Swift Energy Company (OTC PINK: SFYW) (the “Company”) and TEXEGY LLC (“Texegy”) today announced that U.S. subsidiaries of the Company and Texegy have entered into a purchase and sale agreement (the “PSA”) providing for the Company to sell to Texegy a 75% share of the Company’s holdings in the South Bearhead Creek Field and Burr Ferry Field areas located in Central Louisiana (the “Properties”). Closing is anticipated to occur on or before March 15, 2016, subject to bankruptcy court approval in the chapter 11 reorganization proceeding filed by the Company today as previously announced, and further subject to customary closing conditions.
On the closing date, the Company and Texegy plan to enter into a joint development agreement and a joint operating agreement (together, the “JV Agreements”) to continue operation and development of the Properties after the closing date. The JV Agreements will result in SV Energy Company, LLC, an affiliate of Texegy, serving as the operator of the Properties, conducting all drilling, completion and production operations. Under the JV Agreements, future development plans will be established by the Company and Texegy.
Chief Executive Officer Terry Swift commented, “We look forward to working alongside Texegy and combining our years of experience and expertise in the region to exploit and enhance the value of these Louisiana assets. This arrangement marks the beginning of a strategic partnership while strengthening our liquidity profile.”
TEXEGY LLC was formed in the fall of 2014 to acquire, operate, and develop producing conventional oil and gas properties in Texas and Louisiana. This acquisition includes oil-weighted properties in the Burr Ferry and the South Bearhead Creek fields in Louisiana.
Michael S Pedrotti, President of TEXEGY said, “This acquisition is part of a series of acquisitions, we intend to conclude in the near future, of similar assets in Texas and Louisiana. We believe that our versatility, straightforwardness and quick response time resulted in a transaction that accomplished the goals of both us and the seller.”
Rajan Ahuja, CEO of TEXEGY said, “These Louisiana assets fit perfectly in our portfolio of producing conventional assets in Texas and Louisiana. We are excited to work along the Swift team to develop this area in an optimum manner.”
About Swift Energy Company
Swift Energy Company, founded in 1979 and headquartered in Houston, engages in developing, exploring, acquiring and operating oil and gas properties, with a focus on oil and natural gas reserves onshore in Texas and Louisiana and in the inland waters of Louisiana.
About Texegy LLC
TEXEGY LLC is an oil and gas company focused on acquiring, developing and operating oil and gas assets in Texas and Louisiana.