Swift Energy Company (NYSE: SFY) announced today revised operating and financial guidance estimates for the 2014 calendar year in anticipation of the scheduled June 30, 2014 closing of a joint venture with Saka Energi Indonesia, covering the Company’s Fasken area in Webb County, Texas.
Swift Energy is expected to receive approximately $150 million in total cash consideration upon closing of this joint venture agreement, subject to actual production, pricing and capital expenditures between the effective date of January 1, 2014 and anticipated closing of June 30, 2014. The funds received at closing will be used for general corporate purposes and to reduce the amount drawn on the Company’s bank credit facility of which the $450 million borrowing base will be reduced by a pre-determined amount of $34.2 million upon closing of the transaction.
Terry Swift, CEO of Swift Energy, remarked, “Our recently announced strategic joint venture in our Fasken area improves our liquidity and allows us to continue our operational efficiency gains in South Texas. As a result, we are raising our capital expenditure levels to $350 -$400 million from previous levels of $300 - $350 million. This additional spending in 2014 will be directed to our high value natural gas and liquids rich development programs in South Texas. We expect to drill 6-12 additional wells in this year’s program and are revising our production estimates to 11.5 – 11.8 million barrels of oil equivalent (“MMboe”) from our prior estimates of 11.3 – 11.8 MMboe. This adjustment to our 2014 work program allows us to achieve our previously guided production volumes even though Swift Energy’s interest in Fasken will be reduced beginning June 30 (the scheduled joint venture closing date) by just more than one-third under the terms of the joint venture agreement.”
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 oil and natural gas reserves onshore in Texas and in the inland waters of Louisiana.