1986: Continued Success Brings Recognition

Because of a drastic plunge in oil prices in 1986—to their lowest level in a decade—Swift Energy suspended its formation of drilling fund partnerships but continued exploratory and development drilling with the participation of the private limited partnerships already formed. Seven exploratory wells and four development wells were drilled in northeastern Wyoming, with three completed as successful oil producers.

By the end of 1986, Swift Energy was operating 357 wells in nine states and had interests in a total of 823 wells in 12 states. The Company’s growth brought it recognition from Financial World as one of the fastest growing U.S. companies under $25 million.

Early in 1986, Swift Energy launched its second series of public income fund partnerships—a $50 million offering identified as Swift Energy Income Partners II. During the year, four partnerships were formed under the series, with investors contributing approximately $35 million through the dealer-manager’s national network of 200 brokerage firms.

To achieve the profit objectives of the income funds, Swift’s management and its staff of geologists, engineers, and land personnel continued evaluations of candidate acquisition properties. They focused not only on the current and future production of existing wells, but also on potential additional production through property enhancements that Swift Energy, as the operator and/or manager of the properties, could implement. During a three-year period ending in December 1986, these teams had reviewed over 500 property packages containing more than 25,000 individual wells and had completed 11 separate transactions. Seven of the transactions were concluded in 1986, covering first interests in a total of 53 oil and gas wells and additional interests in certain wells in which the partnerships had invested in 1985. The wells were located in Alabama, Kansas, Louisiana, and Texas, the seven transactions totaling $9.4 million.

At year end, the Company had 357 producing oil and gas wells under its direct supervision, the gross production from the wells averaging approximately 1,500 barrels of oil and 9 million cubic feet of natural gas per day.

These increasing activities during 1986 allowed Swift Energy to once again reach new levels in revenues (up 38% to $5.0 million) and net income (up 42% to $1.1 million), together with the complete elimination of its long-term debt. The rate of growth exhibited by the Company brought it recognition from Financial World as one of the fastest growing companies under $25 million in the United States.

This page was last updated on Tuesday, June 10, 2008, at 10:02:57 AM.

Copyright © 1994-2008 by Swift Energy Company.
Click here to go to our home page or search page.
Please note the terms of use for the Swift Energy web site.
If you have comments or questions, see our feedback or requests pages.
Contact Swift Energy Company Stockholder Relations through e-mail info@swiftenergy.com or telephone (281) 874-2700.