The latest acquisitions leave Swift Energy with total control of the Rimu-Kauri discoveries in south Taranaki and the Tariki, Ahuroa, Waihapa and Ngaere (Tawn) fields in central Taranaki, as well as the larger exploration licence PEP 38719 containing the Rimu-Kauri oil finds.
This is Swift's second such acquisition in less than a year and further proof of the Houston-headquartered company's intent and commitment to the land of the long white cloud. Swift Energy earlier this year acquired all of the New Zealand assets of Canadian company Antrim Oil and Gas, which also related to a 5% stake in PEP 38719, as well as a 7.5% interest in the more northern PEP 38716 licence containing the likely Huinga oil discovery.
The purchase price for the BOM transactions, which are expected to be finalised before the end of October, is $US2.75 million plus 300,000 shares of Swift Energy common stock. The purchase for the Antrim deal was $US530,000 plus 220,000 Swift shares.
Bligh subsidiary Marabella Enterprises sold the 5% stakes in PEP 38719 and mining licence PML 38151, while subsidiary Bligh Oil & Minerals (NZ) (which was half-owned by Wellington-based Todd Energy) sold the 3.24% stake in the Tawn licences.
Company president Terry Swift said his firm was particularly pleased to consolidate its interests in the Rimu-Kauri area and the Tawn fields. "Our long term view is that the fields and infrastructure at Rimu-Kauri and Tawn are integrally connected, and this consolidated position will allow us to more effectively develop these areas, as well as market a portion of the New Zealand interests to appropriate partners."
Swift Energy paid Shell about $US54.4 million for the lion's share of the Tawn fields late last year.
Industry commentators say the deals allow Swift Energy the freedom to accelerate any development options for the Rimu-Kauri and Tawn properties, while giving Bligh immediate access to capital, which could be used in the development of that firm's Bayou Choctaw project in Louisiana, USA.
"Minority parties are a pain at the best of times; parties that only hold a very small percentage are even worse. Bligh needs the money and Swift doesn't need any minority aggravation. Swift will be looking to farm out to parties willing to come in for around a 25 percent minimum," said one commentator.
BOM chief executive Brent Emmett said the transaction, to be effective from April 1 this year, provided certainty of funding for Bligh over the medium term for existing exploration and new business opportunities, without diluting shareholder interest. The value of cash and shares would total about $A12.5 million, though analysts thought the value could exceed $A16 million.
“We believe the cash to be much more important than the strategic value of the assets being sold. They are minority interests in non-operated properties over which Bligh has little influence,” said Emmett.
However, on-going access arrangements to the Tawn facilities was strategically important to Bligh, as it still saw New Zealand having the potential to become a core operating arena for the company.
“We have significant interests in permits that cover the Tariki thrust play which has indicated great promise at the Huinga and Makino prospects. These are interests that are material, over which we have considerable control and which hold the potential to have real impact on the value of the company.”
With that in mind, Bligh and Swift had already agreed on arrangements for on-going access to the Tawn facilities (an oil production station at Waihapa and gas processing plant at Tariki), Emmett added.
