Printer Friendly

SWIFT ENERGY REPORTS PRODUCING PROPERTY ACQUISITION AND PRODUCTION PAYMENT AGREEMENT

 SWIFT ENERGY REPORTS PRODUCING PROPERTY ACQUISITION
 AND PRODUCTION PAYMENT AGREEMENT
 HOUSTON, June 8 /PRNewswire/ -- Swift Energy Company (NYSE, PSE: SFY) today announced that it has purchased for its own account interests in 75 gross (33.2 net) producing wells in the AWP Field, located in McMullen County, Texas, from a subsidiary of Manville Corporation (NYSE: MVL) and concurrently sold a production payment in these properties to Enron Gas Services for $14 million.
 Interests were purchased in 43 oil wells and 32 gas wells producing from the Olmos Sand at an average depth of 9,600 feet. Although most of the wells are classified as oil wells, 70 percent of the revenues are generated from the sale of natural gas and natural gas liquids. Swift and its independent consultants estimate that the purchased interests have proved net reserves of approximately 28,400 billion Btu of natural gas and 900,000 barrels of oil. Swift is currently the operator of all but four of the wells, and as the result of this purchase has increased its average working interest in the wells from 5.8 percent to 58.6 percent.
 In the sale of the production payment to Enron, Swift committed to deliver monthly a certain quantity of hydrocarbons to Enron, representing an interest in reserves equivalent to approximately 12,300 billion Btu of natural gas beginning May 1, 1992. Swift will be responsible for production related costs associated with operating the properties. In addition to the production payment, Swift has entered into a gas sales and purchase contract that offers Enron Gas Services an opportunity to purchase at market price a portion of the remaining reserves from the same properties for the term of the production payment.
 Swift will record the sale of hydrocarbons as delivered under the production payment at the fixed price based on the aggregate amount received from Enron, which together with hydrocarbon sales in excess of the production payment is expected to increase the company's monthly oil and gas revenues by approximately 40 percent over current levels, subject to normal depletion, depreciation and amortization.
 "The purchase of these properties from Manville using nonrecourse funds from Enron offers a unique opportunity for the company to substantially increase its proven oil and gas reserves," said A. Earl Swift, chairman and president of Swift Energy Company. "This transaction is another example of our continuing efforts to use innovative methods to further the growth in the company's oil and gas reserves."
 Swift Energy Company is an independent oil and gas company primarily engaged in the acquisition, exploration, development and operation of oil and gas properties. It has interests in over 3,000 oil and gas wells located in 18 states, operating 674 wells and overseeing the operation of the remainder.
 -0- 6/8/92
 /CONTACT: John R. Alden, senior vice president of Swift, 713-874-2700 or 800-777-2412/
 (SFY MVL ENE) CO: Swift Energy Company; Manville Corporation; Enron Gas Services ST: Texas IN: OIL SU: TNM


GK-OS -- NY009 -- 7773 06/08/92 09:32 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 8, 1992
Words:502
Previous Article:UNIVERSAL VOLTRONICS COMPLETES ACQUISITION OF KEYTEK INSTRUMENT CORPORATION
Next Article:MIT PROFESSOR DR. WARREN SEERING WILL CHAIR TOP SOURCE ADVANCED TECHNOLOGY REVIEW BOARD AND OVERSEE ARC SEAT SAFETY MOTION PROJECT
Topics:


Related Articles
SWIFT ENERGY AND NATURAL GAS CLEARINGHOUSE ANNOUNCE A JOINT EFFORT TO DEVELOP A MAJOR GAS STORAGE FACILITY
SWIFT ENERGY REPORTS 1991 RESULTS
SWIFT ENERGY REPORTS FIRST QUARTER RESULTS
SALES OF SWIFT ENERGY'S UNIQUE NO-LOAD PROGRAM HITS RECORD LEVEL
SWIFT ENERGY COMPANY SIGNS AGREEMENT WITH RUSSIAN COMPANY
MCFARLAND ENERGY ANNOUNCES AGREEMENT FOR MAJOR PROPERTY ACQUISITION
SWIFT ENERGY REPORTS SUCCESSFUL 1993 EXPLORATION PROGRAM
/C O R R E C T I O N: TORCH ENERGY ADVISORS INCORPORATED/
SWIFT ENERGY DOUBLES ACREAGE POSITION IN PROLIFIC AWP OLMOS FIELD
SWIFT ENERGY MORE THAN DOUBLES AUSTIN CHALK ACREAGE

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters