October 30, 2009. The Southeast Louisiana core area of operation is Swift Energy’s largest producing area and covers four of the state’s parishes: Plaquemines, Jefferson, Lafourche, and St. Charles (see map). In this area, we operate properties in two significant producing fields, the Lake Washington Field in Plaquemines Parish and the Bay de Chene Field located along the border of Jefferson Parish and Lafourche Parish. Principally because of this area, we are one of the largest crude oil producers in the state of Louisiana.

This area provided 53.0% of our total 2008 company production, including 66% of our total liquids production, with sales of 5.3 MMBoe for $486.4 million. Production from this core area was adversely affected by the season’s hurricanes, particularly Hurricane Gustav. We estimate that the company had 0.8 MMBoe of production shut in owing to Hurricane Gustav on September 1 and Hurricane Ike on September 13, most of it in the Southeast Louisiana area.

At year-end 2008, the Southeast Louisiana area held 33.4% (38.9 MMBoe) of the company’s oil and gas reserves. The reserves consisted of 81.9% oil and natural gas liquids and were 54% developed.

Click here for interactive map of all Swift properties.

We began operations in the Southeast Louisiana area in 2001. Both of the area's fields—Lake Washington and Bay de Chene—are in inland waters, with each producing from multiple stacked Miocene sands surrounding a submerged salt dome. After initially drilling to relatively shallow depths in these fields, we began drilling to deeper horizons at locations determined from analyses of our first proprietary geoscience database, which covers the two fields and surrounding areas.

During 2008 we successfully completed 28 of 28 development wells and one of one exploratory well drilled in the area for a success rate of 100%.

We drilled the exploratory well (the Shasta prospect, SL 18669#1) in Plaquemines Parish between the two fields, retaining a 50% working interest. The well reached a total measured depth of 18,855 feet and found pay in the Miocene sand. We completed the well late in the year and tested it at a rate of 11 MMcf of natural gas and 739 barrels of oil per day (at 11,279 psi on a 14/64-inch choke). It was placed on production on April 26, 2009, after an 8-mile-long pipeline was constructed from the well to Lake Washington’s newest production facility (the Westside facility). During July 2009, the gross daily production of the well averaged 4.6 MMcf of gas and 331 barrels of oil with a flowing tube pressure of 9,600 psi.

Future drilling in the Southeast Louisiana area will continue at additional sites identified by our further refinement and analyses of the area’s geoscience database. At year-end 2008, we had already identified over 100 development well locations in this area for drilling depths between 3,000 feet and 13,000 feet. However, except for completing a 2008 Lake Washington well in first quarter 2009, no drilling activity occurred in the Southeast Louisiana core area during the first half of 2009 because of the company’s decision to release all drilling rigs until commodity pricing improved.

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. In our Southeast Louisiana area we drilled and completed two wells in the Miocene sands in first-quarter 2012, both in the Lake Washington field in Plaquemines Parish. The first well, the CM 419, had impaired production for mechanical reasons and will undergo a workover in the second quarter. The second well, the CM 421, was placed on production. Both wells opened up additional drilling opportunity on the west side of the field’s salt dome.

A third well, the CM 422, has been drilled and completed during the second quarter.  This well, located in the Northeast portion of the field, sets up additional drilling inventory in this portion of the field.

We currently have one operated barge rig drilling in our Southeast Louisiana area. In addition, the on-going recompletion and production optimization program continues.

February 23, 2012: PRESS RELEASE. During the fourth quarter of 2011, we continued our ongoing recompletion and production optimization program in the Lake Washington field. The average initial production response of ten recompletions that were performed was approximately 171 gross Boe/d per well. The six production optimization projects that were carried out averaged an initial production response of approximately 99 gross Boe/d per well.

Late in the fourth quarter, a drilling rig was moved into the field. This rig will remain active for most of 2012, drilling 5 to 10 wells. The first well in this program, the CM 419, was drilled early in first quarter 2012 to a measured depth of 8,489 feet and encountered 87 feet of true vertical pay. This well will be tested following the completion of a flow line installation. A second well, the CM 421, is currently being drilled and has encountered approximately 227 feet of true vertical pay through its current depth. This well will continue drilling to its depth objective and be completed during the first quarter.

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 Southeast Louisiana core area, recompletion and production optimization work continued during the third quarter in the Lake Washington field. The work included six recompletions, one gas lift modification, one well returned to production, and eight sliding sleeve changes. The combined average initial production response from these operations was approximately 5,000 Boe per day. As a result of these low-cost operations and the impact of two new wells placed on line during the second quarter, Lake Washington’s third-quarter production remained flat compared to its second-quarter production. We will continue to focus on relatively low-risk, low-cost oil activity in this area and also plan to re-commence drilling in the Lake Washington field in the fourth quarter of 2011 and during 2012.

Our production in the Southeast Louisiana area during the third quarter was 783 MBoe, as compared to 934 MBoe in the third quarter of 2010.

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 FORM 10Q; 2011 SECOND QUARTER WEBCAST. During the second quarter of 2011, our Southeast Louisiana drilling and completion activities all occurred in the Lake Washington field. They consisted of the drilling and completion of the CM-420 development well, the completion of the first-quarter LL&E #5 extension well, and a continuation of well recompletion and production optimization activities.

We drilled and completed the CM-420 (“Hershey”) development well during the second quarter on the west side of the Lake Washington field. It reached a measured depth of 9,882 feet and encountered 150 feet of true vertical net pay in five productive horizons.  The initial production rate of this well was 399 barrels of oil per day and 0.12 MMcf of natural gas per day with a flowing tubing pressure of 230 psi on a 40/64-inch choke setting.

We drilled the LL&E #5 extension well during the first quarter in the Jelly Bowl area in the southern portion of the Lake Washington field and completed it in the second quarter. Previously identified as the SL-1464 #8 well (see May 5, 2011, press release),  the LL&E #5 had an initial production rate of 2,294 barrels of oil per day and 1.2 MMcf of natural gas per day with a flowing tubing pressure of 1,080 psi on a 26/64-inch choke setting.  The most recent test rate of this well was 799 barrels of oil per day and 2.4 MMcf of natural gas per day with a flowing tubing pressure of 1,020 psi on a 32/64-inch choke setting.

Both of these wells have opened up areas where we expect to drill additional wells over the next several years.

Also during the second quarter we recompleted four wells in the Lake Washington field that yielded an average initial production response of 280 gross Boe per day.

In addition, we performed 24 production optimization projects that included sliding sleeve changes, gas lift enhancements and returning shut-in wells to production. These projects had an average initial production response of 126 gross Boe per day.

Second-quarter production from the Southeast Louisiana area (the Lake Washington field and the Bay de Chene field combined) totaled 821 MBoe, representing 31% of the company’s total production. The average daily production of the core area was 9,117 net Boe per day, with the Lake Washington field contributing an average of 7,845 net Boe per day and the Bay de Chene field contributing an average of 1,172 Boe per day.

July 25, 2011: PRESS RELEASE. In the Lake Washington field in Plaquemines Parish, Louisiana, we completed the LL&E #5 (Jelly Bowl) well. The initial production rate of this well was 2,294 barrels of oil per day and 1.2 MMcf of natural gas per day with flowing tubing pressure of 1,080 psi on a 26/64-inch choke setting. The most recent test rate of this well was 799 barrels of oil per day and 2.4 MMcf of gas per day with flowing tubing pressure of 1,020 psi on a 32/64-inch choke setting.

A second well located on the west side of the Lake Washington field, the CM #420, was recently drilled to a measured depth of 9,882 feet and encountered 93 feet of true vertical net pay in three productive horizons. The initial production rate of this well was 399 barrels of oil per day of oil and 0.12 MMcf of natural gas per day with flowing tubing pressure of 230 psi on a 40/64-inch choke setting.

May 5, 2011: PRESS RELEASE; 2011 FIRST QUARTER 10-Q; 2011 FIRST QUARTER WEBCAST. During first quarter 2011 we drilled the SL 1464 #8 (Jelly Bowl prospect) in the Lake Washington field to a measured depth of 11,846 feet and encountered 93 feet of true vertical net pay in four productive horizons. This well has been completed and will be connected to production facilities shortly.

We also performed five recompletions in the Lake Washington field with an average initial production response of approximately 480 gross Boe per day. In addition, we carried out 14 optimization projects (sliding sleeve changes, gas lift enhancements, and returning shut-in wells to production) that averaged an initial production response of approximately 224 gross Boe per day. With no new wells brought on line during the quarter, these low-cost operations alone led to a 4% increase in the field's daily net production rate from the previous quarter.

The average daily production of the Southeast Louisiana core area, which includes the Bay de Chene field, was 9,661 net Boe, or about 68 billion cfe, approximately the same as in fourth quarter 2010. Total production from the core area during first quarter 2011 was 870 MBoe, equaling 33% of the company's total production.

February 24, 2011: PRESS RELEASE; 2010 FORM 10-K. In the Southeast Louisiana core area, the company completed one of three wells drilled in the Lake Washington Field during the fourth quarter. Three recompletions were performed during the quarter, resulting in an average production increase of 183 gross barrels of oil equivalent per day per recompletion. In addition, 12 field optimization projects were carried out in Lake Washington, resulting in an average production increase of 75 barrels of oil equivalent per day per project. Gas lift and amine unit infrastructure upgrades were also completed in the field. These types of projects are important to ensure that facilities at the field level will not be constrained as the company increases development activity and begins a deep exploitation and exploration program.

One drilling rig and one recompletion rig are currently active in Lake Washington.

Production from the Southeast Louisiana core area during 2010 was 3,706 MBoe, equaling 44.5% of the company's total production.

At year-end the Southeast Louisiana core area held 15.9% of Swift's proved reserves—a total of 21.2 MMBoe (11.3 MMBoe developed). The reserves consisted of 84.6% oil and NGLs.

November 4, 2010: PRESS RELEASE; 2010 THIRD QUARTER 10-Q. In third quarter 2010 activities in the Southeast Louisiana core area, we completed three of four development wells drilled in the Lake Washington Field as part of our one-rig shallow drilling program to enhance the field’s production.

The CM 413 was drilled to a measured depth of 2,922 feet and encountered 48 feet of true vertical net pay. This well has averaged approximately 270 gross barrels of oil per day over a period of 30 days.

The SL 17266 #25 was drilled to a measured depth of 5,037 feet and encountered 246 feet of true vertical net pay. It has averaged approximately 100 gross barrels of oil per day over a period of 30 days.

The CM 414 was drilled to a measured depth of 1,622 feet and encountered 90 feet of true vertical pay. This well was recently completed and will be tested following a facility upgrade.

In our second on-going production enhancement program in the Lake Washington Field, we executed six sliding sleeve changes that resulted in an average production increase of 277 gross Boe per day per operation.

The Southeast Louisiana contribution to our third quarter 2010 production was 934 net MBoe, or 45.1% of our company-wide production of 2.07 MMBoe.

August 5, 2010: PRESS RELEASE; 2010 SECOND QUARTER 10-Q.  During second quarter 2010, we continued our two production enhancement programs in the Lake Washington Field.

In our one-rig shallow well drilling program we successfully drilled three development wells: the CM 411 to a measured depth of 5,481 feet, the SL 212 #178 to a measured depth of 7,200 feet, and the CM 412 to a measured depth of 8,178 feet.

In our second production enhancement program, we recompleted  seven wells with average initial production rates of approximately 244 gross Boe per day, performed four sliding sleeve changes that yielded an average production increase of 324 barrels of oil per day per well, and carried out one gas lift redesign that increased the well’s performance from 98 to 315 barrels of oil per day.

In second quarter 2010, the Southeast Louisiana core area of operation provided 944 MBoe, or 46.5%%, of the company’s total production of 2,028 MBoe. Of the total second quarter oil and gas sales of $105.1 million, the area contributed $61.8, or 58.8%.

May 6, 2010: PRESS RELEASE; 2010 FIRST QUARTER 10-Q. A group of three development wells were drilled during first quarter 2010 in the Lake Washington Field as part of a shallow drilling program initiated in third quarter 2009. Of these, one well, the CM #410, was completed. A fourth shallow Lake Washington development well encountered commercial quantities of hydrocarbons but was plugged because of mechanical failure. It was re-drilled early in the second quarter (in April) as the CM #411 well and placed on production early in the second quarter.

Also during first quarter 2010, seven Lake Washington wells were recompleted, one gas lift modification and six sliding sleeve changes. We plan to perform six additional recompletions during the current year.

The company’s preventative maintenance program identified a small leak at the bulk separator for Lake Washington’s 6700 production processing facility that was repaired over a 10-day period. Also, a new amine treating system is being installed at the CM3/Caseload facility which will double the treating capacity to 36 MMcf/day of gas.

In first quarter 2010, the Southeast Louisiana core area of operations provided 936 MBoe, or 46% of the company’s total first quarter production of 2,045 MBoe.

February 25, 2010: 2009 FORM 10-K. At year-end 2009, 31.3 MMBoe, or 27.7%, of the company’s total reserves were in the Southeast Louisiana core area. For the year 2009, Southeast Louisiana provided 4,782 MBoe, or 52.8%, of the company’s production, with 39.7% coming from the Lake Washington Field. Approximately 86.1% of the proved reserves of 31.3 MMBoe in Southeast Louisiana consisted of oil and NGLs, and 16.0 MMBoe, or 51%, of the reserves were undeveloped.

During 2009, we drilled and completed four out of five shallow development wells and one out of two exploratory wells in Lake Washington. We also carried out a production optimization program in Lake Washington involving gas lift enhancements and sliding sleeve shifts to more productive zones to assist in mitigation of natural field declines. In 2009 we completed nine gas lift modifications, 29 sliding sleeve changes, and three acid jobs in this program. Lake Washington has approximately 107 currently producing wells.

No wells were drilled in the Bay de Chene Field during the year. Following heavy damage to the field’s infrastructure by Hurricane Gustav in 2008, production from the field was limited to high-pressure gas until repairs to the infrastructure and the installation of new facilities were completed in the third quarter of 2009.

Our planned 2010 capital expenditures include drilling 10 to 15 wells in Lake Washington and two to five wells in Bay de Chene. We also plan to perform recompletions on up to 10 wells in Lake Washington.  At year-end, we had identified 96 PUDs in Lake Washington and three PUDs in Bay de Chene.

February 18, 2010: PRESS RELEASE; WEBCAST. Fourth quarter 2009 production from the Southeast Louisiana core area averaged approximately 13,019 Boe per day, or about 78 MMcfe per day. This is a decrease of 2% when compared to the area’s third quarter 2009 production rate, primarily due to a slower pace of production activity and delays from freezing temperatures and natural declines. Lake Washington averaged approximately 9,645 net Boe per day (a decrease of 4% compared to the field’s third quarter 2009 production), and Bay de Chene averaged 3,374 net Boe per day (an increase of 2% due to the restoration during the third quarter of liquids production from the field after a long shut-in period). Freezing problems due to unusually cold temperatures and unplanned equipment repairs will have a slightly negative impact on our first quarter 2010 production rates from this area.

We completed four of five wells drilled in the Southeast Louisiana area during fourth quarter 2009, all in the Lake Washington Field. The four completed wells were drilled to measured depths ranging from 6,023 feet to 7,240 feet and their average initial production rate was approximately 350 gross Boe/d.

In the fourth quarter 2009, we also continued our Lake Washington production optimization program on 11 wells involving gas lift enhancements, acid stimulations, and sliding sleeve shifts to change productive zones to assist in mitigating natural field declines. In addition, we performed recompletions on two wells. Average initial production from these operations was approximately 250 gross Boe/d.

Also in the Southeast Louisiana area, we began making preparations to spud a well in the Bay de Chene Field late in the first quarter or early in the second quarter of this year. Initial drilling will focus on oil development opportunities at depths between 11,000 and 12,000 feet.

We plan to keep at least one rig operating in the Southeast Louisiana area during 2010.

November 3, 2009: PRESS RELEASE. During the third quarter we began a shallow drilling program in the Lake Washington Field, located in Plaquemines Parish, Louisiana. The CM 400 was drilled to a measured depth of 6,023 feet and encountered 31 feet of true vertical net pay. The CM 403 was drilled to a measured depth of 5,365 feet and encountered an estimated 52 feet of true vertical net pay. Both wells concluded drilling operations during the fourth quarter and are now being connected to production facilities. This one-rig program will remain active during the fourth quarter.

Also in the third quarter, we continued our production optimization program in the Lake Washington Field with gas lift enhancements and/or sliding sleeve shifts on four wells and recompletions on five wells.

In the Bay de Chene Field all facilities were brought on line on August 28 following new construction and upgrades necessitated by damages caused by Hurricane Gustav. Initial crude oil production averaged approximately 2,590 gross Bbls/d along with natural gas production of 20.4 MMcf/d over the first seven days after the startup of these facilities, which was higher than expected. Field-wide production over the last seven days has averaged approximately 1,100 gross BBls/d of oil and 17.1 MMcf/d of natural gas. No wells have been drilled in Bay de Chene in 2009 nor are any wells planned to be drilled there until 2010.

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