US subsidiaries of Swift Energy Co. (OTC PINK: SFYW) and TEXEGY LLC (Texegy) have entered into a purchase and sale agreement (PSA) providing for Swift to sell to Texegy a 75% share of Swift’s holdings in the South Bearhead Creek Field and Burr Ferry Field areas located in central Louisiana.
Closing is anticipated to occur on or before March 15, subject to bankruptcy court approval in the Chapter 11 reorganization proceeding filed by Swift Energy on Dec. 31, 2015, and further subject to customary closing conditions.
On the closing date, Swift and Texegy plan to enter into a joint venture (JV) development agreement and a joint operating agreement to continue operation and development of the properties after the closing date. The JV agreements will result in SV Energy Co. 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 Swift and Texegy.