1994 ANNUAL REPORTInternational Initiatives
As part of its risk-management strategy, Swift Energy uses a limited portion of its investment capital for higher-risk activities with higher potential rewards. One such activity is Swift's initiative in Russia to develop two oil and natural gas fields in western Siberia. Under the project's Participation Agreement, Swift Energy provides technical and managerial assistance for the development and production of reserves from the Samburg and Evo-Yakha fields, working with Senega, a Russian joint stock company. Swift's initial capital exposure is limited to $5 million. In return, Swift will receive a minimum 5% net profits interest in the reserves associated with the fields. In 1994, the project was placed on the Pioneer Oil and Gas Projects list of the U.S.-Russia Joint Commission for Technological Cooperation, which is chaired by U.S. Vice President Al Gore and Russian Prime Minister Victor Chernomyrdin. During the year Swift also signed a protocol at a White House ceremony on behalf of itself and Senega with the Overseas Private Investment Corporation for the pursuit of $5 million in political risk insurance and $160 million for project financing. The Company envisions initial field work beginning in the fourth quarter of 1995, with actual drilling to begin in 1996.
|
|||||||||
|
|
|||||||||
|
This page was last updated on Saturday, February 08, 2003, at 07:28:36 PM. Copyright © 1994-2008 by Swift Energy Company. |
|||||||||
|
|
|||||||||
