HOUSTON--()--Swift Energy Company (NYSE: SFY) announced today it has begun the resumption of production operations at its Lake Washington Field in Plaquemines Parish and Bay de Chene Field in Jefferson and Lafourche Parishes which were shut-in beginning on August 26 in the face of Hurricane Isaac.
After comprehensive assessment of production and safety systems, Lake Washington and Bay de Chene incurred relatively minor damage. Repairs to infrastructure are not expected to require significant capital expenditures, but prolonged poor weather has further delayed the resumption of field-wide operations in Lake Washington. The Company estimates that approximately 25% - 30% of its Lake Washington production has been brought back online, with the remaining production shut-in until minimal, but critical, repairs are made to the CM3 and Caseload facilities. These repairs should be completed within seven to ten days and field-wide production restored to pre-storm levels shortly thereafter. All pipeline and barge outlets for hydrocarbon sales in the area are operational and no long term impact to the field is anticipated as a result of this storm.
While the longer term prospects of the field remain intact, the Company currently expects that approximately 175,000 barrels of oil equivalent of production will have been deferred from the third quarter as a result of Hurricane Isaac. For the full year, it is expected that up to an additional 50,000 barrels of oil equivalent will be delayed as a result of hurricane shut-ins. The Company therefore expects its full year production levels to be approximately 225,000 barrels of oil equivalent lower than previously forecast. Swift Energy will update all previously stated operational and financial estimates with its regularly scheduled quarterly update on November 1, 2012.
Drilling and completion activity in Southeast Louisiana continues to produce promising results and affirms the rich oil inventory of Lake Washington. The LL&E #5, a recompletion performed prior to Hurricane Isaac and previously referred to as the Jellybowl prospect, tested at 1,544 barrels of oil per day and 1.0 Mmcf of gas on a 22/64” choke. A new well drilled during the quarter, the CM 423, was completed and tested at 896 barrels of oil and 0.3 Mmcf of gas on a 22/64” choke prior to being shut-in for Hurricane Issac.
Swift Energy Company, founded in 1979 and headquartered in Houston, engages in developing, exploring, acquiring and operating oil and gas properties, with a focus on oil and natural gas reserves onshore in Texas and Louisiana and in the inland waters of Louisiana.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections, guidance or other statements contained herein, other than statements of historical fact, are forward-looking statements, including targets for 2012 production and reserves growth, estimates of 2012 capital expenditures and guidance estimates for the second quarter of 2012 and full-year 2012. These statements are based upon assumptions that are subject to change and to risks, especially the uncertainty and costs of finding, replacing, developing and acquiring reserves, availability and cost of capital, labor, services, supplies and facility capacity, availability of transportation, hurricanes or tropical storms disrupting operations, and, volatility in oil or gas prices, uncertainty and costs of finding, replacing, developing or acquiring reserves, and disruption of operations. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Certain risks and uncertainties inherent in the Company’s business are set forth in the filings of the Company with the Securities and Exchange Commission. Estimates of future financial or operating performance provided by the Company are based on existing market conditions and engineering and geologic information available at this time. Actual financial and operating performance may be higher or lower. Future performance is dependent upon oil and gas prices, exploratory and development drilling results, engineering and geologic information and changes in market conditions.