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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY TO BEGIN EXTENSIVE TESTING OF KAURI-A1 WELLHOUSTON, July 23, 2001 - Swift Energy Company (NYSE, PCX: SFY) reported today that the Kauri-A1 well in New Zealand has completed drilling to a planned total depth of 14,760 feet (4,500 meters). Significant hydrocarbon-bearing intervals have been encountered in this well at various depths. The Company intends to run a suite of electric logs, take sidewall cores, perform a check shot survey and set additional production casing to a depth of 11,480 feet (3,500 meters) followed by extensive testing and evaluation of specific intervals. The initial hydrocarbon-bearing interval encountered in this well was found in a shallow section of Miocene-Pliocene age sandstones, the Manutahi Sand, beginning at a depth of 3,746 feet (1,142 meters) with a gross thickness of 295 feet (90 meters). A suite of electric logs was run and sidewall cores were obtained before setting 13 3/8-inch casing over this section. Petrophysical analysis of this data, along with recently completed laboratory analysis of the sidewall cores, confirm an oil column of approximately 39 feet (12 meters) with excellent porosities and permeabilities ranging up to 27% and over 800 millidarcies, respectively. Based on electric log analysis and saturation measurements of the sidewall cores, an oil/water contact was found at 3,815 feet (1,163 meters). Current geologic mapping indicates that this location is approximately 66 feet (20 meters) low to the top of the structure that covers approximately 1,000 acres of aerial extent in this fault block. The Company intends to contract a second rig to drill a shallow well to further evaluate this very prospective area later this year. The second significant hydrocarbon-bearing interval encountered in this well was found in Miocene age sandstones, the Kauri Sand, beginning at a depth of 9,473 feet (2,888 meters) and extending approximately 872 feet (266 meters) to a depth of 10,345 feet (3,154 meters). This interval largely consists of multiple sections of sandstones and claystones that yielded good oil and gas shows associated with drilling breaks and appears to be hydrocarbon bearing based on log analysis. Further petrophysical analysis of this data indicates a hydrocarbon-bearing sandstone interval of approximately 577 feet (176 meters) with good porosity. This same interval was also encountered, although not tested, in all of the previously drilled Rimu wells with varying degrees of hydrocarbon shows. This interval in the Kauri-A1 well has greater sand development with mud log shows while drilling significantly better than in any of the previous wells drilled at Rimu. Extensive testing and evaluation of this interval over the next several months will be conducted in this well bore to determine the commercial viability of the Kauri Sand. The third and fourth hydrocarbon-bearing intervals encountered in this well were found in the Upper Tariki Sand beginning at a depth of 11,126 feet (3,392 meters) and the Upper Rimu Limestone beginning at a depth of 11,270 feet (3,436 meters). Both of these intervals have also been present in all five wells drilled at Rimu. Based upon analysis of mud logs as well as the logging while drilling tools, the Upper Tariki appears to have a gross thickness of 30 feet (9 meters) and the Upper Rimu Limestone appears to have a gross thickness of 33 feet (10 meters). A full suite of electric logs will be run, and production casing will be set over these intervals. Further evaluation of these intervals is expected to be conducted in this well bore in order to determine commercial viability of these intervals at this location. Drilling below the Upper Rimu limestone in the Kauri-A1 well, the Company anticipated encountering a major thrust belt of metasediments similar to that found in the Rimu-B1 well prior to breaking through to the deeper targets. The interval of metasediments encountered in this well is more fully developed than anticipated, and drilling to the target depth did not break through the thrust. It now appears that future drilling operations will need to be targeted further to the west in order to break through this thrust and encounter the prospective targets of the Lower Tariki Sand, Lower Rimu Limestone and Cretaceous age sandstones at this depth. The Company currently plans to move the drilling rig back to the Rimu B pad to continue the delineation of the Rimu area and prepare for the commencement of production operations by the beginning of next year. The next exploratory well to test these deeper targets at Kauri will be planned following a complete evaluation of the information received from these prospective intervals in Kauri-A1 and the further interpretation of the new information from this well. The Company also reported that extended production testing has continued at the Rimu A pad. The Rimu-A1 well began production testing on May 31 and is currently producing at an average rate of 961 barrels of oil per day and 2.9 million cubic feet of gas per day over the last five days. The Rimu-A1 well was shut in for several days while additional operations were conducted on the A pad, but it is now back on production. A preliminary acid treatment was conducted on the Rimu-A3 to evaluate the impact of a hydrochloric acid treatment on a limited interval at the base of the Upper Tariki Sand. It is anticipated that a second acid treatment with diverters and a possible fracture stimulation will be conducted on the entire Upper Tariki Sand interval in this well before being placed on production. Construction of the Rimu Production Station, including the oil and gas separation and processing facilities, is on schedule for a year-end commissioning. Terry Swift, President and CEO of Swift Energy Company, noted that, “The Kauri-A1 has continued the trend of finding multiple, hydrocarbon-bearing zones in each of our wells drilled in the Rimu/Kauri area. We are certainly intrigued by the discovery of the new intervals of the Manutahi Sand and the Kauri Sand found in this well, and we expect to concentrate considerable efforts to determine their ultimate productivity. Additionally, we are confident that we can target the next well further to the west and break through this major thrust of metasediments at a shallower depth to intersect the deeper targets. Based upon all of the information we have to date, we continue to believe that Kauri is a world-class exploration prospect with the potential of over 200 million barrels of oil equivalent.” 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. (Toronto: 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 08:20:33 AM. Copyright © 1994-2008 by Swift Energy Company. |
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