Swift Energy Co. is selling its Lake Washington field in southeast Louisiana in order to focus on the Eagle Ford Shale, where it has identified more than 400 drilling locations.
The sale includes about 14,000 net acres in Plaquemines Parish, including 23 producing wells. Net sales were about 1,160 boe/d (97% oil) as of the end of the third quarter. Houston-based Swift said it expects to receive $40 million from the undisclosed buyer. Closing is expected in early December.
"Swift has made several strategic moves this year to actively manage our portfolio and transform the company into a premier Eagle Ford producer, and today's announcement is consistent with that strategy," said interim CEO Bob Banks. "We've had a tremendous amount of success with the development of our assets in South Texas, and this transaction allows us to focus exclusively on our very best rate of return projects.
"The net proceeds from this transaction, which will go toward paying down the revolver, will improve our liquidity profile, strengthen our balance sheet, and provide the financial flexibility we need to execute on our 2017 development plans. Additionally, we have identified other smaller monetization opportunities within the portfolio which we will continue to actively pursue."
Last April, Swift emerged from Chapter 11 bankruptcy protection and closed on a new $320 million senior secured credit facility, while also forming a joint venture and closing on the sale of some conventional oil assets in central Louisiana.