Production
Swift Energy produced 10.6 million barrels of oil equivalent (“MMBoe”) from continuing operations (domestically), which is a 12% increase compared to 2006 production of 9.4 MMBoe from continuing operations. Domestic production for the fourth quarter 2007 increased 7% to 2.8 MMBoe compared to the fourth quarter of 2006 domestic production of 2.6 MMBoe. In Swift Energy’s discontinued operations in New Zealand, the Company recorded production of 1.4 MMBoe for 2007 compared to 2.3 MMBoe for 2006, a 38% decline. In the fourth quarter 2007, discontinued operations had production of 0.3 MMBoe, which was a decline of 38% from comparable production in the same quarter in 2006. Swift Energy’s total production in 2007 increased approximately 3% to 12.0 MMBoe, compared to 2006 total production of 11.7 MMBoe.
Swift Energy achieved record production in 2006, which increased approximately 18% to 70.2 billion cubic feet equivalent (Bcfe), with 56.7 Bcfe produced domestically and 13.5 Bcfe produced in New Zealand. This level of production compares to 2005 production of 59.6 Bcfe (43.0 Bcfe domestic and 16.5 Bcfe New Zealand). Production for the fourth quarter 2006 totaled 18.6 Bcfe, an increase of 27% compared to production in the fourth quarter 2005. Domestic production increased 42% to 15.6 Bcfe compared to the hurricane affected fourth quarter 2005, while New Zealand production of 3.0 Bcfe declined 19% from the same quarter in 2005.
Reserves
Swift Energy reported a record year-end 2007 reserves total of 150.1 million barrels of oil equivalent (“MMboe”) (900.7 Billion cubic feet equivalent of natural gas (“Bcfe”)), an increase of 10 percent over year-end 2006 levels. Swift Energy’s 2007 total production increased to 12.0 MMboe (72.0 Bcfe), also a record, and a 3% increase over 2006 levels, with approximately 10.6 MMboe (63.7 Bcfe) produced domestically and 1.4 MMboe (8.3 Bcfe) produced in New Zealand.
Swift Energy’s year-end 2007 reserves consist of 133.8 MMboe (802.7 Bcfe) of domestic reserves and 16.3 MMboe (98.0 Bcfe) of New Zealand reserves. This compares to 2006 year-end reserves of 118.4 MMboe (710.5 Bcfe) domestically and 17.7 MMboe (106.4 bcfe) in New Zealand. Swift Energy’s year-end 2007 domestic proved reserves were valued at approximately $3.8 billion of present value discounted at 10% per year (PV-10), compared to $2.4 billion for the Company’s 2006 year-end domestic reserves. Domestic pricing for reserves and PV-10 calculations utilized $93.24 per barrel for crude oil and $6.65 per Mcfe for natural gas in 2007, compared to $60.07 per barrel and $5.84 per Mcfe at year-end 2006.
Swift Energy’s domestic reserves are 48% proved developed and are comprised 44% of crude oil, 43% of natural gas and 13% of natural gas liquids.