Executive vice-president Bruce Vincent told United States analysts today that New Zealand was heading towards "a very severe, very acute" gas shortage in the next few years.

Lots of options for overcoming this problem are being looked at, including Contact Energy and Genesis Power investigating the feasibility of importing LNG into New Zealand.

Last month Contact and Genesis, the country's largest gas users, said they were studying the feasibility of developing a multi-million-dollar LNG receiving facility in New Zealand.

Vincent said the likely landed cost for LNG in New Zealand was rumoured to be about $US3-4 per Gigajoule "and we will be happy to compete against the price".

Commentators say onshore gas will always be cheaper than imported LNG.

Swift Energy has seen its average composite realised price increase for the seventh straight quarter in New Zealand, with the most recent quarter due to higher crude oil prices, the tightening gas market, and beneficial exchange rate.

The composite average price for New Zealand in the third quarter of this year was $US2.48 per thousand cubic feet equivalent (mcfe), a 9% increase over the previous quarter and 26% up on the third quarter of 2002.

Swift Energy New Zealand received an average price of $US1.87 per mcf for its gas in the third quarter of 2003, up 46% from $US1.28 a year earlier; while its crude oil averaged $US28.83 per barrel; and natural gas liquids were $US13.76 per barrel. Overall production for the third quarter 2002 was 4.9 bcfe, up 18% over production a year ago.

The Kauri-E1 and Kauri-E2 wells had been completed and fracture stimulated during the last quarter, with the Kauri-E1, E2 and A4 wells producing from the Kauri sand into the nearby Rimu production station. A fourth well targeting the Kauri sand, the Kauri-E3 well, was planned to spud later this year.

Vincent said Swift Energy planned more drilling in the Kauri field in onshore south Taranaki next year, targeting the Manutahi and Kauri formations, both shallow sands.

President and chief executive Terry Swift said his company' expected petroleum production to grow at 10-15% during the next year, driven predominately by growth in Lake Washington and New Zealand.

The Houston company's overall net income increased 263% for the third quarter of 2003 to $US7.1 million, with total revenue being $US51.6 million.