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
Under the companies' agreements, effective January 1, 2014, Saka will pay Swift $175 million to acquire a 36% full participating interest in Swift Energy's Fasken properties. $50 million will be used to carry a portion of Swift's future field development costs. Swift will remain the operator of the properties, and be responsible for conducting all drilling, completion and production operations.
“Saka recognizes the opportunity in the Fasken area to create value through highly productive natural gas drilling, and is aligned with Swift Energy in its assessment of the valuation of our Fasken acreage. Both parties are committed to rapidly realize the full value of this asset through an aggressive, disciplined development program.”
The closing date is anticipated at the end of June of 2014. Per the agreements, the companies will jointly determine development plans for the field.