Swift Energy Company (OTCQX:SWTF) has entered into a purchase and sale agreement providing for the company to sell its Lake Washington field in South East Louisiana. This divestiture is part of the company’s plan to focus on the Eagle Ford, where the company has identified over 400 high-quality drilling locations.
Swift expects to see a cash consideration of $40.0 million upon closing of the sale, which is expected in early December 2016, subject to customary closing conditions and adjustments. The assets include approximately 14,000 net acres in Plaquemines Parish, including 23 producing wells, with net sales of approximately 1,160 barrels of oil equivalent per day (97% oil) as of the end of the third quarter 2016. Upon closing of the transaction, Swift will also eliminate the ARO liability associated with this asset from its books and records.
Interim CEO Bob Banks commented, “The net proceeds from this transaction, which will go toward paying down the revolver, will improve our liquidity profile, strengthen our balance sheet, and provide the financial flexibility we need to execute on our 2017 development plans. Additionally, we have identified other smaller monetization opportunities within the portfolio which we will continue to actively pursue.”