Third Quarter Pricing
The Company realized an aggregate average price of $44.51 per Boe during the quarter, a decline from the $56.31 per Boe average price received in the third quarter of 2011.
In the third quarter of 2012, Swift Energy’s average crude oil prices decreased 3% to $102.73 per barrel from $105.55 per barrel realized in the same period in 2011. For the same periods, average natural gas prices were $2.52 per thousand cubic feet (“Mcf”), down by 32% from the $3.68 per Mcf average price realized a year earlier. Prices for NGLs averaged $31.29 per barrel in the 2012 third quarter, a 46% decrease from third quarter 2011 NGL prices of $57.76 per barrel.
Third Quarter Drilling ActivityIn the third quarter of 2012, Swift Energy drilled fourteen operated development wells and participated in two non-operated development wells. In the Company’s South Texas core area, eleven horizontal wells were drilled to the Eagle Ford shale, which included four wells in LaSalle County and seven wells in McMullen County. In Swift Energy’s Southeast Louisiana core area, three wells were drilled in the Lake Washington field. In the Company’s Central Louisiana/East Texas core area, two non-operated wells targeting the Austin Chalk were drilled in the Burr Ferry field. There are currently three operated rigs drilling in the Company’s South Texas core area and one operated barge rig drilling in its Southeast Louisiana area. One non-operated rig is active in the Central Louisiana/East Texas area. Operations Update: South Texas Operations In the Company’s South Texas core area, twelve operated wells were completed during the third quarter. In McMullen County, six Eagle Ford wells and one Olmos well were completed. In LaSalle County, five Eagle Ford wells were completed.
Initial Production Test Rates of South Texas Horizontal Wells
Completed in Third Quarter 2012
(Operated unless otherwise noted)
|Well Name||County/Formation Target|| Oil
|Carden EF 7H||LaSalle – Eagle Ford||110||236||2.6||779||16/64”||3,435|
|Baetz A EF 1H||LaSalle – Eagle Ford||356||197||1.6||819||18/64”||3,538|
|Baetz A EF 2H||LaSalle – Eagle Ford||468||259||2.1||1,076||12/64”||3,563|
|Alderman Ranch EF 4H||LaSalle – Eagle Ford||153||273||2.3||810||18/64”||2,650|
|Alderman Ranch EF 5H||LaSalle – Eagle Ford||135||260||2.2||759||18/64”||2,437|
|Hayes EF 2H||McMullen – Eagle Ford||632||52||0.4||755||12/64”||3,500|
|Henry EF 1H||McMullen – Eagle Ford||544||56||0.5||678||14/64”||2,625|
|Henry EF 2H||McMullen – Eagle Ford||520||47||0.4||631||14/64”||2,500|
|SMR EF 6H||McMullen – Eagle Ford||1,097||54||0.5||1,226||16/64”||2,407|
|SMR OL 4H||McMullen – Olmos||614||136||0.9||897||16/64”||2,894|
|SMR EF 7H||McMullen – Eagle Ford||912||51||0.4||1,033||16/64”||2,011|
|SMR EF 8H||McMullen – Eagle Ford||837||31||0.3||911||16/64”||1,791|