1994 ANNUAL REPORTAssets Management
At the end of 1994, Swift Energy managed proved reserves on behalf of itself and its co-investors that were roughly three times larger than the Company's own year-end reserves of 103.6 Bcfe. Swift Energy gains several competitive advantages by managing the reserves of its co-investors. The Company reduces production costs through resulting economies of scale, enhances negotiating leverage for oil and natural gas sales through larger production volumes, and operates a larger percentage of its wells because of the greater combined ownership interests of Swift-managed properties. Managing co-investor assets also allows Swift Energy to maintain a larger in-house staff of geophysicists, geologists, petrophysicists, landmen, reservoir engineers, and operations engineers than would otherwise be practical, and it facilitates spreading investments over a large number of prospects, thereby reducing the risks associated with acquisitions and drilling for both the Company and its co-investors. As part of its assets management activities, Swift Energy sold 172 low-value wells in 1994 to reduce operating costs for all investors. Compared to year-end totals, these wells represented 4% of the wells in which Swift had interests but amounted to only about 1% of the Company's proved reserves.
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This page was last updated on Saturday, February 08, 2003, at 07:28:36 PM. Copyright © 1994-2008 by Swift Energy Company. |
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