Swift Plans 2D Survey of Rimu-Kauri Prospect

Swift Energy plans to conduct a 2D transitional zone seismic survey in the Rimu-Kauri area to help identify deep Tariki sands.

The 70 to 110 km seismic survey of the nearshore zone in PEP 38719 will help identify locations for testing of the upper and lower Tariki plates along a trend with the original Rimu discovery well. The survey will also help identify additional potential Kauri and Manutahi sand targets.

The annual report notes that PEP 38719 now includes the two areas, previously identified as PEP 38756 and PEP 38759, along the Taranaki coast south of the Kapuni gas field.

Additional drilling to the Tariki sands is also under study for this year.

Of the wells Swift Energy has drilled to the deeper Tariki sands, its Rimu-A1 discovery, drilled in 1999, and the Rimu-A3 development, drilled in 2001, continue to produce, with the Rimu-A1 producing at an average rate of 178 barrels of oil and 0.8 MMcf of natural gas per day, the report says.

The shallow Manutahi development wells in the Kauri field produced an average of 300 barrels of oil per day in the six-months from July 2004 to December 2004. This includes the Kauri-F1 well drilled in 2003. Swift plans to drill a further four to six development wells to the Manutahi sands in 2005. These sands have some properties similar to that of the Miocene sands targeted in Swift's productive Lake Washington property in Louisiana.

Swift Energy's 2005 drilling program includes the drilling of three to four more wells to the Kauri sands, which appear to be a substantial gas-condensate producing formation, the report says.

Swift Energy's New Zealand reserves at year-end 2004 totalled 147.1 Bcfe, which was 16% lower than year-end 2003 levels, primarily because drilling during the year was focused almost entirely on development drilling. Thus, no gains were realised from exploratory drilling in 2004. In addition, downward revisions of reserves occurred in the Tariki and Manutahi sands in the Rimu/Kauri area.

Rimu/Kauri area proved reserves at year-end 2004 totaled 108.1 Bcfe, representing 73% of Swift's New Zealand reserves, 48% of which are natural gas reserves.

Approximately 42% of Swift's New Zealand proved reserves are categorized as undeveloped and are in the Rimu/Kauri area.

Swift says it is in a key position to expand its two core areas in the Taranaki Basin. The company is also in the position to develop a new core area outside of Rimu/Kauri and TAWN.

In early 2005 the Tariki-D1 development well, the first well drilled by Swift in the TAWN area, was producing initial flow rates of 1.0 MMcf of natural gas per day and 280 barrels of petroleum liquids per day with further testing scheduled.