Swift Energy (SFY) held an analyst meeting for the investment community and released updated information on its operations in the Eagle Ford Shale. The company has 75,000 net acres under lease in the play, including 20,000 net acres in the oil window.
Swift Energy said that the average Eagle Ford Shale well in the oil window produces 77% oil, 16% dry gas and 7% natural gas liquids. The company is using two different models for wells drilled into the Eagle Ford Shale based on a lateral length of 4,000 feet or 6,000 feet.
Swift Energy said that the average well with a 6,000 foot lateral costs $9 million, and has an initial production rate of 1,286 barrels of oil and 1.714 million cubic feet of natural gas per day. The estimated ultimate recovery (EUR) of these wells is 286,000 barrels of oil and 410 million cubic feet of natural gas.
Swift Energy said that wells with a 4,000 foot lateral cost an average of $7 million, and has an initial production rate of 900 barrels of oil and 1.2 million cubic feet of natural gas per day. The EUR of these wells is 200,000 barrels of oil and 310 million cubic feet of natural gas.
Swift Energy plans to drill 26 wells into the Eagle Ford Shale over the next three years, with 2 wells in 2011, 11 in 2012 and 13 in 2013.