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

To: Robert T. Quasius who wrote (746)	3/30/1999 2:30:00 PM
From: Mark	Read Replies (1) \| Respond to of 1602

Yup, it seems that there could be an NG shortage coming, probably starting next year. But SFY are going to be in this same boat. I trust we have all read the 10-k and spotted the tell-tale paragraph/sentence - "Revenues from oil and gas sales comprised 97%, 92%, and 94%, respectively, of total revenues for 1998, 1997, and 1996. The majority (73%, 83%, and 77%, respectively) of these oil and gas revenues in these periods were derived from the sale of the Company's gas production. The Toledo Bend Properties acquisition, which has a higher percentage of its production from oil (56% of 1998 production), has somewhat altered the Company's predominate gas production mix. Even though the Company has scaled back its 1999 capital expenditures budget, the Company expects oil and gas sales volumes to increase in 1999 when compared to 1998, primarily due to the full year of production from the Toledo Bend Properties. However, to the extent the Company curtails its development and exploration program as a result of the continued low price environment, oil and gas sales volumes will likely decrease in years subsequent to 1999." I am hoping that their oil output will provide the cash needed to increase their drilling activities. I suspect they will need it. I feel that SFY are very capable of consuming large levels of cash in drilling - perhaps more than other companies ? Please correct me if you think this is wrong. Mark