Swift Energy New Zealand was granted a Petroleum Mining Permit 38151 earlier this week by the Government's Crown Minerals unit for the development of the Rimu discovery within Petroleum Exploration Permit 38719.

The 5524-acre permit allows SENZ to fully develop its Rimu discovery for a primary term of 30-years, with the company already planning to develop up to three additional drilling pads, each one able to handle multiple wells, within the PMP.

Current plans call for a total of nine additional wells to be drilled within the mining permit, including one gas reinjection well, with initial development targeting the Upper Tariki sandstone, the Lower Tariki sandstone and the Upper Rimu limestone.

Capital expenditure requirement for this additional development is expected to be approximately $US80 million over the course of the project.

"Swift Energy is extremely pleased to see our Rimu discovery has been awarded a petroleum mining permit, which will allow us to begin the

development phase of this meaningful, long-term project. Production will begin from this area with the start up of the Rimu production station later this quarter," said company president and CEO, Mr Terry Swift, from Houston.

"This signifies another significant step for our company as we continue to develop our permits in New Zealand. As we move forward with the continued delineation of the Rimu-Kauri area, we hope to be able to expand the area covered by this mining permit, and in particular, to eventually include the Kauri area immediately to the south."

Crown Minerals petroleum business manager Clyde Bennett said Swift's rapid progression from being a new entrant in New Zealand to a company with significant producing assets in less than six years was a great example of the prospectivity and business opportunities available in New Zealand.