Swift Energy today outlined its 2003 plans for its southern US and New Zealand properties, plus a summary of its 2002 production. It also reported the initial findings of Core Labs integrated reservoir solutions division.
Those initial studies demonstrated that water-based drilling and completion fluids had caused significant formation damage in the Tariki sandstone surrounding already drilled well bores in the Rimu-Kauri area.
Swift Energy New Zealand (SENZ) now plans remedial efforts, based on recommendations of Core Labs, on some of the completions already done in the Rimu-Kauri wells.
Proven New Zealand reserves increased 51-53% during 2002 to approximately 154-156 bcfe, replacing 436-448% of 2002 production, This was at an approximate net finding cost of $US1.28-1.32 per mcfe.
The increase in New Zealand proved reserves was primarily attributable to the acquisition of the Tariki, Ahuroa, Waihapa and Ngaere (Tawn) fields from Shell New Zealand last January, though offset by the significant downward reserve revision for Rimu-Kauri.
In mid-2002 production from the Rimu production station was about 1270 barrels of oil per day and gas production up to 2.8 million standard cubic feet per day. Now net production averages about 968 barrels of oil equivalent per day (572 barrels of oil and condensate and 1.8 mmscf of natural gas). This was solely from the Tariki sands.
Swift Energy also said that during the last three months SENZ had reperforated about 10m of the Kauri sands at the Kauri-A4 well, to further test the well and prepare it for hydraulic fracture stimulation. The well subsequently flowed at rates of approximately 1.6 mmscf/d and 58 barrels of condensate per day.
The company's primary purchasers (which include Genesis Power and Contact Energy) also negotiated with SENZ the opportunity to access additional deliverability from the Tawn fields, which will allow the company to potentially sell natural gas at rates above the current contracted amounts.
During the first half of 2003, SENZ said it planned to further evaluate the productivity of the shallow Manutahi sands and the Kauri sands, as well as the Tariki sands in Rimu-Kauri.
These plans called for remediation efforts on certain completions in the Tariki sands based on the Core Labs recommendations and also included the drilling of an additional well in the Manutahi sands and fracture stimulating the Kauri sands using techniques based on Core Labs' conclusions.
Additional work programs might be undertaken in these areas during the second-half of the year.
The average oil price received by SENZ during the fourth quarter of 2002 was expected to exceed $US25.00 per barrel, with natural gas liquids fetching over $US11 per barrel and natural gas $US1.25. About 34% of total company production comes from Tawn and 4% from Rimu-Kauri.
