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Swift Energy to Acquire Oil and Natural Gas Interests in South Texas

Posted on: Friday, 29 August 2008, 09:00 CDT

Swift Energy, which is engaged in oil and gas exploration and production, has signed an agreement to purchase oil and natural gas interests in Dimmit County in south Texas for $47 million from Crimson Energy Partners, a privately held company.

The interests in Crimson's Briscoe 'A' lease and wells are located on 5,140 acres adjacent to existing Swift Energy production in its Cotulla area. The acquisition is expected to close within 30 days, with an effective date of May 1, 2008. The total acquisition purchase price is subject to post-closing adjustments.

Pursuant to the terms of the agreement, Swift Energy will acquire a 100% working interest in all of Crimson's operated wells in the lease and will serve as operator of the property. The purchase price will be funded with bank borrowings under the company's bank credit facility.

The Briscoe 'A' lease has 34 producing well bores with an additional 23 locations identified. Production is from the Olmos and San Miguel formations at depths ranging from 4,500 to 5,000 feet.

Terry Swift, chairman and CEO of Swift Energy, said: "This strategic acquisition of property adjacent to our current operations further expands the company's presence and production base in our Cotulla operating area, which now covers 89,000 gross acres."

Source: Datamonitor

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