Swift Energy Enters JV for Onshore Cook Inlet Basin

Swift Energy has entered into a participation agreement with Aurora Gas relating to a large onshore acreage position in the Cook Inlet Basin of Alaska. Swift will earn an average working interest of 37.5 percent in approximately 54,500 gross acres in seven areas of mutual interest, which represents one-half of Aurora Gas' working interest in the areas of mutual interest.

The exploratory commitment well, known as the Endeavour #1 in which Swift Energy has a 50-percent working interest, is scheduled to spud in the next few weeks. Aurora will operate this initial exploration well, which has multiple targets with crude oil and natural gas potential. At least six other exploration prospects have been targeted on the acreage. There are two main hydrocarbon plays identified in this area, the Hemlock-Tyonek oil play and the Beluga-Sterling natural gas play.

"This new venture in the onshore Cook Inlet Basin in Alaska fits perfectly with Swift Energy's stated strategy of looking for under-explored areas with large acreage positions and significant reserves potential in a prolific producing basin with multiple productive horizons," said Bruce Vincent, Swift's president. "We look forward to working with Aurora Gas, an experienced operator in the Cook Inlet, establishing a successful partnership and expanding upon their successes to date."