Swift Energy held its annual analyst meeting the past week. It has been an exciting two years for the company as both production and reserves have grown by more than 40%. During that time, the Eagle Ford has become the company's top performing asset.

Highlights from the Eagle Ford portion of the company presentation include:

• Initial production rates have improved 10% in oil & condensate wells
• Estimated Ultimate Recoveries have improved in step at 10%
• Drilling and completion costs have come down 10% or $800,000

Wells benefited in 2012 from more precise lateral location (in the lower Eagle Ford) and improved completion techniques. Drilling days have fallen by 22% to 8.5 days and the company is completing 7-8 stages per day compared to just 4-5 in 2011.

Successful downspacing tests at 60-80 acres in McMullen and La Salle counties have increased the company's drilling inventory by 30%.

Swift Plans For Eagle Ford JV Partner

In an effort to accelerate development of Swift Energy's Eagle Ford properties, the company plans to bring in a joint venture partner. A joint venture partner, or outside capital, will enable the company to improve project returns and accelerate value recognition. The working interest that is being offered was not disclosed, but I suspect we'll see Swift raise upwards of $100-200 million.