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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY ANNOUNCES THIRD SUCCESSFUL WELL TEST AT ITS RIMU DISCOVERY IN NEW ZEALANDHOUSTON, March 19, 2001 - Swift Energy Company (NYSE, PCX: SFY) reported today that it had completed a successful test of the Upper Rimu limestone in the Rimu B-1 well in New Zealand. The well was perforated and acidized prior to flowing at a stabilized test rate of 505 barrels of 46-degree API gravity oil per day (“BOPD”) and 2.8 million cubic feet of gas per day (“MMCFPD”) (or 972 BOE per day) with a flowing tubing pressure of 2,324 pounds per square inch absolute (“psia”) on a 16/64-inch choke. This is the second successful test of the Upper Rimu limestone. The Rimu-B1 is located approximately 1,103 feet (336 meters) south/southeast of the Rimu-B2, which tested at rates up to 1,384 BOPD and 9.4 MMCFPD (2,950 BOE per day) from the equivalent zone. The Rimu-B1 is also located approximately a mile and a half (2,370 meters) southeast of the Rimu-A1, which tested at rates up to 1,525 BOPD and 4.8 MMCFPD (2,325 BOE per day) from the Upper Tariki sandstone. The Rimu-B1 well was tested at rates ranging from 852 BOE per day to 1,939 BOE per day and averaged 944 BOE per day during the (90 hour ) test period. In addition to the stabilized rate of 972 BOE per day, the well test included 95 barrels of water per day. Throughout the flow period the rate of water production declined, which indicates the well was continuing to “clean-up.” The absolute potential rate, based on a productivity index calculation, is currently estimated to be 1,845 barrels of oil and 10.3 million cubic feet of natural gas per day (3,562 BOE per day) based on stabilized bottom-hole conditions. The well has been temporarily shut in pending longer-term production testing. The Rimu-B1 well was drilled in the third quarter of 2000 and encountered several significant hydrocarbon shows at various intervals. The well penetrated the Upper Tariki sandstone at approximately 11,323 feet (3,451 meters), but found this section largely faulted out in this well. Below this section, the well encountered the Upper Rimu limestone at a depth of 11,486 feet (3,501 meters), which was perforated and acidized between 11,487 - 11,552 feet (3,502 - 3,522 meters), as reported above. While drilling during the third quarter of 2000, the well encountered approximately 1,640 feet (500 meters) of Maitai metasediments, located below the Upper Rimu limestone, with hydrocarbon shows through much of this interval. Prior to the successful testing of the Upper Rimu limestone two different Maitai sections underwent preliminary evaluation. Intervals between 11,660 - 11,713 feet (3,555 - 3,571 meters) and 12,808 - 12,907 feet (3,905 - 3,935 meters) were perforated but responded with limited flow. Due to limitations of the availability of acid in New Zealand, these perforations were not treated with acid like the Upper Rimu limestone. Based on the test results of the Upper Rimu limestone, future testing of the Maitai metasediments with acid may be warranted. As previously reported on September 20, 2000, the Rimu B-1 well confirmed the presence of a Lower Tariki section of high quality reservoir rock from 13,222 feet (4,031 meters) to 13,304 feet (4,056 meters). Based upon petrophysical analysis, the Lower Tariki section had approximately 56 feet (17 meters) of net pay with an average porosity of 17%. Subsequent testing of the Rimu B-1 in the Lower Tariki sandstone, as reported on October 16, 2000, confirmed the presence of oil-bearing sands on the down-dip flank of the Kauri Prospect. 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 recently completed the drilling of the Rimu-A2 well to a depth of 14,917 feet (4,548 meters). As reported on January 22, 2001, this well was successfully logged to a total depth of 12,890 feet (3,930 meters) and confirmed the presence of an Upper Tariki section of high quality reservoir rock from 12,526 feet (3,819 meters) to 12,717 feet (3,877 meters). Open-hole wireline measurements of resistivity, sonic, density and neutron porosity indicate effective porosities ranging from 12% to 20%. Based upon petrophysical analysis, this Upper Tariki section has approximately 89 feet (27 meters) of net hydrocarbon thickness with an average porosity of 16%. In February, production casing was set in this well to 12,884 feet (3,928 meters). On March 6, 2001, the Company began drilling the fifth well in this area, the Rimu-A3. This well is currently drilling at 6,609 feet (2,015 meters) and is targeting both the Upper and Lower Tariki sandstone as well as the Upper and Lower Rimu limestone. A completion rig will be moved to this location following the drilling of this well. The Company plans to evaluate the Upper Tariki in the Rimu-A2 as well as any prospective horizons that are encountered in the Rimu-A3. The Company plans a test of the larger Kauri structure once the drilling rig is finished with the Rimu-A3 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, “Four wells have now been drilled in this Rimu area with each well encountering multiple horizons of hydrocarbon bearing sandstone and/or limestone. This successful test of the Rimu-B1 well gives us a 100% success rate on the wells tested to date. It is also the first time we have treated the Rimu limestone with acid, and we are particularly pleased with the results. Our fourth well, the Rimu-A2, has been drilled and logged with indications of an Upper Tariki interval comparable to the Rimu-A1. We have every reason to believe that this Rimu-A2 well will also be successfully tested. All of our activity continues to point to this area as having the potential of being a world-class, multiple-zone discovery.” 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 as well as onshore oil and natural gas reserves in New Zealand. 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 08:19:31 AM. Copyright © 1994-2008 by Swift Energy Company. |
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