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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY UPDATES NEW ZEALAND ACTIVITYHOUSTON, April 3, 2001 - Swift Energy Company (NYSE: SFY; PCX) reported today that the Rimu-A3 well in New Zealand has encountered hydrocarbon shows in the Upper Tariki sandstone at a total vertical depth of 11,647 feet (3,551 meters). This is approximately 148 feet (45 meters) updip to the Upper Tariki zone in the Rimu-A1 well. The Company has successfully cored 161 feet (49 meters) of full-diameter cores from this section, which appears similar to the same Upper Tariki section in the Rimu-A1 and Rimu-A2 wells. The Company has resumed drilling the A3 well with a Logging-While-Drilling ("LWD") tool attached to the lower portion of the drilling assembly. It is anticipated that this well will take another 30 days to be drilled to a total depth of 15,744 feet (4,800 meters), as it is also targeting the Upper Rimu limestone, the Lower Tariki sandstone and the Lower Rimu limestone. Following the drilling of the Rimu-A3, the drilling rig will be moved to conduct an exploratory test of the "world-class" Kauri prospect. Additionally, the Company announced that extended production testing has begun from the Rimu discovery in New Zealand. Production began April 1, 2001 with an initial flow rate from the Rimu-B2 of 658 barrels of oil per day, 5.2 million cubic feet of gas per day and no water with a flowing tubing pressure of 2,459 pounds per square inch absolute on a 20/64-inch choke. It is anticipated that production rates will gradually be increased within several days but will be limited to 1,000 barrels of oil per day due to capacity constraints of the currently available production testing equipment. The Rimu-B1 well is also ready for production, and if additional test equipment becomes available, production levels will likely be increased. During this initial production period, the oil will be sold while the natural gas will be flared at the location. The Company also reported that it is moving ahead with the design and construction of the Rimu production and processing facilities, which will separate the oil, natural gas and natural gas liquids. It is expected that the initial capacity of these facilities will be 3,500 barrels of oil per day and 10 million cubic feet of gas per day, and that the facility will be operational by year-end 2001. The modular design of these facilities allows the Company to efficiently double the operating capacity at a later date. 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, "We continue to encounter significant hydrocarbon shows and reservoir quality rock with our drilling activity in the Rimu area. We are pleased that the Rimu-A3 well has encountered the Upper Tariki in line with our prognosis. The hydrocarbon shows look good, the coring operation went well, and we recovered a large section of this horizon. Initial review of the LWD information indicates that this Upper Tariki section is similar in nature to the equivalent zone in the Rimu-A1 and Rimu-A2 wells. We are also particularly pleased that production has already begun from this discovery area. We have been able to obtain the necessary consents to flare the natural gas so that we can begin this sustained production testing of these intervals prior to the completion of the production facilities." 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 08:19:40 AM. Copyright © 1994-2008 by Swift Energy Company. |
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