The company, which has its headquarters in Houston, today said the record second quarter 2006 income was up 37% on the $27.9 million earned in the year-ago period.
Latest quarterly production of 16.3 billion cubic feet equivalent was up 2% on year, thanks to record domestic production of 13.1Bcfe, which rose 10%.
But output in New Zealand during the quarter slipped 20% on year to 3.2Bcfe due to reduced crude oil liftings, scheduled facility maintenance and natural production decline. The figure also represented a 17% production drop from the first previous quarter.
Continuing strong global oil prices contributed to Swift’s New Zealand average realised price of $4.32 per thousand cubic feet equivalent during the quarter, which rose 14% on year from $3.79.
The company’s New Zealand-based McKee blend crude oil sold for an average $73.90 per barrel compared with $50.82/bbl in the same period in 2005.
The average realised price for its New Zealand natural gas fell 7% on year to $2.83 per thousand cubic feet equivalent.
Its New Zealand natural gas liquids (NGL) contracts yielded an average price of $18.14/bbl during the quarter, compared with $19.30/bbl in the year-ago period.
The company said its lower New Zealand gas and NGL prices were partly because they were denominated in New Zealand dollars, which had been declining against the greenback this year.
In the latest quarter, Swift started testing its onshore Taranaki exploration wells in New Zealand, Goss-A1 and Trapper-A1.
While the deeper Eocene-aged objectives were deemed non-commercial in the wells, both exploration prospects had intermediate depth objectives that were currently being tested. It is understood the zones of interest include the Mangahewa, Tikorangi and Tariki formations.
Goss and Trapper are the second and third wells to be drilled in a deep-gas exploration venture with state-owned downstream player Mighty River Power. The first, Tawa-B1, was a duster, failing to find commercial hydrocarbons last year.
Swift also said a development well in the more southern onshore Taranaki Kauri field proved unsuccessful.
“As a result of our domestic production increases, 65% of Swift Energy’s second quarter production is liquid hydrocarbons, crude oil and natural gas liquids. With today’s elevated crude oil prices and this production mix, we expect to deliver record results in the second half of 2006,” said company chairman Terry Swift.
“Swift Energy should meet its guidance for production growth of 14-18% and make 2006 another year of excellent financial performance.”
