| Briscoe Ranch Field Updates
October 30, 2009. We acquired interests in the Briscoe Ranch Field in our South Texas area of operation in 2007, along with interests in the Sun TSH Field and the Las Tiendas Field in contiguous counties, as part of an approximately 82,000-acre acquisition for around $248 million. A year later we purchased additional interests in Briscoe Ranch, expanding the total acquisition to approximately 88,700 net acres in the three fields. At year-end 2008, Briscoe Ranch accounted for approximately 67,000 net acres, or 76%, of this acquisition.
We continued to expand our position in these fields during 2009, and as of July 31, 2009, Briscoe Ranch held interests in 61,000 net undeveloped acres in the Olmos formation and 12,000 net undeveloped acres in the Eagle Ford shale.
Located near our AWP Field where we have had two decades of experience in producing efficiently from tight sands, Briscoe Ranch currently produces from the Olmos sand at depths varying from 4,500 to 5,000 feet. The field was discovered in the mid-1950s and initially produced natural gas, with its first oil well drilled in 2005. At year-end 2008, Swift’s reserves in the field were split somewhat evenly between natural gas (46%) and oil and natural gas liquids.
During 2008, 10 of 16 development wells were completed in Briscoe Ranch, with an additional well still drilling at year-end. The well reached its target depth in the first quarter of 2009 and is now awaiting completion. At year-end, Briscoe Ranch had 83 producing wells, all operated by Swift, and 16 proved undeveloped locations (PUDs).
Briscoe Ranch produced 2.3% of Swift’s total 2008 production, which consisted of 100.5 MBoe of natural gas, 83.8 MBoe of natural gas liquids, and 45.7 MBoe of oil. At year-end 2008, the field held 2.5 MMBoe of proved oil and gas reserves, accounting for 2.1% of the company’s total reserves. These reserves were 53.7% oil and natural gas liquids and were 60.0% developed at year-end 2008.
This web page may contain "forward-looking statements" as defined in Section 21E of the Securities Exchange Act of 1934, as amended. Any opinions, forecasts, projections, or other statements other than statements of historical fact are forward-looking statements. Although Swift Energy 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. (See Terms of Use.)
Updates
November 3, 2011: PRESS RELEASE; 2011 THIRD QUARTER 10-Q. During the third quarter, we sold our interest in six fields in South Louisiana, two in Texas, and one in Alabama to EnergyQuest II, LLC effective August 1, 2011. The sales price was $48.8 million, net of $4.7 million in purchase price adjustments and the buyer’s assumption of approximately $27.7 million of asset retirement related to these properties. The sale closed in October, with the sales prices subject to customary post-closing adjustments that are not expected to be material. The fields in Louisiana include Horseshoe Bayou/Bayou Sale, High Island, Bayou Penchant, Jeanerette and Cote Blanche Island. The Texas fields include Bego South and Briscoe Ranch. The Alabama field includes Chunchula.
We will use the net cash proceeds from this transaction (as adjusted for cash flows from effective date through the closing date) to fund a portion of our 2011 capital expenditures.
February 25, 2010: 2009 FORM 10-K. In the Briscoe Ranch Field and two other South Texas fields (Las Tiendas and Sun TSH), we plan to drill from six to ten wells targeting the Eagle Ford shale acreage in 2010. At year-end 2009, we were operating a total of 243 wells in these fields and had 118 proved undeveloped locations for future drilling. Together, the three fields, plus other small South Texas properties outside these fields, contained 13.9 MMBoe (12.3% of the company’s year-end reserves), of which 28.8% was undeveloped. Together, they produced 11.7% of the company’s 2009 production.
In 2009, we drilled two development wells in these fields. (Note: The drilling of both wells began in 2008 and continued into first quarter 2009. One well was in Briscoe Ranch and one in Sun TSH.)
For additional information, please see the latest Form 10-K and Form 10-Q.
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