Swift Energy Company (NYSE: SFY) announced today the status of initial physical assessments of its Lake Washington Field in Plaquemines Parish and Bay de Chene Field in Jefferson and Lafourche Parishes.
According to the National Hurricane Center, Hurricane Isaac made landfall Tuesday morning, August 28, 2012, as a Category 1 Hurricane, approximately 38 miles south/southeast of our Lake Washington Field in Plaquemines Parish.
According to plan, after all of Swift Energy’s employees, contractors and their families were accounted for and determined to be safe, inspection crews mobilized to these fields as soon as it was safe to do so and conducted preliminary assessments of individual facilities and infrastructure. Minimal damage to Swift Energy property in both fields was observed during these inspections. The Company has separate engineering teams making further assessments of electrical systems, instrumentation, integrity of flow lines, substructure of platforms and navigation hazards in both of its South Louisiana fields.
The Company currently anticipates that it will take approximately one week to restore its South Louisiana production operations. Once production has been restored, an accurate assessment of what impact Hurricane Isaac will have on third quarter production levels and Swift Energy’s full year production guidance estimates will be available. Drilling, completion, re-completion, and well intervention activity levels are expected to resume as soon as it is deemed safe to do so.
Swift Energy is also assessing the availability of market outlets for its products once production is resumed. The crude oil pipeline Swift Energy accesses in Lake Washington may be able to take crude oil production by the time that Lake Washington production is restored, but this cannot be confirmed at present. Coastal shipping lanes have been reestablished and cleared for commercial activities, but barge transportation of crude oil may be limited by the operational status of onshore terminals or barge availability.