SWIFT ENERGY COMPANY NEWS
SWIFT ENERGY REPORTS INCREASED PRODUCTION
IN SECOND QUARTER AND UPDATES DOMESTIC OPERATIONS
HOUSTON, July 23, 2001 - Swift Energy
Company (NYSE, PCX: SFY) reported today that production for the second quarter
was 11.3 billion cubic feet equivalent (“Bcfe”) up 10% from 10.3 Bcfe in
the prior quarter of this year. Realized natural gas prices for the second
quarter are estimated to exceed $4.50 per thousand cubic feet while oil prices
are estimated to exceed $25.50 per barrel. The Company will report second
quarter earnings on August 1st and expects to exceed the current analysts’
consensus of $0.54 per diluted share.
Exploration Drilling
Four additional exploratory wells have been drilled and had pipe set in the
second quarter. These wells are currently undergoing testing.
The Post #1 well (76% working interest), in the Nita #1 Prospect in Goliad
County, Texas, was drilled to a total depth of 14,937 feet and has been tested
in Wilcox sands with initial flow rates prior to fracture stimulation of 2.2
million cubic feet per day (“MMcfpd”) and 25 barrels of condensate per day
on a 10/64-inch choke with flowing tubing pressure of 3,850 pounds per square
inch absolute (“psia”). This well will be flowed into the pipeline for a
short while followed by a fracture stimulation procedure on this zone.
Casing has been set in the Foster Minerals #1 well (49% working interest),
in the Lion Prospect in San Jacinto County, Texas, to a depth of 15,800 feet.
This well has encountered at least three separate zones of over 500 feet of
sand thickness in the Woodbine that are targeted for testing over the next
several weeks.
The Mallet #1 well (65% working interest), in the Sienna Prospect in
Willacy County, Texas, had pipe set to a total depth of 16,300 after
encountering several Frio sands similar to those found in the Company’s
previously announced Vaughn #1 well located 2.5 miles immediately to the
south. This well is currently being perforated and tested in certain of these
zones.
The Kinnally #1 well (25% working interest), in the Falcon Ridge Prospect
in Zapata County, Texas, had pipe set to a total depth of 11,990 and will be
perforated, fractured and tested over the next few weeks in the Wilcox sands.
The Hovden-Tierney 43-3 #1 well (75% working interest), in the Bullwinkle
Prospect in Converse County, Wyoming, which is targeting the Teapot formation,
has reached its planned depth of 6,510 feet and production casing is currently
being run in the hole.
The non-operated Miami #1 well (15% working interest), in the Sweetlake
Prospect in Cameron Parish, Louisiana, is drilling at approximately 15,000
feet and targeting Miocene sands at deeper intervals.
Updated information on these exploration wells will be provided at the time
of the Company’s second quarter earnings release and conference call on
August 1st.
Development Drilling
The Company also reported that nine operated wells and two non-operated
wells were drilled and successfully completed in the second quarter. All but
two wells have been placed on production as of this date. Five wells were
drilled and completed in the AWP-Two Rivers Field, three wells in the
Brookeland Field, one well in the South Burr Ferry Field and one well in the
Masters Creek Field, along with one development well in the Wilcox trend in
Lavaca County. The addition of these wells brings the Company’s domestic
production to a current average daily rate of over 127 million cubic feet
equivalent per day for the previous week. Following are the highlights of two
wells that were recently completed and not previously released.
In the Masters Creek Field, in Rapides and Vernon Parish, Louisiana, the
Swenco 11 #1 well (100% working interest) was completed in mid-July with an
initial test rate of 1,248 barrels of oil per day (“Bopd”) and 4.2 MMcfpd
on a 30/64-inch choke with flowing tubing pressure of 8,200 psia.
In the Brookeland Field, in Newton and Jasper County, Texas, the Champion
A-796 #1 well (88% working interest) began production in early July at rates
of 976 Bopd and 4.3 MMcfpd on a 34/64-inch choke with 2,150 psia of flowing
tubing pressure.
The Company has two rigs currently drilling in the Masters Creek Field in
Rapides Parish, Louisiana and one rig drilling in the South Burr Ferry Field
in Vernon Parish, Louisiana. The Company expects a barge rig to begin working
in the Lake Washington Field in Plaquemines Parish, Louisiana later this month
under a program to initially drill four to five development wells along with a
sidetrack of one existing well.
Terry Swift, President of Swift Energy Company, noted that, “We are
extremely pleased to see the volume increase in the second quarter and are now
on track for sequential quarterly increases in production. We believe that the
Company’s strategic shift to drilling over the past year will lead to
increased shareholder value. We are excited with the results year-to-date and
look forward to the successful implementation of our plans. The combination of
development and exploratory drilling with strategic acquisitions should
produce promising second-half results, which will position the company for
future growth.”
Swift Energy will conduct its conference call and live webcast on
Wednesday, August 1st, at 9:00 a.m. CDT, to review second quarter financial
and operational results, followed by a discussion of ongoing activities. To
participate in this conference call dial (973) 628-9554 five to ten minutes
before the start of the call and indicate your intention to participate in the
Swift Energy conference call. This call will be available for digital replay
until August 8th by dialing (402) 220-1374. Additionally, the conference call
will be available by accessing the Company’s website at www.swiftenergy.com
and clicking on the event hyperlink.
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
http://www.swiftenergy.com
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