When Swift first came to New Zealand in the late 1990s, explorers often regarded striking gas as the worst outcome for a well in the then low-priced market dominated by the Maui field. At least they could write-off the cost of a dry hole.

Late last week Swift Energy announced record 2003 revenues and production, including significant contributions from its gas-driven New Zealand operations.

Its total US and NZ revenues were US$209 million, with New Zealand now accounting for 36% of corporate production, with 19.4 bcfe produced in 2003, an increase of 25% from the 15.5 bcfe produced in 2002.

New Zealand now accounts for 21% of the company’s total proved reserves, with Kiwi reserves increased 13% to 176 bcfe.

This country’s ever strengthening gas market is graphically illustrated by the fact that gas prices are increasing at a faster rate than the kiwi dollar has been climbing against the Greenback. The Kiwi appreciated 25% against the Greenback during 2003.

Swift Energy New Zealand received an average natural gas price of US$1.83 per thousand cubic feet (Mcf) for 2003 under its long-term contracts, a 38% increase over the US$1.32 received in 2002; while the average price in December 2002 was US$1.40 but had jumped by 54% to US$2.15 last December.

Swift Energy believes the price for its New Zealand gas during the first 2004 quarter will be US$2.15-2.35 and the average for the year, US$2.20-2.40. New Zealand gas prices are fixed contractual ones with major power generators in New Zealand and subject to currency exchange rates.