Swift Energy announces JV to develop Fasken Eagle Ford acreage
HOUSTON -- Swift Energy Company and PT Saka Energi Indonesia (Saka) have announced that U.S. subsidiaries of Swift Energy and Saka have executed definitive agreements to fully develop approximately 8,300 acres of Fasken area Eagle Ford shale properties owned by Swift Energy in Webb County, Texas.
The executed agreements provide for Saka to pay Swift Energy $175 million in total cash consideration to acquire a 36% full participating interest in Swift Energy’s Fasken properties.
The consideration is comprised of $125 million in cash to be paid at closing and $50 million in cash to be paid by Saka to carry a portion of Swift Energy’s future field development costs.
Swift Energy will continue to serve as operator of the Fasken properties, conducting all drilling, completion and production operations, with development plans for the field to be mutually agreed upon by Swift Energy and Saka as provided for in the definitive agreements.
“Saka Energi is the perfect partner to jointly develop this acreage alongside Swift Energy,” Terry Swift, CEO of Swift Energy commented, “Saka recognizes the opportunity in the Fasken area to create value through highly productive natural gas drilling and is aligned with Swift Energy in its assessment of the valuation of our Fasken acreage.”