By OGJ editors
HOUSTON, Aug. 30 -- Swift Energy Co., Houston, plans a development program on properties in southern Louisiana it has agreed to acquire from BP America Production Co.
Swift agreed to pay $175 million in cash for BP's interests in five primary onshore properties.
The properties are in Bayou Sale, Horseshoe Bayou, and Jeanerette fields in St. Mary Parish; High Island field in Cameron Parish; and Bayou Penchant field in Terrebonne Parish.
Swift will acquire the majority working interest in BP's operated wells in the fields and varying interests in nonoperated wells.
The company estimates total reserves of the purchased properties at 58.2 bcf of gas equivalent proved and 28.1 bcf probable. About 67% of the proved reserves are proved developed.
Future development costs of the proved and probable reserves are estimated at $45 million.
During the first half of 2006, production averaged 12 MMcfd of gas equivalent net to the purchased working interests, 75% gas.
Swift expects its 2007 budget to include $20-25 million of capital expenditures in the acquired fields.
It has identified as many as 15 drilling opportunities in the area of Bayou Sale and Horshoe Bayou fields, which are 13 miles southeast of its Cote Blanche Island field.
It sees opportunities for recompletion and other work in Bayou Penchant field, in which it will hold a 50% nonoperated working interest.
At High Island field, it is studying opportunities in Miocene Marg Howei and Oligocene Camerina sands at 15,000-17,000 ft.
In Jeanerette field, which produces from Miocene Planulina sands at 10,000-15,000 ft from the flank of a salt dome, Swift is considering several proved undeveloped locations.