Swift Energy
Swift Energy operates in an area of the Eagle Ford where the formation is prospective for all three thermal maturity windows. The company is drilling wells in the dry shale gas, wet gas, and shale oil windows of the Eagle Ford. The company reports similar rates of return across much of its acreage, but the oil and wet gas windows outperform the dry gas window at $4 natural gas prices. Swift has long-term development plans for its acreage and the Eagle Ford adds another core asset to the company's legacy South Louisiana production. Swift Energy is also actively targeting the Olmos tight gas formation in South Texas. Much of the company's acreage in McMullen County, TX is prospective for horizontal development in both the Eagle Ford Shale and the Olmos Sands.
Swift Energy (NYSE: SFY) is an independent oil and gas exploration and production company with its headquarters in Houston, Texas. The Company was founded in 1979 by Aubrey Swift. The Company’s primary areas of operation are in South Texas, South Louisiana, and Central Louisiana/East Texas.
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Swift Energy Eagle Ford Shale Quarterly Commentary
November 2015
In the third quarter of 2015, Swift Energy drilled five operated development wells, four in Webb County in the Company’s South Texas Fasken core Eagle Ford area and one in McMullen County in the Company's core Eagle Ford AWP area. There are currently two operated rigs drilling in the Company’s South Texas core area. The Company's average drilling well cost in Fasken for the quarter was $2.2 million compared to $2.4 million in the second quarter of 2015.
The Company completed eight wells in the third quarter of 2015, all of which were in Webb County. The average completion cost in Fasken in the third quarter of 2015 was $3.4 million compared to $3.8 million in the second quarter of 2015.
The Company also tested a new enhanced completion design in Fasken during the quarter, which includes 40% more proppant than previously completed wells. To test the deliverability of this new enhanced design, the Fasken 37H and 38H were brought online with average initial production rates of 25.2 and 30.2 million cubic feet per day ("MMcf/d"), respectively. Additionally, the Company's first Upper Eagle Ford test was completed in Faskenwith a 32 stage frac job and 15 million pounds of proppant. Early results from this well are encouraging and in-line with the Company's expectations.
The Company secured an additional 30 MMcf/d of takeaway out of the Fasken area in the third quarter, and is currently producing at its firm capacity of 190 MMcf/d.
May 2015
In the first quarter of 2015, Swift Energy drilled five operated development wells, all in the Company’s South Texas core Eagle Ford area. Within the Eagle Ford shale, four wells were drilled in Webb County and one well was drilled in McMullen County.
Terry Swift commented, “We set several new technical limits in our Webb County Fasken field in the first quarter, including drilling our longest lateral to date at 7,745 feet, achieving our lowest lateral drilling cost per foot of $337, and setting a new horizontal drilling record low of 16.5 days on well site compared to our previous best of 18.5 days.”
“We continue to lower our completed well costs through service cost reductions, new technology applications, and sustained operational efficiencies. Cost reductions initiatives to date are on track, and in some cases, have exceeded our initial expectations. As a result, we anticipate achieving the high end of our previously stated range of 15-30% in drilling and completion cost savings.”
There is currently one operated rig drilling in the Company’s South Texas core area.
Swift Energy has developed an analytical model using data from previously drilled wells using enhanced completion methods over months of production and advanced rate-transient analysis. This analytical model allows the Company to garner a better understanding of flow regimes in the fracture network, hydraulic fracture geometry, and stimulated reservoir volume.
Given the current commodity price environment, Swift Energy’s flowback objectives are now focused on adequate cleanup of the wellbore and cost-efficiency rather than measuring an initial production rate. Because of these new objectives, the Company has shortened the flowback duration and wells will not be brought to the previous test rates. Rather, comparative standards of performance will prospectively be measured by cumulative production achieved over time.
Terry Swift commented, “Based on rate and pressure data from the last three completed Fasken wells (the 24H, 25H, and 26H wells) that were completed in the first quarter of 2015, we have now drilled 17 consecutive wells at Fasken that should meet or beat our current 12 Bcf model.”
May 8, 2014
In the first quarter of 2014, Swift Energy drilled 11 operated development wells, all in the company’s South Texas core Eagle Ford area. In McMullen County, six wells were drilled and in Webb County, five were drilled. As of this update, three operated rigs are being drilled in the company’s South Texas core area.
Eight operated wells were completed during the first quarter. In McMullen County, five Eagle Ford wells were completed and in Webb County, three Eagle Ford wells were completed.
In early May of 2014, the company announced 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.
May 3, 2012
Swift Energy drilled 17 operated wells during the quarter. In South Texas, nine operated wells or development wells were drilled in the Eagle Ford Shale formation in South Texas. Two of these wells were drilled in McMullen County. Two were drilled in Webb County and five wells were drilled in LaSalle County. Five wells were also drilled to the Olmos formation in McMullen County. And Swift Energy Southeast Louisiana core area two wells were drilled in the Lake Washington field. We currently have six operating drilling rigs in our South Texas core area, two in Eagle Ford and Olmos wells. We also have one operated barge rig drilling our Southeast Louisiana area and two non-operated drilling rigs that are active in our Central Louisiana East Texas area.
November 3, 2011
In the Company's South Texas core area, nine operated wells and one non-operated well were completed during the third quarter. In McMullen County, four operated Olmos wells and two operated Eagle Ford wells were completed. In Webb County, two operated Eagle Ford wells were completed and in LaSalle County, one operated Eagle Ford well was completed.
August 4, 2011
During the first week of November, Swift Energy resumed production and sales of natural gas from the Eagle Ford shale in the Fasken field in Webb County, TX. This production had been shut-in as a result of a third party pipeline failure, which was announced on September 29. Intermittent production curtailments are expected in this area as work necessary to ensure the integrity of the system is performed by the operator.
"South Texas Operations
In the Company’s South Texas core area, three operated and two non-operated wells were completed in McMullen County. As a result of more efficient operations and a faster than anticipated pace of well completions, the Company returned its dedicated frac fleet to its vendor for approximately 50 days during the second quarter. By the end of the second quarter, when this frac fleet returned to Swift Energy operations, a backlog of seven drilled but not yet completed wells existed. This frac fleet is expected to average at least four well completions per month in the future. The Company does not anticipate releasing this frac fleet again in 2011 and expects to have four to five operated drilling rigs running in South Texas by the end of the year.
In McMullen County, one Eagle Ford horizontal well and two Olmos horizontal wells were completed during the quarter. The SMR EF 3H, with a lateral length of 4,850 feet was completed in the Eagle Ford shale and had an initial production rate of 1,230 barrels per day (“bbls/d”) of oil, 0.78 million cubic feet of gas per day (“MMcfg/d”) and 60 bbls/d of natural gas liquids, with flowing casing pressure of 1,975 psi on a 18/64” choke.
The R Bracken 38H Olmos well had an initial production rate of 7.5 MMcfg/d and 578 bbls/d of natural gas liquids, with flowing casing pressure of 5,475 psi on an 18/64” choke. The SMR 1H Olmos well had an initial production rate of 1.2 MMcfg/d and 552 bbls/d of oil, with flowing casing pressure of 2,450 psi on a 20/64” choke.
Also in McMullen County, the Company’s joint venture partner completed the Bracken JV 8H and Anthony JV 1H during the second quarter. The initial production rate of the Bracken JV 8H was 10.9 MMcfg/d with flowing casing pressure of 6,575 psi on a 20/64” choke. The Anthony JV 1H had an initial production rate of 8.2 MMcfg/d with flowing casing pressure of 4,922 psi on a 20/64” choke.
To date in the third quarter, Swift Energy has fracture stimulated five horizontal wells in South Texas. The R Bracken 40H Olmos well had an initial production rate of 6.2 MMcfg/d, 480 bbls/d of natural gas liquids and 12 bbls/d of oil, with flowing casing pressure of 5,800 psi on a 20/64” choke. The Siddons 3H Olmos well had an initial production rate of 5.1 MMcfg/d and 398 bbls/d of natural gas liquids, with flowing casing pressure of 5,400 psi on a 20/64” choke. The Whitehurst 3H Olmos well had an initial production rate of 608 bbls/d of oil, 1.4 MMcfg/d, and 106 bbls/d of natural gas liquids, with flowing casing pressure of 2,685psi on a 20/64” choke The remaining two wells completed this quarter are in various stages of flowback and are being tied into facilities.
The current pace of drilling and completion activity in this area will result in a total of twelve or more wells being fracture stimulated during the third quarter of 2011."
May 5, 2011
“…In the Company’s South Texas core area, five operated and three non-operated wells were completed in McMullen and Webb counties. Two wells in the Company’s Fasken area in Webb County were fracture stimulated.
In McMullen County, one Eagle Ford horizontal well and two Olmos horizontal wells were completed during the quarter. The SMR EF 2H was completed in the Eagle Ford with a 16 stage fracture stimulation and had an initial production rate of 1,080 bbls/d of oil and 0.6 MMcfg/d with flowing casing pressure of 2,300 psi on a 18/64” choke. This well was drilled to a lateral length of 5,660 feet and is the first Company operated extended lateral completion that has been performed. The R Bracken 37H Olmos well had an initial production rate of 4.8 MMcfg/d, 226 bbls/d of natural gas liquids and 8 bbls/d of oil, with flowing casing pressure of 5,525 psi on a 16/64” choke after a 9 stage fracture stimulation was performed. The AFP 5H Olmos well had an initial production rate of 2.7 MMcfg/d and 216 bbls/d of oil, with flowing casing pressure of 3,705 psi on a 20/64” choke after a 16 stage fracture stimulation was performed.
Also in McMullen County, the Company’s joint venture partner completed the Bracken JV 5H and Bracken JV 6H during the first quarter using a newly designed stimulation technique. The initial production rate ofthe Bracken JV 5H was 7.6 MMcfg/d, 437 bbls/d of natural gas liquids and 48 bbls/d of oil, with flowing casing pressure of 5,800 psi on a 20/64” choke after a 19 stage fracture stimulation was performed. The Bracken JV 6H had an initial production rate of 5.1 MMcfg/d with flowing casing pressure of 6,520 psi on a 16/64” choke after a 16 stage fracture stimulation was performed. A third joint venture Eagle Ford well was also completed by Swift Energy, using our contracted fracture stimulation fleet. This well, the Whitehurst JV 1H had an initial production rate of 8.4 MMcfg/d with flowing casing pressure of 6,300 psi on an 18/64” choke after a16 stage fracture stimulation was performed.
In April, the SMR EF 3H, with a lateral length of 4,850 feet was completed. The initial production rate of this well was 1,300 bbls/d of oil and 1.2 MMcfg/d with flowing casing pressure of 2,900 psi on a 16/64” choke. As a result of the better-than-modeled performance of these recently drilled SMR Eagle Ford wells in the northern portion of the Company’s McMullen county acreage, a rig may be contracted in 2011 and dedicated to drill Eagle Ford and Olmos oil wells in this area, full time.
In Webb County, the Fasken EF 4H had an initial production rate of 9.3 Million cubic feet of gas per day (“MMcfg/d”) with flowing casing pressure of 4,610 psi on a 20/64” choke after a 12 stage fracture stimulation was performed. The initial production rate of the Fasken EF 5H was 10.7 MMcfg/d with flowing casing pressure of 4,600 psi on a 13/64” choke after a 13 stage fracture stimulation. Both of these wells have performed above expectations.
As a result of better than expected performance of this dedicated frac fleet, the year-end drilled but not completed well backlog was reduced substantially during the quarter. This allowed the Company to return this dedicated frac fleet to its vendor for a period of approximately thirty days during the quarter. As the Company’s drilling and completion capabilities are brought into balance during the year, it is expected that this dedicated frac fleet will need to be returned to the vendor one more time in 2011 for approximately four to six weeks. Swift Energy has added a smaller, “spudder” rig and is evaluating accelerating its drilling pace further by adding a fourth rig capable of drilling horizontal wells in this area…..”
Source: swiftenergy.com