The company today said that 2004 production had increased by approximately 10% to 58.3 billion cubic feet equivalent (bcfe), with 42.0 bcfe produced domestically and 16.3 bcfe produced in New Zealand, compared to 53.2 bcfe (33.8 bcfe domestic, 19.4 bcfe New Zealand) in 2003.

Proved reserves at the end of 2004 totalled 800 bcfe, a decrease of 3% from on the 2003 figure of 820 bcfe. This slight reduction was from reduced drilling activity in the Lake Washington area at proved undeveloped locations that helped optimise production in a high-price environment, but which also resulted in smaller additions to proven reserves.

For the fourth quarter of 2004, New Zealand saw a 1% increase in production from the same quarter in 2003 and a 23% increase from the prior quarter in 2004.

However, New Zealand proved reserves declined by 16% during the year - from 176 bcfe to 147 Bcfe - the main reason being Swift’s kiwi 2004 drilling campaign was focused entirely on development drilling for proved undeveloped reserves (PUD) conversion and also a downward revision related to the Tariki and Manutahi sands in the onshore Taranaki Rimu-Kauri field.

Kiwi drilling activity in the last quarter included the Tariki-D1 well, which was completed as a Tariki sand producer, and the Kauri-E7 well, which was completed as a Kauri sand producer and is awaiting fracture stimulation scheduled for the second quarter of this year.

Swift is currently drilling the Kauri-E8A well in the Rimu-Kauri area and the shallow (Miocene-aged) Karaka-A1 well in PEP 38742 further north, as part of Kapuni ammonia-urea plant owner Ballance Agri-Nutrient’s plan to find more gas for its plant.

Investor relations director Scott Espenshade told EnergyReview.Net that

Swift had a US$220-250 million capital expenditure program for 2005, 20% of which would be spent in New Zealand with up to 4 exploration wells drilled in the Taranaki Basin.

“Swift’s guided production growth for future reserves and production growth is 7-12%, with both domestic and New Zealand properties contributing similar growth rates to our production goals.”

Company president and CEO Terry Swift concluded: “Swift Energy’s 2004 financial results are some of the best in our history, driven by outstanding profit margins.”