Low crude prices claim another Eagle Ford victim as Swift Energy Corp. joins 19 other Texas-based oil and gas producers who filed for bankruptcy in 2015.
Related: Magnum Hunter Files Chapter 11
On the last day of the year, Swift Energy announced that they, along with eight of its subsidiaries, had filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
This marks the 40th North American oil and gas producer who was prodded into bankruptcy court in 2015 due to low crude prices.
Swift Energy had worked hard in 2015 to stay afloat, including trimming 60% of its capital budget and cutting 20% of its workforce. But their efforts weren't successful and the company joined other noted Eagle Ford producers such operators as Magnum Hunter, Sabine and Energy & Exploration Partners who couldn't survive the downturn.
Terry E. Swift President and Chief Executive Officer said that this action was necessary due to the plummeting oil and gas prices throughout the year.
“We expect that Swift will exit bankruptcy with a greatly improved balance sheet and additional liquidity to realize the full potential of our assets for all stakeholders, while having sufficient funding to maintain, if not improve our asset base during the Chapter 11 process.”
In the third quarter of 2015, Swift Energy drilled five operated development wells in the Eagle Ford, four in Webb County and one in McMullen County. 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. Swift 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.