Swift Energy New Zealand has acquired Antrim's interests in two petroleum exploration permits located in the Taranaki Basin through the issuing of 220,000 shares of Swift Energy Company common stock and approximately $US530,000 in cash, effective from last November 1.
The former Antrim interests included a 5% interest in the Swift-operated PEP 38719, where the Rimu and Kauri discoveries are located, increasing Swift's interest in this permit to 95%.
An additional 7.5 % interest was also acquired in PEP 38716, effectively increasing the SENZ interest to 15%, where operator Indo-Pacific Energy is about to use the Parker Drilling 188 rig to start drilling the Huinga-1B sidetrack well.
Swift also reported that since the January buyout of Fletcher Challenge Energy's lion's share in the Tariki, Ahuroa, Waihapa and Ngaere (Tawn) licences from Shell NZ, the production levels of these assets had averaged over 38 million cubic feet equivalent per day (mmcfe/d).
This was over 15% higher than was originally anticipated (32 to 33 mmcfe/d), particularly from the Tariki and Ahuroa gas-condensate wells, due to increased gas demand in New Zealand.
Swift Energy said these increased levels were because of increased demand resulting from the previous winter's drought conditions and the resultant hydroelectric shortfall. The increased production levels were not expected to continue indefinitely, although Swift had a small team in Houston studying various future development options for the Tawn fields, said executive vice-president Bruce Vincent from Houston.
The Rimu production station had been completed and was currently undergoing commissioning, with first production and sale of hydrocarbons expected to be next week. Crude from both Tawn and Rimu-Kauri fields would be sold to Shell NZ, while Tawn gas went, on long-term contract, to Contact Energy. Rimu gas went to fellow electricity generator and retailer Genesis Power and Rimu liquids were going to be sold to Rockgas.
Swift said several companies, apart from Shell NZ, had expressed interest in PEP 38719, of which Shell had an option to purchase 25%.
Both Swift and Shell were also evaluating various approaches to further explore and develop PEP38719. A decision on that and the 25% Shell option was expected within the next two months.
Industry commentators say the other most likely interested parties include Origin Energy, current minority PEP 38719 partner Marabella Enterprises and perhaps even Todd Energy and Greymouth Petroleum - both recent winners in the Shell NZ divestment stakes, picking up stakes in the onshore fields of McKee-Mangahewa and Ngatoro-Kaimiro respectively.
Swift president Terry Swift said his company continued to be pleased with its New Zealand operations. "We are particularly pleased that they (the Tawn properties) have performed better than our initial expectations. We are also pleased with the interest expressed by others in the Rimu-Kauri permit."
He said Swift looked forward to bringing a significant partner into PEP38719 during 2002.
Swift's New Zealand operations were expected to contribute approximately 20% of the group's first quarter 2002 production.
