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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY UPDATES DOMESTIC ACTIVITYHOUSTON, Sept. 26, 2001 - Swift Energy Company (NYSE: SFY; PCX) reported today that it placed the Vaughan #1 well (Rome Prospect with 65% working interest) on production earlier this month, and it is currently flowing 10.2 million cubic feet per day (MMcf/d). The well is located in one of the Company's emerging growth areas, the Garcia Ranch area, which is located in Kenedy and Willacy counties in South Texas. Additionally, a pipeline has been laid connecting the Mallet #1 well (Siena Prospect with 65% working interest) and the Montalvo #1 well (65% working interest) in this same area. The Mallet #1 well is still undergoing production testing at current rates of approximately 500 thousand cubic feet per day (Mcf/d) from one of the lower intervals of several Frio sands encountered in this well. The Montalvo #1 well, shut-in since it was drilled late last year, began initial production testing this past weekend at a rate of 400 Mcf/d. A fourth well is being planned this year in the Garcia Ranch area. The Company also reported that it has completed the drilling of its first development well in the Lake Washington Field in Plaquemines Parish, Louisiana, the SL 212 #102, with a 100 percent working interest. Log analysis indicates the well has 115 feet of net pay in the targeted Miocene sands beginning at a depth of 8,331 feet, with excellent porosity and permeability. Although plans in Lake Washington have been delayed this year because of limited rig availability, the Company currently plans to drill four to five additional wells, including one sidetrack, in this area by the end of the year. A workover rig will be moved into the area within the next two months to complete these wells. Another emerging growth area for the Company, the Wilcox area in Lavaca, Zapata and Goliad counties in Central Texas, has seen three wells drilled this year, including the Post #1 well (Nita #1 Prospect with 76% working interest), the Kinnally #1 well (Falcon Ridge Prospect with 25% working interest) and the Swickheimer G G Estate #1 well (Brandon Prospect with 70% working interest). The Post #1 well, with current production of 1.9 MMcf/d, is scheduled for a fracture stimulation procedure this week, which is expected to increase the current rate of production. The Kinnally #1 well is undergoing initial production testing at a rate of 600 Mcf/d. The Swickheimer G G Estate #1 well was completed and fractured late last week and is currently flowing back at approximately 300 Mcf/d from one sand interval. A fracture stimulation on a second sand interval is planned for next week and will be commingled with this production. In the Woodbine area in San Jacinto County, Texas, the Foster Minerals #1 (Lion Prospect with 49% working interest), is currently undergoing testing in the upper and middle intervals that were found in the Woodbine formation in this well. This well has flowed some gas, and the Company is currently pumping into these intervals to determine the viability of a fracture stimulation procedure that might achieve commercial rates of production. The Jaguar and Bobcat prospects are expected to be drilled in 2002. In the Delacroix area in Plaquemines Parish, Louisiana, the Company began drilling the Delacroix #1 well (Grand Lake Prospect with 57.5% working interest) earlier this month and is currently drilling at approximately 9,400 feet with a proposed target of 16,500 feet. Results from this well are expected at year-end. The non-operated Miami #1 well (Sweetlake Prospect with 15% working interest), in Cameron Parish, Louisiana, also targeting the deeper Miocene sands, has been plugged and abandoned due to mechanical problems, and did not reach its target objective. The Hovden-Tierney 43-3 #1 well (Bullwinkle prospect with 75% working interest) in the Teapot area in Converse County, Wyoming, has been fracture stimulated after encountering 18 feet of net pay in the Teapot sand at 6,500 feet. The well is currently being production tested with a potential second fracture treatment anticipated. Swift is currently planning to drill two additional wells in this area later this year, with a six to ten well program being considered for next year. Three additional development wells are currently drilling and nearing completion in the Toledo Bend area, with one in South Burr Ferry and the remaining two in Masters Creek. Realized natural gas prices for the third quarter are estimated to exceed $2.67 per thousand cubic feet, while oil prices are estimated to exceed $23.00 per barrel. The Company currently expects production in the third quarter to be between 11.5 and 12.0 billion cubic feet equivalent ("Bcfe"). This is approximately four percent below the Company's previous low-end production guidance for third quarter due to timing delays as well as well performance from two wells in the Toldeo Bend area that was below our forecasted rates. Production for the full year is expected to be between 45.1 - 46.1 Bcfe. Terry Swift, President and Chief Executive Officer, noted, "Our 2001 exploration program has developed several new emerging growth areas for the Company to exploit in the coming years. We are delighted with the initial results in the Garcia Ranch and Wilcox areas and are encouraged with what we are seeing in the Woodbine and Teapot areas. We are excited that we have finally begun the exploitation of our recent Lake Washington Field acquisition and are particularly pleased with the results of this initial development well. We believe that our balanced program of development and exploration drilling coupled with acquisitions will achieve the results that will allow us to continue to create value for our stakeholders. However, we are disappointed that our plans for increasing production have faced numerous time delays and that industry inefficiencies have hampered our ability to increase our output more efficiently. We continue to focus on these efforts as well as other opportunities that will further increase our reserves and production." Swift Energy Company is engaged in developing, exploring, acquiring, and operating oil and gas properties, with a focus on onshore natural gas reserves in Texas and Louisiana and 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 08:20:51 AM. Copyright © 1994-2008 by Swift Energy Company. |
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