| Las Tiendas (Fasken) Field & Other South Texas Properties Updates
October 30, 2009. In addition to the AWP Field, the Briscoe Ranch Field, and the Sun TSH Field, our South Texas core area of operation includes the small Las Tiendas Field in Webb County (also known as Fasken Field) plus several other properties, both operated and nonoperated, that are located outside the boundaries of the named fields. Among the latter are several wells in the Bego Field in Goliad County.
Our purchase of the Las Tiendas Field was part of an 82,000-acre acquisition for approximately $248 million in 2007 that also included Briscoe Ranch and Sun TSH in contiguous counties. With the purchase of additional interests in Briscoe Ranch, this acquisition was expanded in 2008 to approximately 88,700 net acres, of which 8,622 net acres were in Las Tiendas.
Our acquisition of interests in these three fields illustrates our strategy of adding properties near existing operated fields where we have expertise in analyzing reservoirs and tailoring advanced technologies to the formation. Our company has two decades of experience in the South Texas area in producing efficiently from the tight Olmos sand, which is the formation that the Las Tiendas Field targets at depths of 6,000 to 6,800 feet. As of July 31, 2009, we also had 9,000 net undeveloped acres in the Eagle Ford shale in the field.
The Olmos sand is a depletion-driven reservoir with low porosity and low permeability that requires the application of various technologies in order for oil and natural gas to flow to the well bore. The technologies that we have honed in the South Texas area include hydraulic fracturing, in which the tight sand around the bore hole is cracked to provide pathways for the oil and gas; two-dimensional and three-dimensional seismic imaging of the subsurface formation; and installation of coiled-tubing velocity strings to enhance production. Most recently, we combined horizontal drilling technology with multi-stage hydraulic fracturing in the Olmos sand of the nearby AWP Field.
First discovered in 1974, the Las Tiendas Field was named after a nearby ranching community of the same name (Las Tiendas means “the shops” in Spanish). The location is also known as the Fasken prospect, named after a Canadian attorney, David Fasken, Sr., who established a ranch in the area in the early 1900s.
At year-end 2008, the Las Tiendas Field and the area’s non-field-affiliated properties had a total of 45 producing wells, of which 39 were operated by Swift. Together, these properties produced 163.0 MBoe of natural gas, 10.6 MBoe of natural gas liquids (NGLs), and 4.0 MBoe of oil, contributing 1.8% of the company’s total 2008 production. At year-end 2008, these fields held 0.6 MMBoe in proved reserves, accounting for 0.6% of the company’s total reserves. These reserves were 87.8% natural gas and were 83.3% developed.
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 drilled two operated wells to the Eagle Ford in the Fasken field in Webb County.
We also completed three operated Eagle Ford wells in the field, including two wells drilled in fourth-quarter 2011.
Initial Production Test Rates of Horizontal Wells
Completed in Fasken Field First Quarter 2012
(Operated and 100% Working Interest, unless otherwise noted)
Well Name |
County/Target |
Oil
(Bbls/d) |
|
Natural Gas Liquids
(Bbls/d) |
Residual Natural Gas
(MMcf/d) |
|
Choke Setting |
|
Pressure
(psi) |
Fasken B EF 8H |
Webb/EF |
-- |
|
-- |
7.6 |
|
20/64” |
|
4,085 |
Fasken B EF 1H |
Webb/EF |
-- |
|
-- |
7.1 |
|
18/64” |
|
5,082 |
Fasken B EF 3H |
Webb/EF |
-- |
|
-- |
12.9 |
|
20/64” |
|
5,236 |
| |
|
|
|
|
|
|
|
|
|
February 23, 2012: PRESS RELEASE. During the fourth quarter of 2011, two operated Eagle Ford wells were completed in the Fasken field in Webb County.
Initial Production Test Rates of Fasken Horizontal Wells
Completed in Fourth Quarter 2011
Well Name |
County/Target |
Oil
(Bbl/d) |
|
Natural Gas Liquids
(Bbl/d) |
|
Residual Natural Gas
(MMcf/d) |
|
Choke Setting |
|
Pressure
(psi) |
| |
|
|
|
|
|
|
|
|
|
|
Fasken B EF 6H |
Webb/EF |
-- |
|
-- |
|
5.3 |
|
20/64” |
|
3,360 |
Fasken B EF 7H |
Webb/EF |
-- |
|
-- |
|
7.6 |
|
18/64” |
|
4,057 |
To date in the first quarter 2012, two operated Eagle Ford wells have been completed in the Fasken field.
Initial Production Test Rates of Fasken Horizontal Wells
Completed to Date in First Quarter 2012
Well Name |
County/Target |
Oil
(Bbl/d) |
|
Natural Gas Liquids
(Bbl/d) |
|
Residual Natural Gas
(MMcf/d) |
|
Choke Setting |
|
Pressure
(psi) |
| |
|
|
|
|
|
|
|
|
|
|
Fasken B EF 8H |
Webb/EF |
-- |
|
-- |
|
7.6 |
|
20/64” |
|
4,085 |
Fasken B EF 1H |
Webb/EF |
-- |
|
-- |
|
7.1 |
|
20/64” |
|
5,082 |
November 3, 2011: PRESS RELEASE. In our Fasken field during the third quarter of 2011, we drilled three operated horizontal development wells.
Also in our Fasken field, we completed two operated Eagle Ford wells.
Initial Production Test Rates of South Texas Horizontal Wells
Completed in Fasken Field in Third Quarter 2011
Well Name |
County/
Formation
Target |
Oil
(Bbl/d) |
|
Natural Gas
(MMcf/d) |
|
Natural Gas Liquids
(Bbl/d) |
|
Choke Setting |
|
Pressure
(psi) |
| |
|
|
|
|
|
|
|
|
|
|
Fasken B EF 2H |
Webb – Eagle Ford |
-- |
|
10.4 |
|
-- |
|
20/64” |
|
5,294 |
| |
|
|
|
|
|
|
|
|
|
|
Fasken B EF 5H |
Webb – Eagle Ford |
-- |
|
8.3 |
|
-- |
|
20/64” |
|
4,210 |
During the first week of November, we resumed production and sales of natural gas from the Eagle Ford shale in the Fasken field in Webb County, TX. This production had been shut in as a result of a third-party pipeline failure, which was announced on September 29. Intermittent production curtailments are expected in this area as work necessary to ensure the integrity of the system is performed by the operator.
September 29, 2011: PRESS RELEASE. Failure of a third party operated gathering line earlier this week halted natural gas sales from our Fasken field in Webb County, TX. Gross natural gas sales volumes in the Fasken field were averaging approximately 40 million gross cubic feet per day before the failure occurred, and continued well productivity above initial expectations in this area led us to recently raise our expected well recovery estimates to 10 billion cubic feet per well. While we expect pipeline services to resume in the near future, the estimation of a service restoration date requires that the pipeline operator complete a full review of the damages and determine a specific repair timeline. The impact on our fourth-quarter production caused by the pipeline service outage cannot be fully determined at this time.
May 5, 2011: PRESS RELEASE. We completed two operated horizontal wells in the Eagle Ford shale in the Fasken field in Webb County during first quarter 2011. Both wells had been drilled in fourth quarter 2010. The first well, the Fasken EF 4H, had an initial production rate of 9.3 MMcf of natural gas per day with flowing casing pressure of 4,610 psi on a 20/64-inch choke after a 12-stage fracture stimulation was performed. The second well, the Fasken EF 5H, had an initial production rate of 10.7 MMcf with flowing casing pressure of 4,600 psi on a 13/64-inch choke after a 13-stage fracture stimulation. Both of these wells have performed above expectations.
The Fasken field is a highly productive field that we intend to develop more extensively in a more favorable natural gas pricing environment.
February 24, 2011: PRESS RELEASE. During the fourth quarter, four operated horizontal development wells were drilled to the Eagle Ford shale in Webb County.
September 23, 2010: PRESS RELEASE. Swift Energy has entered into a long-term agreement for natural gas gathering and treating services in South Texas with Meritage Midstream Services’ subsidiary, Eagle Ford Escondido Gathering. This agreement will involve the construction of a new pipeline to our Fasken operating area (Las Tiendas Field) in Webb County, TX. We will have up to 40 million cubic feet of gas per day of firm capacity on this new pipeline, which is expected to be completed by December 1, 2010.
We have also agreed to a long-term sales contract with Kinder Morgan Texas Pipeline LLC that is indexed to market and will be delivered to a new connection with the Kinder Morgan system.
In addition, we have extended contracts for two horizontal rigs currently drilling for us by 12 and 15 months from their current terms due to expire in December 31, 2010. With these contracts in place, we will enter 2011 with three South Texas horizontal drilling rigs under long term contracts.
As stated by Swift's CEO Terry Swift, “These separate agreements for dedicated gathering and drilling services further reduce Swift Energy’s exposure to the continuing tightness of oilfield services and gathering outlets facing operators in South Texas. We expect an increase in operating activity in 2011 and have taken numerous steps to ensure that we can drill, complete and produce our wells without interruption due to third party service constraints.”
May 6, 2010: PRESS RELEASE; 2010 FIRST QUARTER 10-Q. Our horizontal drilling program in the South Texas Eagle Ford shale begun in fourth quarter 2009 is continuing in several locations, primarily in the AWP Field in McMullen County but also in the Las Tiendas Field in Webb County. In total, our Eagle Ford shale position encompasses 97,670 gross and 79,164 net acres, some of which exist below prospective Olmos acreage that we also hold.
In our February 18 update we noted that the company had finished drilling two horizontal discovery wells in the Eagle Ford shale early in first quarter 2010, both with 100% working interests. These wells were later completed during the first quarter. They are the Fasken EF 1H in the Las Tiendas Field and the PCQ 1H in the AWP Field (see AWP update).
The Fasken EF 1H, Swift’s first Eagle Ford shale discovery well, had an initial production rate of 9.4 MMcf/day of gas with flowing casing pressure of 4,550 psi on a 22/64-inch choke. It is currently producing at a curtailed rate of 1 MMcf/day of gas owing to sales line limitations.
February 25, 2010: 2009 FORM 10-K. In Las Tiendas and two other South Texas fields (Sun TSH and Briscoe Ranch), 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.
February 18, 2010: PRESS RELEASE; WEBCAST. As part of an evaluation through the drill bit of our sizable acreage position in South Texas that is prospective for Eagle Ford shale development, we began drilling two horizontal wells in the Eagle Ford shale with a 100% working interest during the fourth quarter of 2009—one in the Las Tiendas Field in Webb County and another in the AWP Field in McMullen County. These wells have now concluded drilling operations and are scheduled for completion operations in March. Vertical pilot holes were drilled to obtain cores from both these wells as part of their initial evaluation program.
For additional information, please see the latest Form 10-K and Form 10-Q.
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