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Acquisitions of producing oil and natural gas properties remain an important part of
Swift Energy's reserves growth strategy.
In 1994, the Company added 12.9 Bcfe to its proved oil and natural gas reserves through
acquisitions of producing properties. Swift acquired net revenue interests in a combined
total of 157 wells, 23 of which are Swift-operated. Natural gas accounted for 63% of the
total reserves acquired, the majority of which were located in Louisiana, Alabama,
Mississippi, and Texas.
The Company's largest 1994 acquisition was the purchase of $18.1 million in producing
properties in Louisiana and Alabama on behalf of itself and its acquisition limited
partnerships. The proved oil and natural gas reserves associated with the properties
totaled approximately 28 Bcfe, with natural gas comprising 64% of the total.
Swift Energy directly purchased 2.8 Bcfe of these reserves and acquired another 3.5
Bcfe through its general partner interests, for a total of 6.3 Bcfe. In the acquisition,
the Company received net revenue interests in 42 new wells, five of which are Swift
operated.
The remaining reserves from the acquisition were either placed in Swift Energy's
limited partnerships during 1994 or are being held in producing property inventory pending
transfer to partnerships or joint ventures to be formed in 1995. Swift Energy will receive
general partner interests in the inventoried properties when the transfers occur.
The purchase of the Louisiana and Alabama properties was negotiated through Swift
Energy's direct solicitation program, in which Swift seeks out high-quality, strategically
located properties. The Company's investigation of the properties included detailed
analyses by in-house reservoir engineers, geologists, petrophysicists, accountants, and
operations engineers.
In addition to the reserves from the large Louisiana and Alabama purchase, Swift
acquired 2.3 Bcfe of proved reserves scattered in these two states and in Texas and
Mississippi. These reserves were obtained through general partner interests in limited
partnership purchases during 1994. Through these acquisitions, Swift received net revenue
interests in 106 new wells, 16 of which are Company operated. Approximately 61% of the
acquired reserves are natural gas.
Other transactions added 4.3 Bcfe to Swift's proved reserves. These transactions
included acquisitions of additional oil and natural gas reserves in previously formed
limited partnerships through the right of presentment arrangements provided in those
partnerships; that is, the transactions increased the Company's net revenue interests in
wells in which Swift already had general partner interests.
The additional transactions also included some relatively small property acquisitions,
which provided Swift with net revenue interests in nine new wells, two of which are
Company operated.
Swift Energy's capital expenditures for all of its 1994 producing property acquisitions
totaled $13.1 million, including the Company's general partner capital contribution to the
partnerships.
Over the Company's history, Swift has acquired a total of approximately $461 million of
producing oil and natural gas properties on behalf of itself and its co-investors in 120
separate transactions.
Swift has acquired a cumulative total of approximately $108 million of producing
properties for its own account, either through direct purchases or through interests in
limited partnerships and joint ventures. These transactions have added 139.7 Bcfe of oil
and natural gas to the Company's proved reserves.
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