SWIFT ENERGY COMPANY NEWS

SWIFT ENERGY UPDATES OPERATIONAL ACTIVITY, EXPANDS GUIDANCE AND HOLDS ANNUAL MEETING


HOUSTON, May 14, 2002 - Swift Energy Company (NYSE, PCX: SFY) reported that the CM #187 well (100% working interest) encountered approximately 340 feet of net pay as indicated by log analysis. This is the sixth well of a 20 well development program planned for 2002 in the Lake Washington Field in Plaquemines Parish, Louisiana. This well was drilled to a depth of 6,158 feet and intersected three different hydrocarbon-bearing sands, including one of the F-series sands, a horizon that has not previously produced in the field. Completion operations on the wells in this development program are scheduled to begin in early June with production expected to commence in July.

The Company also reported that initial natural gas sales are expected to begin next week from the Rimu Production Station (“RPS”) in New Zealand. The commissioning process for the RPS is almost complete. Current production levels, with only the Rimu-A1 well on production, are averaging approximately 900 to 1,000 barrels of oil and 2 to 3 million cubic feet of natural gas per day. These volumes are expected to increase throughout the year as additional wells are brought on production. Initial sales of natural gas liquids, which are being processed at the RPS, are expected to take place in June.

Additional drilling activity in New Zealand is planned to begin in early June with the spud of the Kauri-A4. The primary target horizons of this well will be the Kauri and Lower Tariki sands with a secondary objective of the Kapuni group sands at deeper intervals. Drilling is expected to take up to 90 days, and the rig will then move to Rimu where it will drill an additional development well targeting the Upper Tariki sands.

Terry Swift, President and Chief Executive Officer noted that, “Having drilled the first four wells of our Lake Washington program this quarter, we are confident that we can continue to add about three million barrels of proven oil reserves from this new core area each quarter. We will begin completing these wells in June as part of our program to more than double production from this field before year-end. We are also very pleased with the successful processing of natural gas liquids at our Rimu Production Station, which paves the way forward for increased oil and gas production volumes from New Zealand. Additionally, the Kauri deep exploration well, which begins drilling this quarter, will test for the presence of reservoir quality Kauri, Tariki, and Kapuni sands on a significant structural high. The Kauri exploratory test is a world class prospect.”

Based upon detailed examination of current operating and marketing conditions, the Company also released updated and expanded guidance for the second quarter and for the full year 2002. Among other things, the Company expanded its guidance to separate natural gas, crude oil and natural gas liquids into three categories, which the Companies believes is more reflective of its operations, both domestically and in New Zealand.

Swift Energy’s Annual meeting of Shareholders will be held today at the Marriott North at Greenspoint Hotel, 255 North Sam Houston Parkway, Houston Texas 77060 at 4:00 p.m. CDT. The public is invited to attend to hear management’s review of the Company’s 2001 activities and discuss the opportunities for 2002.

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 consistently grown its proved oil and gas reserves, production, and cash flow 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, guidance or other statements other than statements of historical fact, are forward-looking statements. These statements are based upon assumptions that are subject to change and to risks, especially volatility in oil or gas prices, and lately availability of services and supplies. 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. Estimates of future financial or operating performance provided by the Company are based on existing market conditions and engineering and geologic information available at this time. Actual financial and operating performance may be higher or lower. Future performance is dependent upon oil and gas prices, exploratory and development drilling results, engineering and geologic information and changes in market conditions.


  


SECOND QUARTER AND FULL YEAR 2002
GUIDANCE ESTIMATES
- In Thousands Except Per Production Unit Amounts -
 Description

Guidance For
Second Quarter 2002

  

Guidance For
Full Year 2002
       

Production Volumes (Mcfe)

 12,000 - 13,000   49,000 - 54,000

    Domestic Volumes (Mcfe)

 8,500 - 9,000 34,000 - 37,000
    New Zealand Volumes (Mcfe) 3,200 - 4,000 14,000 - 17,000
Production Mix:
  Domestic

    % Natural Gas

 46% - 50%   45% - 49%

    % Crude Oil

 33% - 37%   35% - 39%

    % Natural Gas Liquids

 15% - 17%   15% - 17%
  New Zealand

    % Natural Gas

 64% - 68%   63% - 67%

    % Crude Oil

 22% - 26%   23% - 27%

    % Natural Gas Liquids

 8% - 12%   8% - 12%
Product Pricing:
  Domestic Pricing:
    Natural Gas (per Mcf)
       NYMEX differential (Note 1) -$0.20   to    -$0.30   -$0.25   to    -$0.35
    Crude Oil (per Bbl)
       NYMEX differential (Note 2) -$1.50   to    -$2.00   -$1.50   to    -$2.00
    NGLs (per Bbl)
       Percent of NYMEX Crude 50% - 55%   50% - 55%
  New Zealand Pricing:
    Natural Gas (per Mcf)
       Contract Price (Note 3) $1.10   to    $1.20   $1.10   to    $1.20
    Crude Oil (per Bbl)
       TAPIS differential (Note 4) -$2.00   to    -$2.50   -$2.00   to    -$2.50
    NGLs (per Bbl)
       Contract Price (Note 5) $10.00   to    $12.00   $10.00   to    $12.00
Oil and Gas Production Costs:
  Domestic

    Lease Operating Costs (per Mcfe)

 $0.50  -  $0.55   $0.55 - $0.60

    Severance & Ad Valorem Taxes

        (as % of Revenue dollars)

 9.5% - 10.5%   9.5% - 10.5%
  New Zealand

    Lease Operating Costs (per Mcfe)

 $0.40  -  $0.45   $0.40  -  $0.45

    Government Royalty

        (as % of Revenue dollars)

 9.0% - 10.0%   9.0% - 10.0%
       

Other Costs: 

  

   G&A/Mcfe

 $0.18 - $0.20   $0.16 - $0.18

   Interest Expense/Mcfe

 $0.50 - $0.55   $0.45 - $0.50

   DD&A/Mcfe

 $1.15 - $1.20   $1.10 - $1.20
Supplemental Information:

   Capital Expenditures

  

      Drilling Activities

 $20,000 - $25,000  

$75,000 - $85,000

      Acquisition/Dispositions, net

 $0  

$0 - $58,000

   Capitalized G&A

 $1,700 - $1,900  

$7,000 - $8,000

   Capitalized Interest

 $1,400 - $1,600   $5,500 - $6,000

   Basic Weighted Average Shares

26,700- 27,000

  

26,300- 26,600

   Diluted Computation:

      

       Weighted Average Shares

27,200- 28,000

  

27,000- 28,000

   Effective Tax Rate

36%

  

36%

   Deferred Tax Percentage

98%

  

98%

 

Note 1: Average of monthly closing Henry Hub NYMEX futures price for the respective contract months, included in the period, which best benchmarks the 30-day price received for domestic natural gas sales.

Note 2: Average of daily WTI NYMEX futures price during the calendar period reflected, which best benchmarks the daily price received for the majority of domestic crude oil sales.

Note 3: Fixed contractual price with Contact Energy and Genesis Power in New Zealand.

Note 4: TAPIS is typically discounted within a $0.50 to $1.00 range of WTI.

Note 5: Fixed contractual price with RockGas Limited in New Zealand.

 

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, guidance or other statements other than statements of historical fact, are forward-looking statements. These statements are based upon assumptions that are subject to change and to risks, especially volatility in oil or gas prices, and lately availability of services and supplies. 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. Estimates of future financial or operating performance provided by the Company are based on existing market conditions and engineering and geologic information available at this time. Actual financial and operating performance may be higher or lower. Future performance is dependent upon oil and gas prices, exploratory and development drilling results, engineering and geologic information and changes in market conditions.

 

 

16825 Northchase Drive, Suite 400, Houston, Texas 77060
http://www.swiftenergy.com

 

This page was last updated on Monday, January 10, 2005, at 08:22:48 AM.

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