The PMP 38155 mining permit covers 8,708-acres and allows Swift Energy to fully develop its Kauri area discoveries for a primary term of 30 years. In addition to the existing A and E pads, Swift Energy plans to place up to two additional multi-well drilling pads on the permit for full development of the Kauri Sand, an intermediate depth gas-condensate reservoir. Also, further wells are needed to exploit the Manutahi Sand, a shallow oil reservoir. Current plans call for the drilling of the remaining scheduled Kauri A and E wells, and Manutahi A-L series of wells by March 2006. After that drilling is completed, the drilling of a total of ten additional wells is planned per the Crown Mineral's application to be drilled within the mining permit before July 2008, raising the total field count up to thirty-two wells. Capital expenditures required for these additional activities are expected to be approximately $80 million over the course of the development project.
Bruce Vincent, President of Swift Energy and Swift Energy International, commented that, "Swift Energy is extremely pleased to see that our Kauri area discoveries supported the award to SENZ of a Petroleum Mining Permit. This PMP will allow Swift Energy to complete the development phase of this meaningful, long-term project. Kauri gas production from this area will be processed at the Company's Rimu Production Station. Oil production from the Manutahi Sand will initially be trucked to the Company's Waihapa Production Station. The awarding of this mining permit signifies another significant step for our Company as we continue to develop our exploration permits in New Zealand. As we move forward with the continued delineation of the Rimu/Kauri area, we hope to be able to expand the area covered by this mining permit. The Company also plans to undertake additional exploration drilling later this year in the PEP 38719 area with the drilling of the Tawa prospect, which is part of the Tarata Thrust exploration program."
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