|
SWIFT ENERGY COMPANY NEWSSWIFT ENERGY UPDATES NEW ZEALAND ACTIVITY -- TESTING KAURI-A1, KAURI-A2 AND DRILLING RIMU-B3 WELLSHOUSTON, October 24, 2001 - Swift Energy Company (NYSE, PCX: SFY) reported today on the status of interim testing and drilling operations on three wells in New Zealand. The Kauri-A1 well, which tested hydrocarbons from the Upper Tariki sand, will now begin the testing of the Kauri sands. Preparations are underway to install artificial lift equipment in the Kauri-A2 well, which successfully tested oil from the shallow Manutahi sand. The Rimu-B3 well is being sidetracked to target the Upper Tariki sand just east of its current location. The Upper Tariki sand in the Kauri-A1 well was perforated over an approximate 30-foot (9-meter) interval beginning at a depth of 11,142 feet (3,397 meters) and flowed at an initial rate of approximately 500 barrels of oil equivalent per day (“Boe/d”), despite the lack of a good cement bond and an unsuccessful cement squeeze prior to perforation. However, after shutting in the well to install test separator equipment because of black smoke from the well, it then flowed at rates ranging from 20 to 146 Boe/d of 34-degree API gravity oil with minimal amounts of water. Analysis of core samples taken from this interval indicates porosities of up to 22% and permeabilities up to 180 millidarcies. This zone will be temporarily plugged back so that the planned testing operations in three distinct areas of the Kauri sand can begin. The Kauri sand, beginning at a depth of 9,473 feet (2,888 meters) in the Kauri-A1 well and extending approximately 872 feet (266 meters) to a depth of 10,345 feet (3,154 meters), 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. Petrophysical analysis of the data from this well 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 and better mud log shows than any of the previous wells drilled at Rimu. The shallow Kauri-A2 well, the second well drilled from the Kauri A pad, was perforated in the Manutahi sand over a 33-foot (10-meter) interval beginning at a depth of 3,815 feet (1,163 meters). The well flowed under natural conditions at rates ranging from 39 to 55 Boe/d of 16-degree API gravity oil with minimal amounts of water. Preliminary testing of the well was performed using several jet pumping designs for the artificial lift system, without sand control measures. During this preliminary pumping evaluation, the well produced small amounts of sand (less than 2% by volume) and tested at rates of up to 133 Boe/d. Subsequent wireline operations confirmed that the well’s productivity was not at capacity due to sand migration into the wellbore. Sand-fill was confirmed over 50% of the perforated interval. Following additional testing, the Company plans to gravel-pack the well and install pumping equipment with a capacity in excess of 400 Boe/d. Analysis of core samples taken from this interval indicates a hydrocarbon-bearing interval of approximately 66 feet (20 meters), which is about twice that determined from the initial log analysis. Laboratory core analysis indicates porosities of up to 29% and permeabilities up to 810 millidarcies. The Rimu-B3 well is currently being plugged back and sidetracked at a depth just below the 210-foot (64-meter) interval of sandstone beginning at 5,186 feet (1,581 meters) where substantial hydrocarbon shows were observed in the mud log, with free oil in the mud cuttings and electric log analysis indicating porosities of 27%. Numerous sidewall core samples, showing oil fluorescence of up to 80%, have been taken in this interval and are currently being analyzed for porosity and permeability. Drilling operations will resume as soon as additional equipment is installed on the rig to handle a synthetic oil-based mud system. The well was initially designed to target the Upper Tariki sand, but did not encounter either the Upper Tariki sand or Upper Rimu limestone in the upper thrusted section. The well, which was drilled to a total measured depth of 14,875 feet (4,535 meters), encountered hole problems, and electric logs could not be obtained in the deeper horizons below 10,447 feet (3,185 meters) and drilling operations were suspended. Paleontology analysis of the cuttings indicated the well had encountered Eocene sands at a measured depth of 14,612 feet (4,455 meters) with coal and hydrocarbon shows observed in the mud log. The Company expects to encounter the Upper Tariki sand in the sidetrack at an approximate measured depth of 12,267 feet (3,740 meters), which is approximately 3,411 feet (1,040 meters) from the Rimu-B1 well. Acquisition of approximately 18.6 miles (30 kilometers) of new 2-D seismic data was completed this week in Petroleum Exploration Permit 38730, located north of the Rimu/Kauri area in the Taranaki Basin. The Company holds 100% interest in this permit covering approximately 48,900 acres, and this new seismic data is being acquired to further evaluate the shallow Rata Prospect. The Rimu Production Station, including the oil and gas separation and processing facilities, is under construction and is expected to be operational during the first quarter of next year. Terry Swift, President and CEO of Swift Energy Company, noted, “Although these are just interim results, we continue to be pleased with what we see in New Zealand. The testing of each of the Kauri wells is of particular importance for several reasons. To begin with, the productivity of the Upper Tariki sand at the Kauri location extends this play approximately five miles to the south of Rimu. Additionally, the Kauri sand found in the Kauri-A1 well is much thicker than any of the other hydrocarbon-bearing zones that we have seen in any of the other wells, and the results of this testing operation will tell us a lot about the potential productivity and reserves for this sand. “The interim results from testing the shallow Manutahi sand in the Kauri-A2 well are particularly encouraging, and we have initiated plans to build new pads for additional drilling next year. It is also important to note that this crude oil did not have the higher wax content that is seen in many of the oil wells in the Taranaki Basin. Development of this shallow area could bring some early cash flow and increased economics to this project. “The Rimu-B3 well is another example of the complex geology in this region. While we are disappointed that we did not encounter the Upper Tariki in the initial wellbore, we expect to see it in the sidetrack. Additionally, we did encounter a particularly interesting sand at just below 5,000 feet that is potentially productive and can be evaluated at a future date. Furthermore, we were encouraged to find Eocene sands at deeper intervals with hydrocarbon shows. This only enhances the prospectivity of the next deep test at Kauri. “Our exploratory and development drilling activities continue to complement and strategically enhance our exploitation and acquisition efforts both domestically and internationally.” Swift Energy New Zealand Ltd., as operator, holds a 90% interest in the permit where the Rimu and Kauri discoveries are located, which covers approximately 50,000 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 engages 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
|
|||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
This page was last updated on Monday, January 10, 2005, at 08:21:04 AM. Copyright © 1994-2008 by Swift Energy Company. |
||||||||||||||||||||||||||||
|
|
