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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY COMPLETES ACQUISITION OF TAWN ASSETS IN NEW ZEALANDHOUSTON, January 28, 2002 - Swift Energy Company (NYSE, PCX: SFY) announced today that Swift Energy New Zealand Limited (“SENZ”) has completed the acquisition of Shell New Zealand’s (“Shell NZ”) affiliate, Southern Petroleum (New Zealand) Exploration Limited (“Southern NZ”), for approximately US $54.4 million in cash utilizing funds available under the Company’s bank line of credit. Southern NZ owns interests in four onshore producing oil and gas fields, hydrocarbon-processing facilities with excess capacity and pipelines connecting the fields and facilities to export terminals and markets. Terry Swift, President and CEO of Swift Energy Company, noted, “We are pleased to have successfully completed this transaction reported in early December 2001. With the acquisition of these assets, Swift becomes a significant producer of oil and natural gas in New Zealand. Over and above this substantial acquisition, we are looking forward to the start up of the Rimu Production Station later this quarter that will bring our Rimu/Kauri properties on production, and ultimately, to the full integration of these two significant assets. We believe that the excess processing capacity, pipeline infrastructure and access to markets, acquired as part of the TAWN acquisition, can add significant additional value as we further expand our position in New Zealand.” As reported earlier, the assets acquired include the onshore TAWN properties, which are located in the Taranaki Basin of the North Island of New Zealand, approximately 17 miles north of Swift’s Rimu discovery. Swift is acquiring a 96.76% working interest in four Petroleum Mining Licenses (“PML”), collectively known as the TAWN properties, which include the Tariki Field (PML 38138), the Ahuroa Field (PML 38139), the Waihapa Field (PML 38140) and the Ngaere Field (PML 38141). The four fields include 17 wells with net production for the first quarter 2002 expected to average at least 900-1000 barrels of oil per day, 22-23 million cubic feet of natural gas per day and 400-500 barrels per day of natural gas liquids, or a total net production of 30-32 million cubic feet equivalent per day. The net proved reserves as of November 1, 2001 are estimated to be approximately 65.0 billion cubic feet equivalent (“Bcfe”) with 74% of the reserves being natural gas. The natural gas is sold under a long-term contract to Contact Energy. The oil will be sold to an affiliate of Shell NZ under a separate marketing agreement. Fiscal terms for the oil and gas reserves call for a royalty payable to the Crown at an effective royalty rate of approximately 10%. Net cash flow of the acquired interests is estimated to have been approximately $1.2 million for December 2001. SENZ and Shell NZ have also entered into several agreements with regard to oil storage facilities, hydrocarbon transportation, crude oil marketing as well as exploration and development. SENZ intends to offer to Shell NZ participation in future exploration and development of certain deep oil and gas horizons located within the TAWN license areas (“TAWN Deep Rights”). Shell NZ would have up to a year to elect whether to acquire up to 50% of the TAWN Deep Rights owned by SENZ. SENZ will remain operator of any future exploratory or development drilling within the TAWN license areas. Effective with this closing, SENZ granted Shell NZ a short-term option to acquire an undivided 25% interest in Petroleum Exploration Permit 38719, which includes the Rimu/Kauri area, as well as a 25% interest in the Rimu Production Station (“Rimu Option”). Shell has already begun their due diligence of PEP 38719, and a decision by Shell is expected before the end of the first quarter. The Rimu Option is subject to numerous notifications, governmental approvals and consents. Swift does not know if Shell NZ will exercise this option. With the closing of this acquisition, SENZ now holds interests in four petroleum mining licenses and four exploration permits in New Zealand including 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. Swift Energy Company engages in developing, exploring, acquiring, and operating oil and gas properties, with a focus on onshore oil and 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 grown its 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 08:21:40 AM. Copyright © 1994-2008 by Swift Energy Company. |
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