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SWIFT ENERGY COMPANY NEWS
SWIFT ENERGY UPDATES NEW ZEALAND AND DOMESTIC
ACTIVITY
FOR SECOND QUARTER 2000
HOUSTON, July 19, 2000 - Swift Energy Company (NYSE, PCX: SFY)
reported that it has spudded its initial delineation well in the New Zealand
Taranaki Basin, offsetting its successful Rimu-A1 discovery well. The Rimu-B1
well began drilling yesterday at approximately 2 A.M. Central Standard Time
and is located about 7,700 feet (2,370 meters) from the discovery location.
The Rimu-B1 delineation well is expected to reach the target Tariki sand
within 60 days and will be drilled to an approximate total depth of 11,600
feet (3,550 meters).
As previously reported in December 1999, the Rimu-A1 discovery well tested
at rates up to 1,525 barrels of 44 degree API gravity crude oil and 4.8
million cubic feet of natural gas per day with no measurable water. The
Company is finalizing engineering studies for production facilities and is in
discussions with potential purchasers of oil and gas production. Initial
production from wells in this area is expected to begin in early 2001. Swift
Energy holds a 90% interest in the permit area, which covers 100,700 net acres
extending both onshore and offshore on the western coast of the northern
island of New Zealand.
Domestically, the Company also reported today that its second quarter oil
and natural gas production of 10.8 billion cubic feet equivalent (Bcfe) is up
from 10.5 billion cubic feet equivalent during the first quarter of 2000. The
Company estimates that the average oil price received for the quarter will be
at or above $27.00 per barrel, while the average gas price received will be
above $3.80 per Mcf. This pricing environment is expected to provide a
composite average price per Mcfe for the quarter at least $0.50 above the
first quarter price of $3.53 per Mcfe. The Company continues to expand its
domestic exploration and development activity. It currently has seven operated
drilling rigs employed and is participating in an additional two outside
operated wells.
Terry Swift, President of Swift Energy Company, noted that, “The timely
spudding of the Rimu delineation well demonstrates our commitment to proceed
with the development of our New Zealand oil discovery. Furthermore, the
anticipated second quarter production increase, when combined with exceptional
hydrocarbon prices, provides the Company with strong operating cash flows. We
remain excited about our foreign and domestic exploration and development
opportunities.”
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 outstanding growth
rates in proved oil and gas reserves, production, and cash flows over the last
five years through a disciplined program of acquisition and drilling, while
maintaining a strong financial position.
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
http://www.swiftenergy.com
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