Swift, Saka partner up in Webb County
Swift Energy Co. has agreed to sell a working interest in a portion of its Eagle Ford shale acreage in Webb County, Tex., to a subsidiary of Indonesia's largest natural gas transportation and distribution company for $175 million.
PT Saka Energi Indonesia, the upstream oil and gas unit of PT Perusahaan Gas Negara (Persero) Tbk (PGN), agreed to pay Swift a total consideration of $175 million in exchange for a 36% working interest 8,300 acres in the company's Fasken area project.
Saka is slated to pay Swift $125 million at closing and another $50 million in future field development costs. The deal is expected to close around Jun. 30.
Terry Swift, chief executive officer of Swift, said the deal will enable the company to drill another 6-12 wells in South Texas this year.
In a separate deal, Swift moved to expand a long-term agreement with Howard Energy Partners for natural gas gathering services in Webb County. Up to 160 MMcfd of firm capacity is expected to be available for Swift's Fasken area gas production in early 2015.
During the first quarter 2014, Swift brought three wells online in the Fasken area. Each well maintained a gross production rate in excess of 15 MMcfd during its first 60 days online.
"At the end of this 60 day period, each of these wells had produced greater than 900 MMcf of gas while maintaining flowing pressures materially higher than older wells completed with shorter laterals and less proppant," Swift said.
Swift will remain operator of the Fasken properties, conducting all drilling, completion, and production operations.