Swift Energy to acquire New Zealand assets from Shell

Swift Energy New Zealand Ltd. has agreed to acquire Southern Petroleum (New Zealand) Exploration Ltd. from an affiliate of the Royal Dutch/Shell Group for $55 million (US) in cash. The transaction should close in 30-60 days.

By the OGJ Online Staff

HOUSTON, Dec. 4 -- Swift Energy New Zealand Ltd. has agreed to acquire Southern Petroleum (New Zealand) Exploration Ltd. from an affiliate of the Royal Dutch/Shell Group for $55 million (US) in cash.

The transaction should close in 30-60 days.

Southern NZ owns interests in four onshore producing oil and gas fields, hydrocarbon-processing facilities with excess capacity, and pipelines connecting the fields and facilities with terminals and markets, all in the Taranaki basin, New Zealand.

Terry Swift, president and CEO of parent company Swift Energy Co., said, "Swift will not only be adding proved producing properties and immediate increases in cash flow, but more importantly adding significant facilities and infrastructure that can enhance the value of our Rimu and Kauri areas and potentially accelerate their development. By building pipelines from the Rimu/Kauri area to the Waihapa Production Station, we would be able to export crude oil at New Plymouth and transport natural gas to electrical generation facilities through our own pipelines."

Swift Energy New Zealand has entered into agreements with Shell NZ with regard to oil storage facilities, hydrocarbon transportation, and crude marketing.

Swift will acquire a 96.76% working interest in four petroleum mining licenses, which include Tariki field (PML 38138), Ahuroa field (PML 38139), Waihapa field (PML 38140), and Ngaere field (PML 38141). The fields produce 930 b/d of oil, 23.2 MMcfd of gas, and 450 b/d of gas liquids.

Net proved reserves as of Nov. 1 are 65 bcfe, with 74% of the reserves being gas.

The TAWN asset package includes gas processing facilities, oil and gas pipelines, and other infrastructure.

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