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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY UPDATES GUIDANCE AND OPERATIONAL ACTIVITYHOUSTON, March 12, 2003 - Swift Energy Company (NYSE, PCX: SFY) today reiterated its guidance for total production for the first quarter of 2003 but is revising the portion of total production attributable to domestic versus New Zealand production. Total production still is expected to total 12.0 to 12.9 Billion cubic feet (“Bcfe”) for the first quarter of 2003. However, due to a third-party pipeline incident in the Lake Washington Field and liquid rejection during natural gas processing, first quarter domestic production is now expected to range from 7.2 to 7.5 Bcfe while production in New Zealand for the first quarter 2003 is expected to range between 4.5 to 5.0 Bcfe due to increased production from the TAWN Fields resulting from higher demand. The Company also announced the details of several additional hedges it has acquired since the last update on February 12, 2003. Domestic Update The Company has experienced a partial shut-in of the Lake Washington Field that is expected to last approximately two weeks, and possibly longer, due to a third-party oil pipeline incident, which resulted in a disruption of operations and requires an investigation downstream of the Company’s primary delivery point in the Lake Washington Field. The operator of the pipeline has repaired the oil pipeline and resumed operations. The Company’s access, however, to the current delivery point will remain shut-in until the cause of the pipeline disruption is determined and rectified. The Company is currently able to sell its production into an alternate location at a reduced rate of production of approximately 3,500 gross barrels per day (B/d) until the Company’s primary delivery point is again available. The Company is also looking at additional alternatives for crude oil sales in order to return the field to full productive capacity while waiting for this pipeline disruption to be fully resolved. The Company estimates that domestic production will be reduced by approximately 0.7 to 1.0 Bcfe during the first quarter of 2003 if this limitation on the sale of crude oil from the Lake Washington Field continues through the end of the quarter. This assumption is reflected in the current guidance. Since its last update, the Company has drilled seven additional wells in the Lake Washington Field. Four of the wells are being completed in the F-sand and have average net pay of approximately 140 feet, and three were dry holes. With the addition of these four successful wells, the Company believes that the current productive capacity in the field is approximately 6,000 gross B/d of crude oil and will increase to approximately 7,000 gross B/d in the second quarter based upon plans for continued drilling operations in the field. In addition to reduced levels of production from the Lake Washington Field due to this pipeline disruption, domestic production for the first quarter of 2003 will also be reduced by up to 0.2 Bcfe resulting from the rejection of certain liquids during natural gas processing in order to capture the higher price for natural gas versus the price for natural gas liquids. New Zealand Update Recent facility upgrades and increased natural gas demand in New Zealand have allowed the TAWN fields to produce approximately 50 million cubic feet equivalent per day during the first two months of this first quarter, which has increased the expected total production in New Zealand during this period. Additionally, the Company recently completed drilling the Kauri-F1 well targeting the shallow Manutahi Sand in the Rimu/Kauri area. The objective sand was encountered, and the decision has been made to set pipe and complete the well. Production testing of this well will occur during the second quarter of 2003. Hedging Activities The Company announced that since its last update on February 12, 2003, it has continued to enter into additional price risk management transactions. The Company purchased participating cashless collars for 30,000 barrels for May with a floor price of $26.00 per barrel and a ceiling price of $35.05 per barrel. The Company will participate in 60% of any prices received above this ceiling price. The Company also purchased natural gas floors for 100,000 million Btu (MMBtu) per month from April 2003 through and including October 2003 at a floor price of $4.75 per MMBtu. Swift Energy Company engages in developing, exploring, acquiring, and operating oil and gas properties, with a focus on onshore and inland waters 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, 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 08:28:28 AM. Copyright © 1994-2008 by Swift Energy Company. |
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