Houston-headquartered Swift Energy today announced net income of US$14.6 million for the first quarter of 2004, up 39% on that recorded a year ago. Increased domestic production (up 35% to 10.4 bcfe) more than compensated for the 25% drop (to 3.9bcfe) in New Zealand production, enabling the company to post the overall better net income.
The lower New Zealand production was expected, however, as increased use of hydroelectricity contributed to a short-term reduction in gas market demand, which was expected to continue at least through the second quarter of 2004.
However, the buoyant kiwi energy scene and strengthening gas market are reflected in average aggregate New Zealand prices which increased by 36% to US$2.93 Mcfe in the last 12 months.
Gas increased in price by 40%, from US$1.62 Mcfe to US$2.27 Mcfe, edging toward the US$3 predicted by Shell executives Tim Warren and Pete Jeans at the 2002 NZ Petroleum Conference.
Swift completed the Kauri-E3 and E4 wells in south onshore Taranaki during the quarter, with the E4 well tested at various rates, the most recent being approximately 4.0 mmscf/d and 400 bopd of crude oil-condensate.
The company said this was encouraging as the Tariki sand at the E4 well was approximately 1800 feet up-dip and over 3.5 miles from the initial Tariki sand discovery at the Rimu-A1 well in late 1999.
Sustained production testing was expected to start at Kauri-E4 within the next few weeks. Fracture stimulation of the Kauri sands at the E3 well was expected to start after the E4 production program had finished. The first well in the 2004 shallow Manutahi sands drilling program was scheduled to start later this month.
