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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY UPDATES NEW ZEALAND ACTIVITYHOUSTON, June 4, 2001 - Swift Energy Company (NYSE, PCX: SFY) reported today that it continues to drill the Kauri-A1 well at 8,679 feet (2,646 meters) in a 12 1/4-inch hole. Plans for the well call for 9 5/8-inch casing to be set at a depth of 9,840 feet (3,000 meters), and then call for drilling of an 8 1/2-inch hole to a target depth of 14,760 feet (4,500 meters) to evaluate potential Tariki sandstone, Rimu limestone and Cretaceous sandstone reservoirs on this large Kauri structure. The well is expected to take another 20 to 25 days to reach total depth. The Kauri structure lies immediately south of the Rimu structure where wells have encountered Upper and Lower sections of both the Tariki sandstone and Rimu limestone. Two prior wells at Rimu encountered downdip Cretaceous intervals with indications of hydrocarbons on logs or in core samples. It is anticipated that the Tariki sandstone and Rimu limestone intervals will be encountered in the Kauri-A1 well at depths up to approximately 1,000 feet (305 meters) high to the producing intervals at Rimu, while the Cretaceous sandstones are expected to be encountered up to approximately 3,000 feet (915 meters) high to those found in the Rimu wells. The Company also reported that production testing has begun at the Rimu A pad. The Rimu-A1 well began production testing on May 31 and is currently producing at a rate of 607 barrels of oil per day and 2.1 million cubic feet of gas per day with no water on a 16/64-inch choke. It is anticipated that this test will be interrupted for approximately two days while the test facilities are moved to facilitate flow line construction activities at the A Pad. Following this interruption, the choke size will be increased to begin flowing the well at a rate of approximately 1,000 barrels of oil per day. Additional production testing will also be conducted on the A2 and A3 wells. The Rimu-A3 well has been perforated over an interval of approximately 125 feet (38 meters) in the Upper Tariki sandstone that is located approximately 148 feet (45 meters) updip from the same zone in A1 well. Based on pressure tests conducted on the various Tariki sandstone completions and the information obtained from the full cores taken while drilling the Rimu-A3 well, the Company has determined that a “mud-clean-up” acid treatment is necessary before final completion. Prior to final completion, the well flow tested at an average rate over five days of 67 barrels of oil per day and 294 thousand cubic feet of gas per day, with 19 barrels of water per day. Laboratory analysis of the 161 feet (49 meters) of full diameter vertical core recovered through the Upper Tariki sandstone while drilling indicates that with the average permeability and porosity observed, the formation should provide significantly better flow rates following a proper cleanup treatment. Preliminary studies on these core samples indicate formation damage around the well bore that may have been caused by either the drilling or completion fluids. While preliminary analysis indicates that treatment with acid will improve this skin damage, further studies are underway to determine the optimal method of stimulation. The Company will commence the final completion of this zone as soon as this analysis is completed. The Rimu-A2 well, which is approximately 322 feet (98 meters) downdip in the Upper Tariki sandstone from the same interval in the A1 well, was initially perforated in the lower 82 feet (25 meters) of this section to determine if a possible water zone might be present at this lower interval, which has been confirmed. These perforations have been isolated, and operations are currently underway to perforate the top 18 feet (5.5 meters) of the Upper Tariki sandstone in this well bore. The confirmation of this water zone establishes the downdip limit of this structure and further indicates that the Upper Tariki oil discovery may be supported by an aquifer system, which should improve the ultimate oil recovery. Limited production testing from the Upper Rimu limestone has also been conducted from the wells at Rimu B pad. The Rimu-B1 well was tested over a 23 day period and produced at an average rate of 271 barrels of oil and 3.4 million cubic feet of gas, with 146 barrels of water per day from the Upper Rimu limestone. Analysis of production logging measurements demonstrates that the water production is coming from a zone below the current perforations. Subsequent operations on the Rimu B-1 completion will attempt to eliminate the water production. The Rimu-B2 well was tested over a 13 day period and produced at an average rate of 256 barrels of oil and 6.0 million cubic feet of gas, with 8 barrels of water per day. Further testing of the B pad wells will commence when facilities are available at the production station. Additionally, the Company reported that it had begun construction of production and gas processing facilities, which are initially designed to handle 3,500 barrels of oil per day and 10 million cubic feet of processed natural gas per day. With minor modifications, the capacity at these facilities can be increased relatively quickly to 7,500 barrels of oil per day and 18 million cubic feet of processed natural gas per day. The Company and New Zealand electricity generator, Genesis Power Limited, recently announced their agreement for the sale by Swift to Genesis of 40 petajoules (approximately 38 billion cubic feet) of natural gas over a 10-year period. Natural gas deliveries from Swift’s Rimu discovery in New Zealand will begin under this contract once production and gas processing facilities are completed, which is expected by the end of this year. The Company also reported that it is in the process of obtaining an additional 75% interest in PEP 38730, bringing its total interest in this permit to 100%, by taking over the continuing work program from the previous operator of the permit. The 48,931-acre permit is geologically positioned at the northern extremity of the onshore Tarata Thrust Zone. The Company intends to acquire approximately 18.6 miles (30 kilometers) of additional seismic to evaluate several prospective leads on the permit. If warranted by further evaluation of the acquired seismic data, the Company could drill an exploratory test on this permit by mid-2002. Terry Swift, President of Swift Energy Company, noted that, “We are excited to finally be drilling the Kauri-A1 well, which is targeted near the crest of this large structure that is significantly updip from the multi-zone discovery at Rimu. We continue to believe that it holds world-class potential of between 200 and 500 million barrels of oil equivalent. We are pleased to have begun construction of the production and processing facilities and the production testing of the various Rimu wells. Although we have encountered some difficulties with formation damage in some of these wells, the 161 feet of full vertical cores that were obtained from the Upper Tariki sandstone in the A3 well will greatly enhance our ability to make better completions in these reservoirs. We continue to aggressively develop our discovery and expand our exploration opportunities in the Taranaki Basin in New Zealand.” Swift Energy New Zealand Ltd., as operator, holds a 90% interest in the permit where the Rimu discovery is located, 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. 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 08:20:11 AM. Copyright © 1994-2008 by Swift Energy Company. |
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