|
Supplementary Information
Swift Energy Company and Subsidaries
Oil and Gas Operations (Unaudited)
Capitalized Costs. The following table presents our
aggregate capitalized costs relating to oil and natural gas producing
activities and the related depreciation, depletion, and amortization (in
thousands):
|
|
|
Total
|
|
|
Domestic
|
|
|
Discontinued
Operations
|
|
|
December
31, 2007:
|
|
|
|
|
|
|
|
|
|
|
Proved
oil and gas properties
|
|
$ |
2,951,712 |
|
|
$ |
2,610,469 |
|
|
$ |
341,243 |
|
|
Unproved
oil and gas properties
|
|
|
107,095 |
|
|
|
106,643 |
|
|
|
452 |
|
|
|
|
|
3,058,807 |
|
|
|
2,717,112 |
|
|
|
341,695 |
|
|
Accumulated
depreciation, depletion, and amortization
|
|
|
(1,234,401 |
) |
|
|
(981,449 |
) |
|
|
(252,952 |
) |
|
Net
capitalized costs
|
|
$ |
1,824,406 |
|
|
$ |
1,735,663 |
|
|
$ |
88,743 |
|
|
December
31, 2006:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved
oil and gas properties
|
|
$ |
2,264,831 |
|
|
$ |
1,932,336 |
|
|
$ |
332,495 |
|
|
Unproved
oil and gas properties
|
|
|
112,137 |
|
|
|
95,569 |
|
|
|
16,568 |
|
|
|
|
|
2,376,968 |
|
|
|
2,027,905 |
|
|
|
349,063 |
|
|
Accumulated
depreciation, depletion, and amortization
|
|
|
(915,397 |
) |
|
|
(808,708 |
) |
|
|
(106,689 |
) |
|
Net
capitalized costs
|
|
$ |
1,461,571 |
|
|
$ |
1,219,197 |
|
|
$ |
242,374 |
|
Of the $106.6 million of domestic Unproved property costs
(primarily seismic and lease acquisition costs) at December 31, 2007,
excluded from the amortizable base, $42.6 million was incurred in 2007,
$49.2 million was incurred in 2006, $4.5 million was incurred in 2005, and
$10.3 million was incurred in prior years. When we are in an active drilling
mode, we evaluate the majority of these unproved costs within a two to four
year time frame.
Of the $0.5 million of New Zealand Unproved property
costs at December 31, 2007, excluded from the amortizable base, $0.1 million
was incurred in 2007, $0.1 million was incurred in 2006, $0.1 million was
incurred in 2005, and $0.2 million was incurred in prior years.
Capitalized asset retirement obligations have been
included in the Proved properties as of December 31, 2007, 2006, and 2005.
Costs Incurred. The following table sets forth
costs incurred related to our oil and natural gas operations (in thousands):
|
|
|
Year
Ended December 31, 2007 |
|
|
|
|
Total
|
|
|
Domestic
|
|
|
Discontinued
Operations |
|
|
Acquisition
of proved and unproved properties |
|
$ |
253,573 |
|
|
$ |
253,573 |
|
|
$ |
-- |
|
|
Lease
acquisitions and prospect costs(1) |
|
|
62,380 |
|
|
|
56,901 |
|
|
|
5,479 |
|
|
Exploration
|
|
|
65,815 |
|
|
|
65,815 |
|
|
|
--- |
|
|
Development(2) |
|
|
330,866 |
|
|
|
326,879 |
|
|
|
3,987 |
|
|
Total
acquisition, exploration, and development(3, 4) |
|
$ |
712,634 |
|
|
$ |
703,168 |
|
|
$ |
9,466 |
|
|
|
|
Year
Ended December 31, 2006 |
|
|
|
|
Total
|
|
|
Domestic
|
|
|
Discontinued
Operations |
|
|
Acquisition
of proved and unproved properties |
|
$ |
212,499 |
|
|
$ |
212,499 |
|
|
$ |
-- |
|
|
Lease
acquisitions and prospect costs(1) |
|
|
79,183 |
|
|
|
68,594 |
|
|
|
10,589 |
|
|
Exploration
|
|
|
29,286 |
|
|
|
13,225 |
|
|
|
16,061 |
|
|
Development(2) |
|
|
261,143 |
|
|
|
231,086 |
|
|
|
30,057 |
|
|
Total
acquisition, exploration, and development(3, 4) |
|
$ |
582,111 |
|
|
$ |
525,404 |
|
|
$ |
56,707 |
|
|
|
|
Year
Ended December 31, 2005 |
|
|
|
|
Total
|
|
|
Domestic
|
|
|
Discontinued
Operations |
|
|
Acquisition
of proved and unproved properties |
|
$ |
31,429 |
|
|
$ |
31,429 |
|
|
$ |
-- |
|
|
Lease
acquisitions and prospect costs(1) |
|
|
41,397 |
|
|
|
34,502 |
|
|
|
6,895 |
|
|
Exploration
|
|
|
52,350 |
|
|
|
38,425 |
|
|
|
13,925 |
|
|
Development(2) |
|
|
141,082 |
|
|
|
111,058 |
|
|
|
30,024 |
|
|
Total
acquisition, exploration, and development(3, 4) |
|
$ |
266,258 |
|
|
$ |
215,414 |
|
|
$ |
50,844 |
|
(1)These are actual amounts as incurred by year,
including both proved and unproved lease costs. The annual lease
acquisition amounts added to proved oil and gas properties in 2007,
2006, and 2005 were $50.2 million, $70.5 million, and $30.4 million,
respectively. Domestic costs for seismic data acquisition, included
above, were $11.6 million, 23.1 million, and $4.2 million in 2007, 2006
and 2005, respectively. New Zealand costs for seismic data acquisition,
included above were $0.5 million in 2007 and $3.8 million in 2006.
(2)Facility construction costs and capital costs have
been included in development costs, and totaled $71.3 million, $16.5
million, and $26.9 million for the years ended December 31, 2007, 2006
and 2005.
(3)Includes capitalized general and administrative
costs directly associated with the acquisition, exploration, and
development efforts of approximately $30.6 million, $28.3 million, and
$18.8 million in 2006, 2005, and 2004, respectively. In addition, the
total includes $9.5 million, $9.2 million, and $7.2 million in 2007,
2006, and 2005, respectively, of capitalized interest on unproved
properties.
(4)Asset retirement obligations incurred have been
included in exploration, development and acquisition costs as applicable
for the years ended December 31, 2007, 2006, and 2005.
Results of Operations (in thousands).
|
|
|
Year
Ended December 31, 2007 |
|
|
|
|
Total
|
|
|
Domestic
|
|
|
Discontinued
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
and gas sales |
|
$ |
695,250 |
|
|
$ |
652,856 |
|
|
$ |
42,394 |
|
|
Lease
operating cost |
|
|
(84,670 |
) |
|
|
(70,893 |
) |
|
|
(13,777 |
) |
|
Severance
and other taxes |
|
|
(76,647 |
) |
|
|
(73,813 |
) |
|
|
(2,834 |
) |
|
Depreciation,
depletion, and amortization |
|
|
(208,757 |
) |
|
|
(186,086 |
) |
|
|
(22,671 |
) |
|
Accretion
of asset retirement obligation |
|
|
(1,625 |
) |
|
|
(1,437 |
) |
|
|
(188 |
) |
|
Write
down of oil and gas properties |
|
|
(143,152 |
) |
|
|
--- |
|
|
|
(143,152 |
) |
|
|
|
|
180,399 |
|
|
|
320,627 |
|
|
|
(140,228 |
) |
|
Provision
for income taxes |
|
|
(108,056 |
) |
|
|
(121,518 |
) |
|
|
13,462 |
|
|
Results
of producing activities |
|
$ |
72,343 |
|
|
$ |
199,109 |
|
|
$ |
(126,766 |
) |
|
Amortization
per physical unit of production (equivalent bbl of oil) |
|
$ |
17.39 |
|
|
$ |
17.53 |
|
|
$ |
16.34 |
|
|
|
|
Year
Ended December 31, 2006 |
|
|
|
|
Total
|
|
|
Domestic
|
|
|
Discontinued
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
and gas sales |
|
$ |
601,552 |
|
|
$ |
537,513 |
|
|
$ |
64,039 |
|
|
Lease
operating cost |
|
|
(62,475 |
) |
|
|
(49,948 |
) |
|
|
(12,527 |
) |
|
Severance
and other taxes |
|
|
(65,452 |
) |
|
|
(61,235 |
) |
|
|
(4,217 |
) |
|
Depreciation,
depletion, and amortization |
|
|
(166,518 |
) |
|
|
(136,826 |
) |
|
|
(29,692 |
) |
|
Accretion
of asset retirement obligation |
|
|
(1,035 |
) |
|
|
(885 |
) |
|
|
(150 |
) |
|
|
|
|
306,072 |
|
|
|
288,619 |
|
|
|
17,453 |
|
|
Provision
for income taxes |
|
|
(117,493 |
) |
|
|
(113,139 |
) |
|
|
(4,354 |
) |
|
Results
of producing activities |
|
$ |
188,579 |
|
|
$ |
175,480 |
|
|
$ |
13,099 |
|
|
Amortization
per physical unit of production (equivalent Bbl of oil) |
|
$ |
14.23 |
|
|
$ |
14.48 |
|
|
$ |
13.18 |
|
|
|
|
Year
Ended December 31, 2005 |
|
|
|
|
Total
|
|
|
Domestic
|
|
|
Discontinued
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
and gas sales |
|
$ |
423,767 |
|
|
$ |
355,873 |
|
|
$ |
67,894 |
|
|
Lease
operating cost |
|
|
(47,321 |
) |
|
|
(34,941 |
) |
|
|
(12,380 |
) |
|
Severance
and other taxes |
|
|
(42,177 |
) |
|
|
(37,806 |
) |
|
|
(4,371 |
) |
|
Depreciation,
depletion and amortization |
|
|
(106,038 |
) |
|
|
(79,926 |
) |
|
|
(26,112 |
) |
|
Accretion
of asset retirement obligation |
|
|
(762 |
) |
|
|
(627 |
) |
|
|
(135 |
) |
|
|
|
|
227,469 |
|
|
|
202,573 |
|
|
|
24,896 |
|
|
Provision
for income taxes |
|
|
(80,484 |
) |
|
|