Investment relations director Scott Espenshade and exploration and development vice-president Tom Schmidt told the 2003 Louisiana Energy Conference today that Swift Energy had found replacement reserves in excess of 280% in its Texas, Louisiana and New Zealand operations, with an average finding cost of US$1.25 per thousand cubic feet equivalent (mcfe) over the past five years.

New Zealand's ever-strengthening gas market _ with a major supply shortfall, possible from 2005 _ meant many opportunities for Swift Energy.

Significant upgrades, in proved and possible reserves, were probable in the Rimu, Kauri, Tawa, Matai prospects, as well as deep-gas potential at the more northern onshore Taranaki field of Waihapa.

Swift Energy New Zealand received an average price of US$1.87 per mcf for its gas in the third quarter of 2003, up 46% from US$1.28 a year earlier and wholesale gas prices are expected to continue to climb to US$3-4.

Further opportunities were possible from the planned development of the Pohokura and Kupe gas-condensate fields _ due to come onstream in 2006 and 2007 respectively.

Swift Energy was likely to make further sales of uncontracted gas, at least until the two fields came onstream, and the most likely landing point for Kupe products was very near Swift's Rimu production station near the south Taranaki coast.

Swift was also looking at linking its Rimu and under-utilised Waihapa production stations via a pipeline, which would enable transportation of Kupe liquids to Port Taranaki, New Plymouth, and the gas further north to Genesis Power's existing and planned Huntly power stations.

Genesis is the major Kupe stakeholder and is currently negotiating to appoint an operator, rumoured to be either Santos or Origin, early next year to develop Kupe.

"New Zealand is a nice little entity in itself," Espenshade concluded.