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Crown Minerals awarded Swift Energy New Zealand the 973.2 square kilometre PEP 38495 licences late last month for the usual initial five-year term.
The permit is completely offshore, in contrast to an earlier one which was mainly onshore but included some shallow water acreage, principally so SENZ could evaluate if the Rimu-Kauri field prospects extended offshore, Swift investor relations director Scott Espenshade told EnergyReview.net from Houston.
“We believe the permit area is prospective for hydrocarbons and we plan to review the current geologic and geophysical data to see if the permit merits further capital investment,” Espenshade said.
Swift international president Bruce Vincent said the permit included the Kaheru prospect, but Kaheru was not yet a ready-to-drill target.
“Initially, we plan to integrate all of the data from this permit with our other data, and then analyse it for prospectivity," Vincent said.
"Following that, we would hope to conduct what we think would be a 3D seismic acquisition and drill a well at a later date if warranted.”
Fletcher Challenge Energy surrendered a permit that included Kaheru several years ago without drilling a single well and the last consortium to test the area was the Shell NZ-Todd Energy joint venture with an unsuccessful deviated well drilled almost three years ago from onshore.
Meanwhile Swift Energy has announced record net income of US$25.7 million for the first quarter of 2005 – partly due to increased New Zealand gas production.
Swift Energy today said the first 2005 quarterly result was a 76% increase on the US$14.6 million posted for the first quarter of 2004. Net cash provided by operating activities increased 63% to US$64.7 million, compared to US$39.6 million.
Overall production increased 9% to 15.5 billion cubic feet equivalent (bcfe) from the 14.3 bcfe produced in the first quarter of 2004. But this latest figure was down 2% from the 15.9 bcfe produced in the fourth quarter of 2004.
First quarter 2005 production included 11.0 bcfe of domestic production, a 5% increase, and 4.5 bcfe of Kiwi production, an 18% increase, on first quarter 2004. The increases were due to higher gas production from the Kauri field in onshore Taranaki and from the Lake Washington area in the US.
"Swift Energy Company has just completed another successful quarter, and as we continue to implement our strategic plan, we should realise fundamental growth and value for our shareholders,” said company CEO Terry Swift.
“The dynamic and significantly improved commodity environment is rewarding companies with year-over-year production growth.
“In New Zealand, reserve growth opportunities will be tested with the drill bit, as we begin our Tarata Thrust exploratory drilling program with our partner, Mighty River Power."
Major NZ electricity player Mighty River Power in March joined forces with Swift Energy to drill at least three deep gas wells this year in Swift’s onshore Taranaki licences and to investigate other gas-related opportunities.
The first well is due to drilled into the Goss prospect - a possible deep gas horizon below the currently producing Waihapa oil field – after Greymouth Petroleum has finished drilling Turangi-1 in the more northerly PEP 38762 and released the Parker Drilling Rig 246.