Swift Energy to sell Lake Washington field to focus on Eagle Ford
Swift Energy Company has entered into a purchase and sale agreement to sell its Lake Washington field in south-east Louisiana.
It is a strategic divestiture that will help the company to focus on the Eagle ford trend, which has more than 400 high-quality drilling locations.
The transaction is finalised at a cash consideration of $40m upon closing.
Subject to customary approvals and conditions, the deal is expected to close by early December.
The Lake Washington field comprises nearly 14,000 net acres in Plaquemines Parish with 23 producing wells.
The company reported net sales of nearly 1,160 barrels of oil equivalent per day in the third quarter of this year.
With the closing of this transaction, Swift Energy will also overcome the ARO liability associated with this project from its records.
Swift Energy interim CEO Bob Banks said: “Swift has made several strategic moves this year to actively manage our portfolio and transform the company into a premier Eagle Ford producer, and today’s announcement is consistent with that strategy.
“We’ve had a tremendous amount of success with the development of our assets in South Texas, and this transaction allows us to focus exclusively on our very best rate of return projects.
“The net proceeds from this transaction, which will go toward paying down the revolver, will improve our liquidity profile, strengthen our balance sheet, and provide the financial flexibility we need to execute on our 2017 development plans.
“Additionally, we have identified other smaller monetisation opportunities within the portfolio, which we will continue to actively pursue.”
Founded in 1979, Swift Energy Company explores, develops and operates oil and gas properties especially focusing on the Eagle Ford trend of South Texas.