Swift Energy – PT Saka Energi Close Eagle Ford JV Deal

Saka Paid Swift $147-Million at Closing
Swift Eagle Ford Acreage Map

Swift Energy Eagle Ford Acreage Map | Click to Enlarge

Houston-based Swift Energy and PT Saka Energi Indonesia (Saka) have closed on their Eagle Ford joint venture to develop ~8,300 acres of the Fasken field in Webb County, TX.

The $175-million agreement was previously announced in May of 2014. At closing, Swift received approximately $147-million, which included an agreed upon $125-million in cash consideration. Approximately $38-million of Saka’s original $50 million drilling carry obligation remains; however, Swift officials indicate that commitment should be fulfilled during the 2016 calendar year.

Under the agreement, Saka gains a 36% interest in Swift’s Fasken acreage. Swift will remain the operator for the area.

Read more: Swift Energy – PT Saka Energi Eagle Ford Joint Venture

Swift Energy CEO Terry Swift, said, “both parties have worked diligently towards the conclusion of this transaction, and we look forward to working alongside Saka to optimize this asset’s value through an advanced technology development program,”

In related news, Swift Energy also announced in May of 2014, that it expanded a long term agreement for natural gas gathering services in Webb County with Howard Energy Partners and its affiliates. Under the terms of the agreement, Swift Energy will have up to 160-million cubic feet of gas per day of firm capacity for its Fasken field natural gas production.

Read more at swiftenergy.com

Swift Energy – PT Saka Energi Eagle Ford Joint Venture

Saka To Pay $175 Million to Swift for 36% Interest in Webb County Acreage
Swift Eagle Ford Acreage Map

Swift Eagle Ford Acreage Map | Click to Enlarge

Houston-based Swift Energy announced in early May of 2014 that it has entered a joint venture agreement with Indonesian-based PT Saka Energi to develop 8,300 Eagle Ford acres in the Fasken area of Webb County.

In March of 2014, Swift revealed it was in negotiations for a joint venture to accelerate development in the Fasken area, after completing three Eagle Ford test wells with average initial production (IP) rates of 22.1 mmcf/d.

[Read more…]

Swift Energy Reveals Initial Production Rates for Six Eagle Ford Test Wells

Company Officials Say IP Rates from Test Wells Indicate More Predictable Growth Profile in Acreage
Swift Eagle Ford Acreage Map

Swift Eagle Ford Acreage Map | Click to Enlarge

Swift Energy tested three Eagle Ford wells in the Fasken area of Webb County, with average initial production (IP) rates of 22.1 mmcf/d. The Company has identified an additional 50-60 undeveloped lower Eagle Ford locations in the Fasken area and expects future well costs to be approximately $7.5 million. The company is currently in the negotiations process for a joint venture in this area to accelerate development.

[Read more…]

Swift Energy Is Pumping More Fluid & Proppant in Eagle Ford Completions

Lower Eagle Ford Proving to be the Most Productive
Swift Eagle Ford Acreage Map

Swift Eagle Ford Acreage Map | Click to Enlarge

Swift Energy is testing higher volumes of fluid and proppant in Eagle Ford well completions. The company’s number of Eagle Ford completions actually slowed to nine in the third quarter, but production grew due to better well performance.

The company’s best well on a boe basis in the third quarter produced over 2,300 boe/d. The completion method utilized on the well included 25% more fluid and proppant. Completion testing didn’t stop there. [Read more…]

Swift Energy’s Eagle Ford Well Costs Are Down & IP Rates Are Up

Drilling Costs Are Down More Than $1 Million Per Well Over the Past Year
Swift Energy Eagle Ford Drilling Savings

Swift Energy Eagle Ford Drilling Savings | Click to Enlarge

Swift Energy has seen its well costs fall and its initial production (IP) rates rise in 2013. Across two areas in South Texas, the company’s IP rates are up 15% or more and drilling and completion costs are down 13% or more.

That’s exactly what operators want to see and its why several companies are selling assets to fund accelerated development programs in the Eagle Ford.

Swift is selling assets in Louisiana and just last week Forest Oil sold assets in the Panhandle to fund its Eagle Ford operations. [Read more…]

Swift Energy Will Fund Accelerated Eagle Ford Development With Louisiana Sale

Swift Energy Eagle Ford Production Chart

Swift Energy Eagle Ford Production Chart | Click to Enlarge

Swift Energy has abandoned plans to find a joint venture partner in the Eagle Ford in favor of selling assets in Central Louisiana. Executives note the lack of premium placed on their Eagle Ford assets in the market. They view the Eagle ford as the best assets in the company and prices simply aren’t what they were the past few years.

Instead, the company will sell assets in Louisiana. As a result, the capital budget in the Eagle Ford was increased by $50 million and Swift plans to maintain a two rig program through the rest of 2013.

Company-wide production was down slightly in the quarter and Eagle Ford production was down to flat. There were gas gathering constraints in Webb County during the quarter, but Eagle Ford production had rebounded to grow 10% in July. [Read more…]

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