Swift Energy reports strong third quarter in the midst of the current industry 'energy storm'.
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During a Q3 earnings call, Swift Energy executives reported an adjusted net loss for the third quarter of 2015 of $33.1 million, compared to $2.5 million net income during the same quarter of 2014. Production averaged 2.87 million barrels of oil equivalent (“MMBoe”), above the high end of the Company’s guided range of 2.77 to 2.82 MMBoe.
“We actually have one of the best safety records in our history as relates to 2015. Swift Energy Company is doing everything it can to reduce its costs and improve its performance, and focus on its balance sheet and liquidity.”
Swift's Eagle Ford Operations
During Q3, swift completed eight wells in Webb County and drilled five operated development wells, four in Webb County's Fasken field and one in McMullen County in the the AWP 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 also reduced completion costs in Fasken to $3.4 million compared to $3.8 million in the second quarter of 2015.
Swift also boasted a new enhanced completion design in Fasken during the quarter, which includes 40% more proppant than previously completed wells. 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.
Other Third Quarter Highlights
- Designed and executed a newer enhanced completion technique, which includes increasing the size of the frac job to approximately 2,000 pounds of sand per lateral foot
- Secured and have begun using an additional 30 million cubic feet a day of capacity out in the Fasken area, which is producing at the 190 million a day capacity rate
- Successful cost reduction initiatives including reduced costs for drilling wells in Fasken from $2.4 million to $2.2 million
- An inventory of several hundred high grade Eagle Ford locations
- Total firm capacity of 190 MMcf per day to support continued development of the Eagle Ford in its Webb County acreage