Swift says its net income for the full year doubled compared to the 2003 result of US$34.3 million before a change in accounting principles. Before giving effect to early debt retirement expenses of US$9.5 million ($6.1 million in 2003) full-year net income had increased 118% to $74.6 million. Net income for the fourth 2004 quarter increased 182% to a record US$26.8 million.
Company president and CEO Terry Swift said that during 2005 Swift was to be evaluating strategic exploration potential in two growth areas, southern Louisiana and New Zealand, with four or five NZ exploration prospects being drilled in 2005.
NZ gas prices continue to climb, with the NZ dollar’s appreciation against the US currency. Swift Energy’s average 2004 gas price was US$2.38 per mmscf, a 30% increase on the US$1.83 received in 2003. Also the company’s McKee blend crude oil sold for an average US$42.15 per barrel, while its natural gas liquids yielded an average price of US$17.96 per barrel for the year 2004.
Swift Energy’s proved NZ reserves fell by 16% during 2004 to 147 bcf as the company focused on development drilling for proved undeveloped reserves conversion and had an unspecified downward reserves revision relating to the onshore Taranaki Rimu-Kauri field.
Swift has also confirmed that it was plugging and abandoning the shallow (Miocene-aged) Karaka-A1 well in PEP 38742, which had been drilled as part of Kapuni ammonia-urea plant owner Ballance Agri-Nutrient’s plan to find more gas for its plant. But Swift Energy was still drilling the Kauri-E8 well development well.
