Swift Energy Company (OTCQX: SWTF) (the “Company”) announced today that it has sold its remaining 25% interest in the Burr Ferry and South Bearhead Creek Fields in Central Louisiana.
The net proceeds received by Swift Energy ($8.0 million, less customary closing adjustments) will be used to reduce the amount of borrowings under the Company’s credit facility which was approximately $212 million prior to receipt of these funds.
Interim Chief Executive Officer Bob Banks commented, “We set out this year to redefine the Company and reposition our portfolio through a series of non-core divestitures. We achieved our objective as this transaction effectively concludes our Louisiana divestiture process. These transactions to date have simplified our business model, as our cost structure is now more representative of our Eagle Ford development program. This will allow us to realize greater efficiencies and scale within our operational footprint.”
The Company also announced it has recently increased its gas hedge position for 2017 and initiated a hedging program for 2018. Specifically for 2018, the Company completed approximately 4.4 Bcf of natural gas swaps at an average price of $3.47 for the first quarter of 2018.