Swift Energy Announces $30.5 Million Acquisition

Apr 02, 2001, 01:00 ET from Swift Energy Company

    HOUSTON, April 2 /PRNewswire/ -- Swift Energy Company (NYSE:   SFY; PCX)
 reported today that it had purchased interests in Lake Washington Field in
 Plaquemines Parish, Louisiana for $30.5 million in cash from Elysium Energy,
 LLC effective March 1, 2001. Estimates prepared by the Company and audited by
 H. J. Gruy & Associates of the proved reserves of the purchased property total
 7.1 million barrels of oil and 3.7 billion cubic feet of gas or 7.7 million
 barrels of oil equivalent ("BOE"). Current production is approximately
 1,000 BOE per day net to these purchased interests.
     Lake Washington Field produces oil from multiple Miocene sands ranging in
 depth from less than 2,000 feet to greater than 10,000 feet. The field,
 discovered in the 1930s and operated primarily by major oil companies, is
 located on a salt dome feature and has produced over 300 million BOE. Oil and
 gas from approximately 20 producing wells is gathered from four platforms
 located in water depths ranging from six to 30 feet with drilling and workover
 operations performed with barge rigs. Complex faulting, associated with the
 salt dome feature, has created a large number of oil and gas reservoirs. Only
 about 15% of the total structure has been fully evaluated, and with the
 acquisition of 3-D seismic data, numerous, under-exploited fault blocks have
 been identified. Recently, seven wells have been drilled and successfully
 completed based on recent detailed geologic and geophysical mapping. Some of
 these wells contain stacked pays with hundreds of feet of total thickness. In
 addition to the significant development opportunities, there are numerous
 future exploration opportunities.
     Approximately 98% of the value of this acquisition is allocated to the
 Elysium-operated portion comprised of three leases with net revenue interests
 over 80%. The remaining 2% of the value is attributable to minor interests in
 36 offsetting wells operated by Phillips Petroleum and Hunt Petroleum.
 Approximately 26% of the estimated proved reserve volumes are proved developed
 producing reserves with the remaining classified as proved behind pipe and
 proved undeveloped. Future development costs for these non-producing reserves
 are currently estimated to be less than $6.00 per barrel. Historical initial
 completion rates vary from 50 to 300 barrels of oil per day with decline rates
 typically less than 10% per year. In addition to the proved reserves, the
 Company has identified four distinct exploration plays on the property, which
 represent a significant potential exploratory resource base.
     The Company plans to immediately initiate a three-year exploitation
 program to drill proved undeveloped locations, reactivate wells and reduce
 operating costs. The 2001 capital expenditures currently budgeted for these
 activities are estimated to be $5.4 million. This exploitation program is
 expected to significantly increase the production of these purchased interests
 by year-end 2001, and this work is expected to continue in 2002 and 2003. In
 addition to these development activities, the Company plans to further
 evaluate additional locations with estimated gross reserve potential totaling
 12 million barrels that are classified as probable or possible. Based on
 future geologic and engineering information, several of these locations may be
 drilled over the next 18 months. Typical dry-hole costs for these tests
 currently are estimated to be less that $1 million per well for depths up to
 10,000 feet.
     Terry Swift, President of Swift Energy Company, noted, "This acquisition
 of interests in the Lake Washington Field provides Swift with a "target-rich"
 opportunity where we can use our expertise and capital to further enhance the
 field's value and build another core area for the Company. We look forward to
 beginning work on this project."
     Swift Energy Company is an independent oil and gas company engaged in the
 exploration, development, acquisition, and operation of oil and gas
 properties, with a focus on U.S. onshore natural gas reserves as well as
 onshore oil and natural gas reserves in New Zealand. Founded in 1979 with
 headquarters in Houston, Texas, the Company has achieved outstanding growth
 rates in proved oil and gas reserves, production, and cash flow over the last
 five years through a disciplined program of acquisitions and drilling, while
 maintaining a strong financial position.
     In its filings with the Securities and Exchange Commission, Swift is
 permitted to disclose only proved reserves that the Company has demonstrated
 by actual production or conclusive formation tests to be economically and
 legally producible under existing economic and operating conditions. Swift
 uses certain terms in this press release, such as "probable", "possible" or
 "potential" in relation to reserves that the SEC's guidelines strictly
 prohibit it from including in filings with the SEC. This press release also
 includes "forward-looking statements" within the meaning of applicable
 securities laws and regulations. The opinions, forecasts, projections or other
 statements other than statements of historical fact, are forward-looking
 statements. Swift believes that the expectations reflected in these
 forward-looking statements are reasonable, but it cannot give any assurance
 that these expectations will prove to be correct. Investors are urged to
 closely consider Swift's disclosure of its proved reserves, along with certain
 risks and uncertainties inherent in the Company's business, set forth in
 Swift's filings with the SEC.
 
 

SOURCE Swift Energy Company
    HOUSTON, April 2 /PRNewswire/ -- Swift Energy Company (NYSE:   SFY; PCX)
 reported today that it had purchased interests in Lake Washington Field in
 Plaquemines Parish, Louisiana for $30.5 million in cash from Elysium Energy,
 LLC effective March 1, 2001. Estimates prepared by the Company and audited by
 H. J. Gruy & Associates of the proved reserves of the purchased property total
 7.1 million barrels of oil and 3.7 billion cubic feet of gas or 7.7 million
 barrels of oil equivalent ("BOE"). Current production is approximately
 1,000 BOE per day net to these purchased interests.
     Lake Washington Field produces oil from multiple Miocene sands ranging in
 depth from less than 2,000 feet to greater than 10,000 feet. The field,
 discovered in the 1930s and operated primarily by major oil companies, is
 located on a salt dome feature and has produced over 300 million BOE. Oil and
 gas from approximately 20 producing wells is gathered from four platforms
 located in water depths ranging from six to 30 feet with drilling and workover
 operations performed with barge rigs. Complex faulting, associated with the
 salt dome feature, has created a large number of oil and gas reservoirs. Only
 about 15% of the total structure has been fully evaluated, and with the
 acquisition of 3-D seismic data, numerous, under-exploited fault blocks have
 been identified. Recently, seven wells have been drilled and successfully
 completed based on recent detailed geologic and geophysical mapping. Some of
 these wells contain stacked pays with hundreds of feet of total thickness. In
 addition to the significant development opportunities, there are numerous
 future exploration opportunities.
     Approximately 98% of the value of this acquisition is allocated to the
 Elysium-operated portion comprised of three leases with net revenue interests
 over 80%. The remaining 2% of the value is attributable to minor interests in
 36 offsetting wells operated by Phillips Petroleum and Hunt Petroleum.
 Approximately 26% of the estimated proved reserve volumes are proved developed
 producing reserves with the remaining classified as proved behind pipe and
 proved undeveloped. Future development costs for these non-producing reserves
 are currently estimated to be less than $6.00 per barrel. Historical initial
 completion rates vary from 50 to 300 barrels of oil per day with decline rates
 typically less than 10% per year. In addition to the proved reserves, the
 Company has identified four distinct exploration plays on the property, which
 represent a significant potential exploratory resource base.
     The Company plans to immediately initiate a three-year exploitation
 program to drill proved undeveloped locations, reactivate wells and reduce
 operating costs. The 2001 capital expenditures currently budgeted for these
 activities are estimated to be $5.4 million. This exploitation program is
 expected to significantly increase the production of these purchased interests
 by year-end 2001, and this work is expected to continue in 2002 and 2003. In
 addition to these development activities, the Company plans to further
 evaluate additional locations with estimated gross reserve potential totaling
 12 million barrels that are classified as probable or possible. Based on
 future geologic and engineering information, several of these locations may be
 drilled over the next 18 months. Typical dry-hole costs for these tests
 currently are estimated to be less that $1 million per well for depths up to
 10,000 feet.
     Terry Swift, President of Swift Energy Company, noted, "This acquisition
 of interests in the Lake Washington Field provides Swift with a "target-rich"
 opportunity where we can use our expertise and capital to further enhance the
 field's value and build another core area for the Company. We look forward to
 beginning work on this project."
     Swift Energy Company is an independent oil and gas company engaged in the
 exploration, development, acquisition, and operation of oil and gas
 properties, with a focus on U.S. onshore natural gas reserves as well as
 onshore oil and natural gas reserves in New Zealand. Founded in 1979 with
 headquarters in Houston, Texas, the Company has achieved outstanding growth
 rates in proved oil and gas reserves, production, and cash flow over the last
 five years through a disciplined program of acquisitions and drilling, while
 maintaining a strong financial position.
     In its filings with the Securities and Exchange Commission, Swift is
 permitted to disclose only proved reserves that the Company has demonstrated
 by actual production or conclusive formation tests to be economically and
 legally producible under existing economic and operating conditions. Swift
 uses certain terms in this press release, such as "probable", "possible" or
 "potential" in relation to reserves that the SEC's guidelines strictly
 prohibit it from including in filings with the SEC. This press release also
 includes "forward-looking statements" within the meaning of applicable
 securities laws and regulations. The opinions, forecasts, projections or other
 statements other than statements of historical fact, are forward-looking
 statements. Swift believes that the expectations reflected in these
 forward-looking statements are reasonable, but it cannot give any assurance
 that these expectations will prove to be correct. Investors are urged to
 closely consider Swift's disclosure of its proved reserves, along with certain
 risks and uncertainties inherent in the Company's business, set forth in
 Swift's filings with the SEC.
 
 SOURCE  Swift Energy Company