By OGJ editors
HOUSTON, Nov. 8, 2006 -- Swift Energy Co. agreed to pay $20.4 million for wells and acreage in Lake Washington field in Plaquemines Parish, La. The seller's identity was not disclosed.
The acquisition, expected to close before Dec. 31, involves assets northeast and southeast of Swift's existing acreage in Lake Washington field.
The purchased interests consist of 4,400 gross acres, or 2,800 net acres. Current production is 275 boe/d net to the purchased interests and consists of 86% oil.
Swift Energy says total reserves of the purchased properties are 1 million boe of proved reserves and 1.7 million boe of probable and possible reserves. About 36% of the proved reserves are proved developed.
Future development costs for the proved, probable, and possible reserves are estimated at $25.3 million for an all-in acquisition cost of $17.23/boe (or $2.87/MMcfe).