Swift buys Shell assets

By Phil Boeyen, ShareChat Business News Editor

Tuesday 4th December 2001

Texas-based Swift Energy will pay US$55 million to acquire interests in a number of Taranaki oil and gas fields from Shell.

Shell is selling its 97% interest in the Tariki, Ahuroa, Waihapa and Ngaere fields - collectively known as TAWN - in line with a Commerce Commission ruling relating to its purchase of Fletcher Energy.

"The assets were acquired by Shell through the acquisition of Fletcher Challenge Energy earlier this year," says Shell MD, Dr Lloyd Taylor.

"At that time, Shell gave an undertaking to the New Zealand Commerce Commission to divest certain FCE assets, including the TAWN properties."

Dr Taylor says in addition to a cash payment, Shell has also received from Swift the rights to acquire interests in several prospective oil and gas properties in New Zealand.

"We anticipate that most of the staff associated with the management of the TAWN fields will be absorbed into Swift's operations in New Zealand. Shell and Swift are working with staff to ensure fair treatment of all staff affected by this sale."

Swift president, Terry Swift, says his company is extremely pleased to be adding the strategic assets to its New Zealand operations.

"Swift will not only be adding proved producing properties and immediate increases in cash flow, but more importantly adding significant facilities and infrastructure that can enhance the value of our Rimu and Kauri areas and potentially accelerate their development.

"We will own and operate substantial additional oil and natural gas processing capacity, and by building pipelines from the Rimu/Kauri area to the Waihapa Production Station, we will be able to export crude oil at New Plymouth and transport natural gas to electrical generation facilities through our own pipelines."

The sale is expected to close by January 2002, with the hand over of assets soon after.

Swift Energy is based in Houston and is an independent oil and gas company with a focus on onshore natural gas reserves in the United States and onshore oil and natural gas reserves in New Zealand. It is listed on the New York Stock Exchange and has annual revenue of around US$190 million.

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