Swift Unveils 2007 Capex Plans
Swift Energy Co. on Wednesday announced details of its currently planned $350 to $400 million in total capital expenditures in 2007, net of minor non-core dispositions and excluding any potential property acquisitions. Approximately 95% of the budget is targeted for domestic activities, primarily in its South Louisiana region. For 2007, Swift Energy is targeting total production to increase 7% to 10% and proved reserves to increase 4% to 6% over their respective 2006 levels.
In updating its 2007 activity to date, Swift Energy reported preliminary results from the drilling of its first exploration wells in the Bay de Chene field ("BDC") in Lafourche and Jefferson Parishes, which are part of the Company's South Louisiana region. The Faria prospect exploration well was recently drilled with pipe set and is awaiting completion operations. Swift Energy is planning to immediately drill a second well to develop this prospect and to test a deeper objective that was not reached in this initial well. The Teton prospect, a second deep exploration test drilled in BDC, is under evaluation to sidetrack to an updip location. Also in the South Louisiana region, the Company drilled 9 development wells and either has completed or is in the process of completing 8 of these wells in the Lake Washington field.
In the South Bearhead Creek field, located in the Company's Toledo Bend onshore region that spans east Texas and central Louisiana, Swift Energy has recently drilled and completed 2 wells, which are currently scheduled to be fracture stimulated in the next several weeks.
In the South Texas region, the Company recently has drilled 1 development well successfully in the region's anchor asset of AWP Olmos field.
Planned 2007 Regional Activity
Swift Energy's domestic activity will again be predominately focused in the Company's expanded South Louisiana operating region, with the Lake Washington field serving as one of several anchor assets for this region. Swift Energy plans to have at least two rigs operating in this field for most of 2007, which are targeted to drill at least 24-26 wells, with several wells targeting vertical depths to 14,000 feet. Total capital expenditures in Lake Washington for 2007 are expected to range from $160 million to $175 million, including facility upgrades. Additionally in the South Louisiana area, the Company plans to drill up to 8 to 10 wells in Bay de Chene and Cote Blanche Island. In 2007, the Company also plans to drill up to 4 wells in the recently acquired Horseshoe Bayou, Bayou Sale and Jeanerette areas in the South Louisiana region. At least 5 of these wells in the South Louisiana region will be focused on exploration targets derived from 3-D seismic data acquisition and interpretation.
In the South Texas region, Swift Energy plans to drill 10 to 12 wells, focused in the AWP Olmos field. This South Texas drilling program is targeted to maintain natural gas production near current levels throughout 2007. In the Toledo Bend region, Swift Energy expects to drill up to two additional wells in the South Bearhead Creek area and also one to two wells in either the Brookeland (Texas) or Masters Creek (Louisiana) fields.
In New Zealand, Swift Energy's efforts will focus on additional geologic and geophysical field studies and on reviewing a potential 3-D seismic shoot planned for the TAWN area. The Company may drill up to two Waihapa wells in 2007, also located in the TAWN area.
Swift Energy Company, founded in 1979 and headquartered in Houston, engages in developing, exploring, acquiring and operating oil and gas properties, with a focus on onshore and inland waters oil and natural gas reserves in Louisiana and Texas as well as oil and natural gas reserves in New Zealand.