HOUSTON--(BUSINESS WIRE)--Swift Energy Company (OTC PINK:SFYWQ-FORMER) (the “Company”) announced it had closed its previously announced agreement with TEXEGY LLC (“TEXEGY”) for a 75% share of the Company’s holdings in the South Bearhead Creek Field and Burr Ferry Field areas located in Central Louisiana (the “Properties”).
Swift Energy and TEXEGY have entered into a joint development agreement and a joint operating agreement to continue operation and development of the Properties. SV Energy Company, LLC, an affiliate of TEXEGY, now serves as the operator of the Properties, conducting all drilling, completion and production operations.
The net proceeds received by Swift Energy in this transaction were used primarily to reduce the amount of borrowings under the Company’s credit facility prior to the Chapter 11 reorganization effective date and for other general corporate purposes.
Chief Executive Officer Terry Swift commented, “We are excited to be partnering with TEXEGY on this joint venture. This transaction allows us to strengthen our liquidity profile while providing for a partnership that is well suited for growth opportunities in the region. Both sides worked diligently to bring this transaction to a close, and I am confident that together we can optimize the value of these assets.”
TEXEGY LLC was formed in the fall of 2014 to acquire, operate, and develop producing conventional oil and gas properties in Texas and Louisiana. This acquisition includes oil-weighted properties in the Burr Ferry and the South Bearhead Creek fields in Louisiana, including 62,000 acres of mineral servitude.
Michael S Pedrotti, President of TEXEGY commented, “We are particularly excited about this opportunity. This acquisition represents another milestone along our path to acquire conventional assets in Texas and Louisiana. We are fortunate to have Swift as a partner. Swift’s knowledge and expertise will greatly enhance this venture. ”
Rajan Ahuja, CEO of TEXEGY said, “These are the kinds of assets that TEXEGY focuses on acquiring - conventional oil and gas producing assets with significant upside. We are confident that we can simultaneously increase daily production and reserves in the ground at reasonable cost which will prove profitable even at a $40 oil price.”
About Swift Energy Company
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 the Eagle Ford trend of South Texas and, to a lesser extent, the onshore and inland waters of Louisiana.
About TEXEGY LLC
TEXEGY LLC is an oil and gas company focused on acquiring, developing and operating oil and gas assets in Texas and Louisiana.
This 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, or other statements other than statements of historical fact, are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurances can be given 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 Swift Energy Company with the Securities and Exchange Commission.