October 30, 2009. The Central Louisiana/East Texas core area covers four parishes in Central Louisiana and two counties in East Texas and includes four producing fields in which Swift has working interests (see map). Three of the fields are in Louisiana: the Masters Creek Field located on the adjacent southern corners of Vernon Parish and Rapides Parish with a slight overlap into Allen Parish; the Burr Ferry Field (subdivided into North Burr Ferry and South Burr Ferry) located in western Vernon Parish; and the South Bearhead Creek Field located in the southwest portion of Beauregard Parish. The fourth field is the Brookeland Field in Texas, which straddles the common border of Texas’ Newton County and Jasper County and extends to the Louisiana state line. The Asset Development Team assigned to this area also has oversight responsibility for two fields in Alabama in which we have small interests—the Chunchula Field in Mobile County and the Frisco City Field in Monroe County.

Click here for interactive map of all Swift properties.

The Central Louisiana/East Texas area provided 10.3% of our total 2008 company production of 10.0 MMBoe, with sales of 1.03 MMBoe for $84.7 million. Of the 10.3% production contribution, approximately one-half came from the South Bearhead Creek Field.

At year-end 2008, the Central Louisiana/East Texas area held 15.8% (18.5 MMBoe) of the company’s oil and gas reserves. The reserves consisted of 66.6% oil and natural gas liquids and were 41.1% developed.

We began operations in the Central Louisiana/East Texas area in 1998 when we made our initial acquisition (the Toledo Bend acquisition) that included interests in all the fields except those in South Bearhead Creek, which we obtained in two separate acquisitions in late 2005. Brookeland, Burr Ferry, and Masters Creek all produce from the Austin Chalk trend; South Bearhead Creek produces primarily from the upper and lower Wilcox sands.

While we pursued a vigorous and highly successful horizontal drilling program in the Austin Chalk trend from 1998 through 2001, the rapidly changing industry environment during 2001 (plunging product prices, soaring drilling and operating costs, and declining stock prices) caused us to adopt a strategy that minimized further drilling in the Austin Chalk. Instead, we began focusing on long-lived reserves that would give us stable, long-term production as opposed to the Austin Chalk reserves where the production typically declines rapidly after early payout. With that strategy still in place, we have drilled few wells in the Austin Chalk in the Central Louisiana/East Texas area since 2001. During 2008, we drilled one well in the Masters Creek Field that was not successful. Also in 2008 we began a production enhancement program in both Masters Creek and Brookeland.

We have continued drilling to the Wilcox sands of South Bearhead Creek, since wells drilled to these sands typically have longer production profiles. During 2008, we had 100% success in drilling five development wells in this field. We also participated with a small working interest in a successful nonoperated well drilled in the Chunchula Field in Mobile, Alabama. But further drilling in these and all our other fields ceased in the first quarter of 2009 due to the plunge in product prices in late 2008. We plan to resume drilling in South Bearhead Creek when our overall drilling program is reinstituted. At year-end 2008, this field had 16 proved undeveloped locations (PUDs).

Drilling in the Austin Chalk fields, which together have 20 PUDs, will largely remain on hold as long as we continue our focus on long-lived reserves. However, beginning in 2010, we expect to resume drilling in the Burr Ferry Field as part of a joint venture agreement with Anadarko E & P Company LP for development and exploitation of the Austin Chalk trend in that field, especially in South Burr Ferry.

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 (in reverse chronological order)

May 3, 2012: PRESS RELEASE. During first-quarter 2012, we completed the Exxon Corp #10-1 well in our Central Louisiana/East Texas area. This well, which was a fourth-quarter 2011 well drilled to the Austin Chalk in our Masters Creek field in Vernon Parish and Rapides Parish, Louisiana, was a successful proof-of-concept well that increases our ability to down space on previously developed acreage units in the area.

In the Burr Ferry field in Vernon Parish, our partner has two drilling rigs operating, both targeting the Austin Chalk. We expect to participate in up to six non-operated wells in this area during 2012.

February 23, 2012: PRESS RELEASE. During the fourth quarter of 2011, one operated well was drilled to the Austin Chalk formation in the Masters Creek field. Upon completion, the Exxon Corp. #10-1 produced hydrocarbons at initial test rates of 836 barrels of oil per day and 5.4 MMcf of natural gas per day with flowing tubing pressure of 2,565 psi on a 48/64-in. choke. This well also produced significant volumes of water during this preliminary test and will not be completely cleaned up until it is connected to production facilities. Drilling operations were halted at approximately 2,500 feet, or approximately 50%, into the planned lateral length of 5,000 feet. This well will be placed on production once facility construction is completed later in the first quarter. Production will be monitored for an extended period of time to measure the reservoir properties of this well.

The GASRS 20-1 well, drilled during the third quarter of 2011 and completed during the fourth quarter in the Burr Ferry field in Vernon Parish, encountered numerous hydrocarbon shows during drilling operations and tested at rates consistent with recent results in the area for a short period of time. Previously disclosed mechanical difficulties experienced during the initial completion and cleanup of the well could not be remedied, which made it impossible for the well to produce commercial quantities of hydrocarbons. Based on drilling results and short lived production performance, this well is a candidate to be sidetracked.

For 2012, Swift Energy is targeting production to increase 14% to 20% and proved reserves to increase 10% to 15%, over respective 2011 levels, with a focus on oil and liquid rich opportunities.

November 15, 2011: PRESS RELEASE. Swift Energy announced preliminary plans for 2012 capital expenditures of $575 to $625 million. These expenditures will be allocated primarily towards drilling and completion activity, with approximately 75%–80% of expected expenditures focused on the company’s liquids rich acreage in the Eagle Ford shale and the Olmos sands in South Texas. The remainder of 2012 expenditures is expected to be directed towards drilling oil wells in Southeast Louisiana and Austin Chalk oil and natural gas development wells in our Central Louisiana/East Texas core area.

Based upon these preliminary spending plans for next year, the Company is targeting production to grow 20%–25% and reserves to grow 15%–20% over 2011 levels.

November 3, 2011: PRESS RELEASE; 2011 THIRD QUARTER 10-Q. In our Central Louisiana/East Texas core area, one operated well and one non-operated well were drilled, both targeting the Austin Chalk formation in the Burr Ferry field in Vernon Parish, LA.

The GASRS 16-1 well, a non-operated well, was completed in the Austin Chalk and had an initial production rate of 207 barrels of oil per day and 1.3 MMcf of gas per day with flowing casing pressure of 1,250 psi on a 25/64-in. choke. This well, drilled near the southern extent of our joint operating area, encountered fewer natural fractures than the wells drilled farther north. This well is important in understanding the geology in the area, which is essential to future development plans.

The GASRS 20-1, an operated well, finished drilling operations during the third quarter and was completed in the Austin Chalk. A mechanical problem occurred during the initial cleanup of the well that required a workover rig to resolve. A workover rig is currently on this well and work is under way to remedy the issue. This well bore remained in zone for the extent of the 4,254 foot lateral leg and encountered high natural fracture density and strong tubing pressure.

Our production in the Central Louisiana/East Texas area during the third quarter was 292 MBoe, as compared to 328 MBoe in the third quarter of 2010.

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.

September 6, 2011: PRESS RELEASE. Because of the risk of adverse weather conditions caused by Tropical Storm Lee, we implemented standard shut-down procedures in several of our coastal Louisiana properties, including the Lake Washington field in Plaquemines Parish, the Bay de Chene field in Jefferson and Lafourche Parishes, and the Horseshoe Bayou, Bayou Sale, and Cote Blanche Island fields in St. Mary’s Parish.  All nonessential personnel and equipment were evacuated from these fields. 

Field operations necessary to safely bring production levels back to normal levels have begun. Some minor damage has been observed in certain areas but is not expected to impact ongoing operations.  Current 2011 production and operational forecasts will be updated if necessary once the impact of Tropical Storm Lee on Swift Energy’s operations is known.

August 4, 2011: PRESS RELEASE; 2011 SECOND QUARTER WEBCAST. We had no drilling or completion activity in the Central Louisiana /East Texas core area during the second quarter of 2011; however, we are currently (in the third quarter) drilling one operated well and participating in one non-operated well that are both targeting the Austin Chalk formation in the Burr Ferry field.

Also in the third quarter, we have expanded our original joint operating area in the Burr Ferry field with our partner (Anadarko E&P Co.) from 33,623 gross acres to approximately 73,000 gross acres. We own a 50% working interest in the joint area and also own approximately 39,000 fee mineral acres in the area.

In addition, we have entered into a second agreement to jointly develop approximately 32,000 gross acres adjacent to the first operating area.  We own a 45% working interest in the second joint area.

Drilling activity currently under way in the first operating area is expected to continue with up to two drilling rigs being active across both areas by the end of 2011.

Second-quarter production from the Central Louisiana/East Texas area totaled 435 MBoe, representing 16% of the company's total production. The average daily production of the core area was 4,829 net Boe per day. (Note: The Central Louisiana/East Texas area now includes the former South Louisiana area, whose fields are currently being marketed.)

May 5, 2011: PRESS RELEASE; 2011 FIRST QUARTER 10Q. During first quarter 2011, we participated in a non-operated well targeting the Austin Chalk trend in the Brookeland field in East Texas.  This well is currently producing minimal amounts of hydrocarbons. 

In the Burr Ferry field in Central Louisiana, we are making plans to move an operated rig into the area during the second quarter. We also expect our joint venture partner to begin drilling a third well in the area during the summer months. The first two wells drilled by our joint venture partner continue to perform very well.

Production from the Central Louisiana/East Texas core area during first quarter 2011 was 402 MBoe, equaling 15% of the company's total production. (NOTE: As of March 1, 2011, the South Louisiana core area was combined with the Central Louisiana/East Texas core area.)

February 24, 2011: PRESS RELEASE; 2010 FORM 10-K. In the company's Central Louisiana/East Texas core area, a nonoperated well targeting the Austin Chalk was drilled and completed in the South Burr Ferry Field in Vernon Parish, Louisiana, during the fourth quarter. Initial production test rates of this well were 840 Bbls/d and 10.2 MMcf/d of gross production with flowing tubing pressure of 5,700 psi on a 32/64” choke. This is the second well drilled in this area since the formation of a joint venture. Swift Energy has a 50% working interest in this well, but enjoys a 61.5% net revenue interest due to fee mineral rights it owns. Both wells drilled in this area are producing at restricted rates until facilities and infrastructure can be upgraded. Activity in this area will resume during the second quarter of 2011.

In the company's Brookeland Field in East Texas, one operated and one nonoperated well were drilled during the fourth quarter. The Swift-operated Donner Brown A2 well is waiting on facility upgrades before testing can be conducted. The nonoperated Donner Brown 346 RE is being prepared for production.

Production from the Central Louisiana/East Texas core area during 2010 was 738 MBoe, equaling 8.9% of the company's total production.

At year-end 2010, the Central Louisiana/East Texas core area held 15.7% of Swift's proved reserves. The area's reserves totaled 20.9 MMBoe, of which 8.1 MMBoe were developed. The reserves consisted of 63.8% oil and NGLs.

November 10, 2010: PRESS RELEASE. Swift Energy announced a preliminary 2011 capital budget of $430 million to $450 million to cover an accelerated drilling program with a production growth goal of 25% to 30% and a reserves growth goal of 15% to 20%. Approximately 75% to 80% of the capital budget will be spent in our South Texas core area, much of it on drilling oil and condensate development wells on acreage proved up in 2010 in the Eagle Ford shale and Olmos sands. The remainder will be directed towards oil production in our Southeast Louisiana core area and high-rate Austin Chalk oil and natural gas development wells in our Central Louisiana/East Texas core area. This program will be partially funded by proceeds from a public offering of 3 million shares of the company's common stock also announced on November 10.

November 4, 2010: PRESS RELEASE; 2010 THIRD QUARTER 10-Q. During the third quarter of 2010, our joint venture partner Anadarko drilled an exploratory horizontal well in which we have a 50% working interest in the Austin Chalk trend in the Burr Ferry Field of the Central Louisiana/East Texas core area. Gross initial production rates of the well were 13 MMcf per day and 1,000 barrels of oil per day. This well will produce to sales upon completion of a saltwater disposal well. A second well in the field is under way.

The third quarter 2010 production of the Central Louisiana/East Texas core area was 192 net MBoe, or 9.3% of the company-wide third quarter 2010 production of 2.07 MMBoe.

August 5, 2010: PRESS RELEASE; 2010 SECOND QUARTER 10-Q. In second quarter 2010, the Central Louisiana/East Texas core area of operation provided 175 MBoe, or 8.6%, of the company's total second quarter production of 2,028 MBoe. Of the total second quarter oil and gas sales of $105.1 million, the area contributed $9.6 million, or 9.1%.

May 6, 2010: 2010 FIRST QUARTER 10-Q. In first quarter 2010, the Central Louisiana/East Texas core area of operation provided 161 MBoe, or 8%, of the company’s total first quarter production of 2,045 MBoe.

February 25, 2010: 2009 FORM 10-K. At year-end 2009, 20.0 MMBoe, or 17.7%, of the company’s total reserves were in the Central Louisiana/East Tennessee core area. For the year 2009, this area provided 9.5% of the company’s production, with 5.3% coming from South Bearhead Creek. Approximately 64.2% of the proved reserves of 20.0 MMBoe in the Central Louisiana/East Texas area consisted of oil and NGLs, and 10.8 MMBoe, or 54%, of the reserves were undeveloped.

During 2009, we did not drill any wells in the Central Louisiana/East Texas core area. For 2010, we plan to drill one well in the Masters Creek Field. In addition, we are engaged in a joint venture agreement for the development and exploitation in and around the Burr Ferry Field. As fee mineral owner, we leased a 50% working interest in approximately 33,623 gross acres to the joint venture partner. We retain a 50% working interest in the joint venture acreage as well as its fee mineral royalty rights. We received approximately $4.2 million related to this transaction, which we used to pay down a portion of the outstanding balance on our credit facility.

At year-end 2009 we had identified 37 PUDs in the in the Central Louisiana/East Texas core area, 10 in Brookeland, 9 in Masters Creek, and 18 in South Bearhead Creek.

February 18, 2010: WEBCAST. Fourth quarter 2009 production from the Central Louisiana/East Texas core area averaged approximately 1,985 Boe per day, or about 11.9 MMcfe per day.

For additional information, please see the latest Form 10-K and Form 10-Q.