| Jeanerette Field Updates
October 30, 2009. The Jeanerette Field is one of six fields in which we have interests in our South Louisiana core area of operation and one of four fields that we operate in St. Mary Parish. The other three fields in the parish are the Cote Blanche Island Field 12 miles south of Jeanerette and the Bayou Sale Field and Horseshoe Bayou Field located southeast of Jeanerette. We obtained interests in Jeanerette in a 2006 acquisition and at year-end 2008 owned drilling and production rights in 5,207 net acres in the field.
The Jeanerette Field is a shore-based field positioned on the flank of a large salt dome and produces from the Planulina sands at depths of approximately 11,000 feet to 14,000 feet. The field is primarily a natural gas field and largely undeveloped.
2008 Operational Statistics
While the Jeanerette Field did not sustain serious damage to its infrastructure during the two 2008 September hurricanes, Gustav and Ike, it did experience prolonged shut-ins during periods of preparation for and recovery from the hurricanes. Its production for the year was 88.0 MBoe, or 0.9% of the company’s total production. The production consisted of 81.1 MBoe (92%) natural gas and 6.9 MBoe (8%) oil.
At year-end 2008, we had interests in five producing wells in Jeanerette (four operated and one nonoperated), including one development well completed in the field during the year. We entered the year 2009 with six proved undeveloped locations (PUDs) in Jeanerette for future drilling.
At year-end 2008, Jeanerette held 4.9% of the company’s year-end reserves. The reserves totaled 5.7 MMBoe and consisted of 90.7% natural gas and were 84% undeveloped.
Exploration and Development Activities
Drilling Program. We completed one of two 2008 development wells that we drilled in Jeanerette with a 100% working interest. We also participated in an unsuccessful nonoperated development well in the field. The successful well was the Kimbrough #2, which is producing from the SD3 sand over a perforated interval from 11,770 feet to 11,840 feet.
Geoscience Database Upgrade. We remain very much engaged in extracting information from our 1,700-square-mile geoscience database that guides our drilling program in Jeanerette and elsewhere in the South Louisiana core area. We have recently (in 2009) completed a lengthy three-dimensional prestack depth migration analysis of the entire database with updated salt models. These depth migration analyses have significantly improved and refined our understanding of the complex traps associated with salt bodies and, combined with seismic pore pressure predictions, have increased our confidence in drilling to deeper targets.
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. At year-end 2009, 5.2 MMBoe, or 4.6%, of the company’s total reserves were in the Jeanerette Field. For the year 2009, Jeanerette provided 0.9% of the company’s production. Approximately 7.8% of the proved reserves of 5.2 MMBoe in the Jeanerette Field consisted of oil and NGLs, and 4.1 MMBoe, or 79%, were undeveloped.
During 2009, we did not drill any wells in the Jeanerette Field and have no plans for drilling in the area in 2010. At year-end 2009 we had identified a total of 47 PUDs in the Jeanerette, Bayou Sale, and Horseshoe Bayou fields combined.
For additional information, please see the latest Form 10-K and Form 10-Q.
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