Houston-based Swift Energy Co.'s 2011 capital budget includes an accelerated drilling program to increase production and reserves, primarily targeting its liquids-rich acreage in the Eagle Ford Shale and the Olmos Sands in South Texas, the company said.
Swift projected capital spending next year of $430 million to $450 million, production growth of 25-30% and reserves growth of 15-20%.
"Based upon results of 2010 operations through the first three quarters, we are announcing a preliminary capital budget for 2011, which includes acceleration of our drilling program in the liquids-rich Eagle Ford shale and rich gas Olmos Sands in South Texas," said CEO Terry Swift.
"We anticipate spending between 75% and 80% of our 2011 capital budget in South Texas. Much of this will be focused on drilling oil and condensate development wells on acreage that was proved up in 2010. The remainder of our 2011 capital program will be directed towards oil production in Southeast Louisiana and high-rate Austin Chalk oil and natural gas development wells in our Central Louisiana/East Texas core area."
Swift's focus is on oil and natural gas reserves onshore in Louisiana and Texas and in the inland waters of Louisiana. The company has made an effort of late to reduce its exposure to the tight availability of drilling services by signing long-term contracts for rigs in South Texas (see Daily GPI, Sept. 27).