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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY PROPOSES PURCHASE OF OIL AND GAS PROPERTIES FROM LIMITED PARTNERSHIPSHOUSTON, April 2, 1998 - Swift Energy Company (NYSE, PCX: SFY) announced today that it has notified the investors in 63 Swift-managed production partnerships formed between 1986 and 1994 of its intent to offer to purchase all of the oil and gas properties owned by those partnerships, if such purchase is approved by investors. As part of this process, Swift has engaged three independent appraisers to separately determine, and then agree upon, a fair market value as to the property assets for each partnership. Swift estimates that the market value of the investors’ interest in the properties involved in the proposed transaction is $70 million to $75 million. The Company ceased marketing new public limited partnerships in 1995, but has continued to manage outstanding partnerships on behalf of the limited partners. Assuming that the investors in all 63 partnerships approve these offers, only four public production partnerships formed in 1995 will continue to exist. Earl Swift, Chairman and CEO, stated, "Production in most of the properties in these partnerships has begun to decline from peak levels. Substantial capital would be required to extend output for many of these properties. This capital is not available to the partnerships without incurring partnership debt and seriously limiting cash distributions. After a detailed financial and operational study of the properties in these partnerships, we believe that the proper time to liquidate these properties is now." As managing general partner of these partnerships, Swift is now in the process of preparing proxy materials that will include details of the proposed liquidation and subsequent dissolution of the partnerships. These proxies, where required, are anticipated to be filed with the Securities and Exchange Commission this month. "We believe that the proposed transaction is a ‘win-win’ situation," Mr. Swift continued. "For Swift’s limited partners, it is an opportunity to avoid debt and reduced cash flow and realize market value for their properties. For Swift, the transaction will consolidate many properties in which the Company already has interests, provide opportunities to extend the productive lives and ultimate reserves in various fields and possibly add new exploration potential. In addition, it allows Swift to fulfill its longstanding commitment to its limited partners." Assuming that all or a substantial portion of the partnership interests are acquired, Swift expects to delay a portion of its current capital spending program for 1998, which is currently estimated at $154 million, given the use of funds for this property acquisition. Swift Energy Company is an independent oil and gas company engaged in the exploration, development, acquisition and operation of oil and gas properties, with a focus on U.S. onshore natural gas reserves. Founded in 1979 with headquarters in Houston, Texas, the Company has achieved an average compounded growth rate in proved oil and gas reserves of approximately 40% per year during the last five years, with reserves additions in 1997 replacing the Company’s production by more than 500%. This material includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections or other statements, other than statements of historical fact, are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. Certain risks and uncertainties inherent in the Company’s business are set forth in the filings of the Company with the Securities and Exchange Commission. 16825 Northchase Drive, Suite 400, Houston, Texas 77060
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This page was last updated on Monday, January 10, 2005, at 08:15:17 AM. Copyright © 1994-2008 by Swift Energy Company. |
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