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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY COMPLETES ACQUISITION OF ASSETS FROM ANTRIM ENERGY AND UPDATES NEW ZEALAND ACTIVITYHOUSTON, March 20, 2002 - Swift Energy Company (NYSE, PCX: SFY) announced today that Swift Energy New Zealand Limited (“SENZ”) completed the acquisition of all of the New Zealand assets of Antrim Oil and Gas Limited (“Antrim”), a subsidiary of Antrim Energy Inc. (Toronto: AEN), through the issuance of 220,000 shares of Swift Energy Company common stock and approximately $530,000 in cash effective as of November 1, 2001. The Company also announced that in connection with the completion of the acquisition, it filed a registration statement with the Securities and Exchange Commission relating to the 220,000 shares of the Company’s common stock issued to Antrim so that Antrim or certain others may sell all or a portion of such shares from time to time. SENZ acquired Antrim’s interests in two petroleum exploration permits located in the Taranaki Basin of New Zealand. These interests include a 5% interest in the Swift-operated petroleum exploration permit (“PEP”) 38719, where the Rimu and Kauri discoveries are located, increasing the Company’s interest in this permit to 95%. An additional 7.5 % interest was also acquired in PEP 38716 increasing the Company’s interest in this permit to 15%. The operator of PEP 38716 is currently moving in a drilling rig to begin drilling a sidetrack in the Huinga prospect. The Rimu/Kauri and Huinga license areas consist of 50,301 and 33,028 gross acres, respectively. Since the acquisition in January 2002 of the TAWN assets from Shell NZ, the production levels of these assets have averaged over 38 million cubic feet equivalent per day (“Mmcfe/d”). This is over 15% higher than was originally anticipated (32 to 33 Mmcfe/d) due to increased demand for natural gas in New Zealand. The natural gas wells in the Tariki and Ahuroa mining licenses have substantially higher rates of productivity and are used by the purchaser to balance the needs for energy. These recent increased levels are high because of increased demand that resulted from previous drought conditions in the country, and the resulting hydroelectric shortfall, and they are not expected to continue indefinitely. The Rimu Production Station has been completed and is currently undergoing the commissioning process to bring it online. First production and sale of hydrocarbons are expected to begin next week. Testing will continue over a period of several weeks at different levels and from different wells before establishing a continual flow through the production station. The Company also reported that it had recently completed drilling the Rimu-A2A well to a total depth of 12,273 feet. The well encountered approximately 170 gross feet (51 feet of net pay) of Upper Tariki sandstone beginning at 11,758 feet. Log analysis indicated an average porosity of 16% with sidewall cores showing average porosities of 20%. Analysis of the sidewall cores demonstrated permeabilities ranging from 12 to 40 millidarcies and averaging approximately 18 millidarcies across the section of Upper Tariki sandstone. Due to the presence of numerous shale stringers and sidewall core measurements indicating a significant section of low permeability sandstone, the Company expects to perform a hydraulic fracture stimulation prior to final completion. Casing has been set in the well, and completion operations are underway. The Company also reported that Shell NZ and SENZ are evaluating various approaches to develop and explore PEP38719. The previously announced option, which provides for Shell NZ to acquire a 25% interest in PEP 38719, remains in effect. Discussions are continuing between the Company and Shell NZ, and a decision on this option and the associated future capital program is expected within the next 30 to 60 days. The Company does not know the decision criteria and capital allocation issues that will be used by Shell NZ, nor the outcome of their decision. Several additional companies have expressed an interest in the permit since this option was announced, and the Company intends to pursue discussions with them and others regarding the purchase of up to a 25% interest in this Rimu/Kauri permit in the event that Shell NZ does not elect to exercise this option. Terry Swift, President and CEO of Swift Energy Company, noted, “We continue to be pleased with our New Zealand operations. The acquisition of the Antrim interests help to consolidate our interests in our Rimu/Kauri discoveries and enhance our position in the Huinga prospect, while strengthening our balance sheet with the issuance of equity. We are looking forward to bringing Rimu on production just 27 months after the initial discovery. The acquisition of the TAWN assets clearly achieves numerous strategic objectives for us. The assets provide a good foundation for our operations, and we are particularly pleased that they have performed better than our initial expectations. We are also pleased with the interest expressed by others in the Rimu/Kauri permit, and we look forward to possibly bringing in a significant partner in this area during 2002. New Zealand has established itself as a significant core area for the Company and is expected to contribute approximately 20% of the first quarter 2002 production.” 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 08:22:09 AM. Copyright © 1994-2008 by Swift Energy Company. |
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