Swift Energy To Sell Nine Fields In Louisiana, Texas And Alabama

To buy interests in 6 fields in S LA, 2 in TX & 1 in AL, gaining 10.6 MMCFE/d, 92.2 BCFE proved.

Swift Energy Co., Houston, (NYSE: SFY) plans to sell its interests in six fields in South Louisiana, two in Texas and one in Alabama to an undisclosed private oil and gas company for approximately $53.5 million.

Production from the fields averaged 10.6 million cubic feet of gas equivalent per day during the first quarter of 2011. Aggregate proved reserves at year-end 2010 were 92.2 billion cubic feet equivalent (65% gas, 19% proved developed producing).

Swift Energy will use the proceeds to fund a portion of its 2011 capex.

The deal is expected to close by mid-October. The effective date is Aug 1.

Wells Fargo Securities estimates the deal value at $5,050 per thousand cubic feet of gas equivalent per day and $0.58 per thousand cubic feet equivalent proved.

Wells Fargo Securities senior analyst Michael Hall says, “We projected Swift to outspend by $103 million, or 27% of 2011E cash flow? this transaction is expected to reduce excess spending to approximately $49 million net, or 13% of 2011E cash flow.”