Houston-based Swift Energy Co. and PT Saka Energi Indonesia have closed on an agreement to develop 8,300 acres of Fasken area Eagle Ford Shale properties owned by Swift in Webb County, TX. Swift sold a 36% full interest in the properties to Saka for $175 million cash, with $125 million (subject to adjustments) paid at closing and $50 million to be paid over time to carry a portion of Swift's field development costs. Swift's net proceeds will be used initially to reduce debt and ultimately to fund accelerated development of its Eagle Ford properties. "This arrangement marks the beginning of a strategic partnership to grow production in the Eagle Ford dry gas window of South Texas," said Swift CEO Terry Swift. Saka is the upstream oil and gas subsidiary of PT Perusahaan Gas Negara (Persero) Tbk (PGN), Indonesia's largest natural gas transportation and distribution company.
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