Houston-headquartered Swift Energy today said it still expected its 2003 total production to be 53.0-56.0 billion cubic feet equivalent (bcfe), despite transportation capacity constraints at its Lake Washington field meaning US production was now expected to be 34.0-37.0 bcfe, down from the previous estimate of 36.5-39.0 bcfe. This represented a decrease of about 5.4-6.8%.

New Zealand production, however, was continuing to increase, bolstered by higher output from the Tariki, Ahuroa, Waihapa and Ngaere (Tawn) fields. Kiwi production was expected to be 19.0 - 20.0 bcfe, up from the previous estimate of 16.5-18.0 bcfe. This represented an increase of about 11-15%.

Production from the Tawn fields averaged above 50.0 MMcf/d equivalent for the first quarter of 2003 and was expected to produce near these levels for the remainder of the year, except for an approximate one-week period of downtime in the second quarter for routine maintenance.

Production from the more southern Rimu-Kauri area averaged approximately 6.0 MMcf/d equivalent during the first quarter of 2003, as expected. The Rimu production station would also be down for one week in the second quarter for required preventive maintenance.

Swift Energy said that during the first quarter of 2003 it had fracture stimulated the Kauri-A4 well and that, while continuing to clean up, the well had flowed up to 4.8 MMcf/d of gas and 202 barrels of condensate, with a negligible amount of water, through a 25/64-inch choke with 1,258 pounds per square inch of flowing tubing pressure. The well was currently shut-in undergoing bottom hole pressure build-up tests.

Plans were underway to drill at least one more additional test well targeting the shallow Kauri sands, which are found at depths around 2880-3150m, and work was progressing on a pipeline to connect the Kauri-A4 well to the Rimu production station to begin long-term production, which should start from September.

Swift Energy also said that the Kauri-F1 well, testing the shallower Manutahi sands, which are found at depths of approximately 1100-1200m, was successfully drilled and completed in the first quarter 2003. The well was currently undergoing production testing and had flowed naturally over the last three weeks, although there were plans for a pumping unit to be installed within the next two months or so. Swift had also injected carbon dioxide into Tariki sands at the Rimu-A2A well and was preparing to production test this well.

Company president and chief executive Terry Swift said that although further testing was needed, Swift believed both the Kauri and Manutahi sands presented good opportunities for future development.