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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY UPDATES NEW ZEALAND ACTIVITYHOUSTON, October 16, 2000 - Swift Energy Company (NYSE: SFY; PCX) reported today that it has completed the preliminary testing phase of the Lower Tariki sandstone in the Rimu-B1 well, its first delineation well in the New Zealand Taranaki Basin. As previously announced, the Upper Tariki sandstone, which produced at rates up to 1,525 barrels of oil per day and 4.8 million cubic feet of natural gas per day from the Rimu-A1 exploratory well, was substantially faulted out in the Rimu-B1. The Company plans to immediately begin drilling the second delineation well, the Rimu-B2, directionally from the same pad location and expects to encounter a full section of the Upper Tariki sandstone in this well. The Company currently estimates the total reserve potential for this Upper Tariki oil discovery to be between 40 and 100 million barrels of oil equivalent. The preliminary testing of the Rimu-B1 in the Lower Tariki sandstone has confirmed the presence of oil-bearing sands on the down-dip flank of the Kauri Prospect. The wellbore information from the two wells drilled to date, along with additional seismic data obtained and interpreted this year, have provided further evidence that this Rimu area and the yet to be drilled updip Kauri Prospect may well be in direct communication to form a major multi-zone field discovery. A location to test the Kauri prospect has been selected and is undergoing the land consenting process. Upon completion of the Rimu-B2 delineation well, the Company plans to immediately begin an exploratory well to test the Kauri Prospect. The initial testing phase of the Rimu-B1 well exclusively targeted the Lower Tariki sandstone, which confirmed the presence of oil bearing sandstones with an initial reservoir pressure of approximately 7520 PSIA (pounds per square inch absolute), at a depth of 13,255 feet (4,041 meters). During this phase of testing, the Rimu-B1 produced at daily equivalent rates up to 1,086 barrels of oil, 1,432 thousand cubic feet of natural gas and 576 barrels of water. However, due to either formation damage incurred while drilling or lower than expected permeability, the well averaged 114 barrels of oil per day, 429 thousand cubic feet per day and 111 barrels of water per day over a combined 108 hour test period. The Company will, as part of its future operations, consider a stimulation treatment of the Lower Tariki sandstone to enhance production, a sidetrack of the well in order to obtain a more advantageous geological position in both the Upper and Lower Tariki sandstones and/or testing other potential intervals in the wellbore. Future activities will be determined subsequent to the drilling and evaluation of the Rimu-B2 well. Swift Energy New Zealand Ltd., as operator, holds a 90% interest in the permit on which this well was drilled, which covers 100,652 net acres extending both onshore and offshore on the western coast of the northern island of New Zealand. Antrim Oil & Gas, Ltd., a wholly owned subsidiary of Calgary-based Antrim Energy, Inc. (CDNX: AEN.), and Marabella Enterprises Ltd., a subsidiary of Brisbane-based Bligh Oil and Minerals Ltd. (Australia: BLO), each hold a 5% interest. Terry Swift, President of Swift Energy Company, noted that, "The Upper and Lower Tariki oil discovery at Rimu appears to be part of a much larger structural feature known as the Kauri Prospect. The Rimu-B1 has demonstrated that the Tariki sandstones were deposited over a large areal extent and that the Lower Tariki sandstone is oil bearing at the Rimu-B1 location, over a mile and a half southeast of the Rimu-A1 discovery well. Additional work will be required to establish commercial production at the Rimu-B1 location. However, the information learned from this well has increased our confidence that the Rimu-Kauri structure is a world class prospect." 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 flow over the last five years through a disciplined program of acquisitions 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
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This page was last updated on Monday, January 10, 2005, at 08:18:09 AM. Copyright © 1994-2008 by Swift Energy Company. |
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