The Houston-headquartered company yesterday said its US$27.9 million 2005 result was up 116% on the US$12.9 million recorded for the same 2004 quarter.

Production - a record 15.9 billion cubic feet equivalent (bcfe) – was up 2% on the 15.5 bcfe of the first 2005 quarter and up 12% on the 14.3 bcfe of a year ago.

While US production increased by 17%, New Zealand production declined by 2% on that of a year ago due to scheduled maintenance work at the Rimu production station, only two of three scheduled crude oil tanker liftings taking place, as well as inherent production decline.

But Swift was looking to its reserves should grow by 5-10% during 2005, primarily through exploration and exploitation in the US and New Zealand, said chief executive Terry Swift.

“Swift Energy has just completed its best first-half, both operationally and financially, and we are encouraged with the early results of our exploration programme in New Zealand.”

Swift Energy New Zealand (SENZ) had recently drilled the Piakau North-A1 well (100% interest) in the Tariki-Ahuroa-Waihapa-Ngaere (Tawn) area of onshore Taranaki to a total depth of approximately 3100m.

Preliminary analysis indicated about 25m of net pay had been encountered in the Eocene-aged target sands. The well was being completed and connected to nearby facilities for testing and production.

Piakau North-A1 had been an “additional” exploration well and was drilled early due to increased capital availability in the SENZ budget.

SENZ was also drilling Tawa-B1 - the first well of the Tarata Thrust Programme - to about 5800m.

It then expected to drill into the nearby Goss prospect later this quarter, followed by an exploration well into the Trapper prospect. These Tarata Thrust wells are being drilled in association with Auckland-headquartered electricity player Mighty River Power.

Also SENZ recently conducted a successful fracture stimulation programme on four more southerly Kauri wells, though the company did not release any details of improved production rates due to the fraccing.

New Zealand’s ever-tightening gas market was also mentioned, with the average gas price for the second 2005 quarter being US$3.05 per thousand cubic feet, up 43% on the US$2.13 for the same 2004 period. Crude oil sales in New Zealand averaged US$50.82 per barrel in the second quarter of 2005, a 36% increase over the same period in 2004.