Swift Energy Co. has made a long-term agreement for gas gathering and treating services in South Texas with Meritage Midstream Services subsidiary Eagle Ford Escondido Gathering.

The agreement involves construction of a pipeline to the company's Fasken operating area in Webb County, TX. Swift Energy will have up to 40 MMcf/d firm capacity on the new pipeline. Construction is expected to be completed by December.

Swift Energy has agreed to a long-term sales contract with Kinder Morgan Texas Pipeline LLC that is indexed to market; gas will be delivered to a new connection with the Kinder Morgan system.

The producer also extended contracts for two horizontal rigs currently drilling for the company by 12 and 15 months from their current terms due to expire Dec. 31. With these contracts in place, the company will enter 2011 with three South Texas horizontal drilling rigs under long-term contracts.

"These separate agreements for dedicated gathering and drilling services further reduce Swift Energy's exposure to the continuing tightness of oilfield services and gathering outlets facing operators in South Texas," said CEO Terry Swift. "We expect an increase in operating activity in 2011 and have taken numerous steps to ensure that we can drill, complete and produce our wells without interruption due to third party service constraints."

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