Swift Energy enter agreement with Meritage Midstream Services

Swift Energy Company announced today that it has entered into a long term agreement for natural gas gathering and treating services in South Texas with Meritage Midstream Services’ subsidiary, Eagle Ford Escondido Gathering. This agreement will involve the construction of a new pipeline to the company’s Fasken operating area in Webb County, Texas. Swift Energy will have up to 40 million ft³/d of gas of firm capacity on this new pipeline. The company currently expects all required construction to be completed by 1 December, 2010.

Swift Energy has agreed to a long term sales contract with Kinder Morgan Texas Pipeline LLC that is indexed to market and will be delivered to a new connection with the Kinder Morgan system.

Swift Energy has also extended contracts for two horizontal rigs currently drilling for the company by 12 and 15 months from their current terms due to expire on 31 December, 2010. With these contracts in place, the company will enter 2011 with three South Texas horizontal drilling rigs under long term contracts.

“These separate agreements for dedicated gathering and drilling services further reduce Swift Energy’s exposure to the continuing tightness of oilfield services and gathering outlets facing operators in South Texas,” said Terry Swift, Swift Energy’s Chief Executive Officer. “We expect an increase in operating activity in 2011 and have taken numerous steps to ensure that we can drill, complete and produce our wells without interruption due to third party service constraints.”

Read the article online at: https://www.worldpipelines.com/business-news/24092010/swift_energy_enter_agreement_with_meritage_midstream_services/