6.3 2.4 89.8 28.6
Oklahoma 4.1 1.0 5.1 2.0 84.3 19.6
Alabama 1.9 0.7 2.6 1.0 54.0 26.9
Mississippi 1.7 0.9 2.6 1.0 31.7 34.6

Other
0.5 3.5 4.0 1.6 44.5 87.5

Total(b)
157.2 101.5 258.7 100.0 87.3 39.2
             
(a)See definitions of proved reserves, proved developed reserves, and proved undeveloped reserves on page 48.
(b)Texas natural gas reserves of 3.0 Bcf that are dedicated to a Company volumetric production payment agreement are excluded from corporate reserves.
(c)For a discussion of these areas, see pages 8-13 and pages 41-42.

 

 


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