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Gold/Mining/Energy : Swift Energy (SFY) -- Ignore unavailable to you. Want to Upgrade?

To: PuddleGlum who wrote (1429)	4/2/2001 7:25:31 AM
From: Robert T. Quasius	Read Replies (1) \| Respond to of 1602

New acquisition in LA announced today: Swift Energy Announces $30.5 Million Acquisition 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