Independent Swift Energy boosts capital spending 15 percent to $150 million

Petroleum News Houston staff

Houston independent Swift Energy has increased its 2003 capital budget 15 percent to about $150 million to help pay for projects, the company said July 8.

The additional $20 million in capital specifically will go toward development drilling, facility upgrades and initial 3-D seismic work in the Lake Washington field in Plaquemines Parish, La., and additional drilling and exploitation activity in New Zealand, the company said.

The increase in the capital budget is supported by the recent operational successes and higher than anticipated cash flow in 2003, both domestically and in New Zealand, the company said.

The increase in the capital budget will be used in part to increase the facility capacity at Lake Washington to about 20,000 gross barrels per day, the company said. Facility upgrades are continuing on schedule in the field and should be completed during the fourth quarter, the company added.

The increased capital budget also enables the company to drill a total of 60 to 70 wells in Lake Washington during 2003, or about 10 more wells than previously reported, Swift said. Additionally, the company said it is considering shooting 3-D seismic over a portion of the field.