SWIFT ENERGY SHARPENS FOCUS ON EAGLE FORD & SWIFT ENERGY CLOSES LAKE WASHINGTON TRANSACTION

SWIFT ENERGY SHARPENS FOCUS ON EAGLE FORD & SWIFT ENERGY CLOSES LAKE WASHINGTON TRANSACTION

Swift Energy Company (OTCQX: SWTF) (the “Company”) announced today that it closed its previously announced divestment of the Lake Washington field in South East Louisiana.

The net proceeds received by Swift Energy ($40.0 million, less customary closing adjustments) will be used to reduce the amount of borrowings under the Company’s credit facility which was approximately $245 million prior to receipt of these funds.

SOURCE:  http://www.swiftenergy.com/file/Index?KeyFile=36939826

 

Swift Energy Company (OTCQX:SWTF) (the “Company”) announced today that it had entered into a purchase and sale agreement providing for the Company to sell its Lake Washington field in South East Louisiana. This strategic divestiture is a significant step in achieving the Company’s goal of becoming a more focused Eagle Ford player, where it has identified over 400 high-quality drilling locations.

Transaction Highlights:

  • Cash consideration of $40.0 million upon closing, which is expected in early December 2016, subject to customary closing conditions and adjustments;
  • Approximately 14,000 net acres in Plaquemines Parish, including 23 producing wells;
  • Net sales of approximately 1,160 barrels of oil equivalent per day (97% oil) as of the end of the third quarter 2016; and
  • Upon closing of the transaction, Swift will also eliminate the ARO liability associated with this asset from its books and records.

Interim Chief Executive Officer Bob Banks commented, “Swift has made several strategic moves this year to actively manage our portfolio and transform the company into a premier Eagle Ford producer, and today’s announcement is consistent with that strategy. We’ve had a tremendous amount of success with the development of our assets in South Texas, and this transaction allows us to focus exclusively on our very best rate of return projects.”

Bob Banks commented further, “The net proceeds from this transaction, which will go toward paying down the revolver, will improve our liquidity profile, strengthen our balance sheet, and provide the financial flexibility we need to execute on our 2017 development plans. Additionally, we have identified other smaller monetization opportunities within the portfolio which we will continue to actively pursue.”

The Company also announced it has recently increased its gas hedge position for 2017. Specifically, the Company added favorable collars with corresponding floor and ceiling prices, as outlined below.

2017

Q1

Q2

Q3

Q4

Gas Collars

Volume (MMBtu) 750,000 2,400,000 2,865,000 3,102,000
Floor Price (put) $ 3.3000 $ 3.0500 $ 3.0500 $ 3.1000
Ceiling Price (call) $ 3.9000 $ 3.5450 $ 3.5850 $ 3.7150

SOURCE:  http://www.swiftenergy.com/file/Index?KeyFile=36802766

 

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