Swift Energy (SFY) released the rate of return that the company expects to achieve on wells drilled into the oil window of the Eagle Ford Shale. The rate of return is sensitive to the commodity prices used by the company.
Swift Energy estimates that wells here will earn a return of 74%, assuming a price of $90 per barrel for oil and $5 per Mcf for natural gas. This return falls to 49% if a price of $80 per barrel for oil and $4 per Mcf for natural gas is used. The worst case scenario for rate of return that Swift Energy uses is 29% under a price scenario of $70 per barrel for oil and $3 per Mcf for natural gas.
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