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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY SIGNS RUSSIAN DEVELOPMENT AGREEMENT WITH McDERMOTT AND MOL HUNGARIAN OIL AND GAS COMPANYHOUSTON, July 12, 1996 - Swift Energy Company (NYSE: SFY), McDermott International, Inc. (NYSE:MDR), and MOL Hungarian Oil and Gas Company (Luxembourg Exchange) today jointly announced formation of a partnership to pursue the development in the Russian Federation of the Samburg and Evo Yakha Fields in Western Siberia. The partnership will initially be owned equally by all three partners. Subject to fulfillment of certain conditions, the agreement calls for Swift, McDermott and MOL to pursue initial testing and development of hydrocarbon production in the Samburg Field and to collectively arrange for funding and management of the License Areas in conjunction with JSC Senega, the Russian partner with whom Swift has worked over the last three years and who hold these licenses. Upon formation with Senega of a new jointly owned Russian Joint Stock Company to hold the license, the group plans an initial development phase in the Samburg License Area over the next two years with an approximate capital cost of $60-$70 million. Of this amount, approximately $24-$28 million is anticipated to be the collective equity investment, with the balance debt financed with multilateral and bilateral lending institutions. Potential reserves recoverable from the initial development phase are estimated to be up to 69 million barrels of oil and condensate along with 1 trillion cubic feet of natural gas. Success of this initial development could lead to full development of the Samburg License Area with potential reserves of up to 700 million barrels of oil and condensate and 7.5 trillion cubic feet of natural gas. A. Earl Swift, Swift's Chairman and President, stated, "The joinder with McDermott and MOL as partners in the Swift/Senega Russian project enhances our ability to carry forward the development of these significant Western Siberia fields. In addition to sharing the capital risk on this project, both partners bring added strategic value. McDermott is a world leader in engineering design, construction management and project management which is a significant component of this project. MOL Hungarian Oil and Gas Company is vertically integrated with oil and gas development projects throughout the world and has been recently privatized and is listed on the Luxembourg Exchange. MOL has been actively involved in the Russian oil and gas markets for some time and currently imports significant volumes of oil and natural gas from the Russian Federation and will be able to provide substantial marketing expertise." Based in Houston, Swift Energy Company is a 16-year old independent oil and gas company engaged primarily in the exploration, development, acquisition and operation of oil and gas properties. In recent years, Swift has incorporated international oil and gas exploration and development projects as part of its long-term growth strategy. In addition to the Russian Federation, Swift is also currently active in New Zealand and Venezuela. Swift has a record of growth that is founded on an ambitious program of disciplined exploration and reserves development, conservative financing, and innovative management. McDermott International, Inc. is a leading worldwide energy services company. The company and its subsidiaries manufacture steam-generating equipment, environmental equipment, and products for the U.S. government. They also provide engineering and construction services for industrial, utility, and hydrocarbon processing facilities, and shipbuilding industries, and to the offshore oil and natural gas industry. MOL, based in Budapest, is the only integrated oil and gas company based in Eastern Europe and in 1994 was Hungary's largest company in terms of total revenue. MOL is engaged in crude oil refining and trading, the wholesale and retail marketing and distribution of refined petroleum products, the exploration, development and production of natural gas and crude oil and the transmission, wholesale distribution and storage of natural gas. The core area of MOL's international exploration and production activity is North Africa, the Middle East and the former Soviet Union. 16825 Northchase Drive, Suite 400, Houston, Texas 77060
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This page was last updated on Monday, January 10, 2005, at 08:11:34 AM. Copyright © 1994-2008 by Swift Energy Company. |
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