looking forward to the next agm, page-20

twinpeaks

firstly, post up graphs of its peers price per acre valuations for the efs.. demonstrate the value of the efs in that manner...

secondly, explain in detail the new acreages in east texas, even mention the next well that devon is drilling horizontally into the same play, previously i noted 2 wells there, and last week a third permit appeared in the roundhouse play..

while they are at it, also explain how big devon is... and how they have been consolidating and tightening their belt and limiting exploration, yet are now drilling exploration horizontals into the same play we will be..

wouldnt that imact somewhat on the plays credibility???

thirdly, announce wells being drilled in the weeks before they spud, not announce in quarterlies and only react to posts here about their ops on hot copper..

further... explain the demerger plans more, dates and times..

another issue falling heavily on texon is the dismal performance of its competitor swift..

because they simply screw wells up time and time again, the efs is being give abysmal valuations

as some may well know, terry swift came clean his disastrous completions in his Q3 earning conference..

terry swift came clean on his disaster multiple completions off that one pad south of the texon peeler well





http://seekingalpha.com/article/970161-swift-energy-company-s-ceo-discusses-q3-2012-results-earnings-call-transcript

importantly he comes clean on the dismal completions there and the disastrous fracs, bob banks is left to explain it in detail.


South Texas Operations
In the Company’s South Texas core area, twelve operated wells were completed during the third quarter. In McMullen County, six Eagle Ford wells and one Olmos well were completed. In LaSalle County, five Eagle Ford wells were completed.
Initial Production Test Rates of South Texas Horizontal Wells
Completed in Third Quarter 2012
(Operated unless otherwise noted)
Well Name County/Formation Target Oil
(Bbls/d) Natural Gas Liquids
(Bbls/d) Residual Natural Gas
(MMcf/d) Barrels of Oil Equivalent Choke Setting Pressure
(psi)
Carden EF 7H LaSalle – Eagle Ford 110 236 2.6 779 16/64” 3,435
Baetz A EF 1H LaSalle – Eagle Ford 356 197 1.6 819 18/64” 3,538
Baetz A EF 2H LaSalle – Eagle Ford 468 259 2.1 1,076 12/64” 3,563
Alderman Ranch EF 4H LaSalle – Eagle Ford 153 273 2.3 810 18/64” 2,650
Alderman Ranch EF 5H LaSalle – Eagle Ford 135 260 2.2 759 18/64” 2,437
Hayes EF 2H McMullen – Eagle Ford 632 52 0.4 755 12/64” 3,500
Henry EF 1H McMullen – Eagle Ford 544 56 0.5 678 14/64” 2,625
Henry EF 2H McMullen – Eagle Ford 520 47 0.4 631 14/64” 2,500
SMR EF 6H McMullen – Eagle Ford 1,097 54 0.5 1,226 16/64” 2,407
SMR OL 4H McMullen – Olmos 614 136 0.9 897 16/64” 2,894
SMR EF 7H McMullen – Eagle Ford 912 51 0.4 1,033 16/64” 2,011
SMR EF 8H McMullen – Eagle Ford 837 31 0.3 911 16/64” 1,791
Further, three additional wells drilled (but not completed) in LaSalle County during the third quarter were drilled to test 60 acre downspacing assumptions. These wells have now been completed with initial production rates of each above 1,000 Boe, producing approximately 60% crude oil and natural gas liquids. Further downspacing tests will increase the Company’s crude oil and liquids rich drilling inventory.








Terry Swift

In South Texas the initial test rates for our first four well pad met our expectations. But lower than expected associated gas required instillation of artificial lift much sooner than previously anticipated. These lower than expected gas to oil ratios required us to conduct operations which required significant production down time as the proxy cemetery of these wells to one another required all of them to be shut-in to conduct tubing and gas lift installation operations. We also had some temporary facility issues with this four well pad operation.
These operational complexities with our first four well pad zipper frac design in Northern McMullen County have let us to reduce our production forecast. Bob will discuss this particular situation, which we believe is isolated to this particular set of wells a bit later on in our presentation.
Recently in the fourth quarter, we completed the McClarity 1-H and 2-H well in this same area. These wells have demonstrated significantly higher gas to oil ratios and experienced stabilized flow test rates above 700,000 barrels of oil per day and 1 million cubic feet of gas per day. This type of result is in line with our expectations for this area and further suggests a unique event with our four well pads SMR in that area.
As we developed the Eagle Ford and try new techniques to become more efficient, we do continue to find variations in fluid characteristics, rock properties and operating conditions that present both challenges and opportunities, as we go through our Eagle Ford development.



Bob Banks
Thanks, Bruce. At the Lake Washington field during the quarter, we completed 4 wells and performed 14 production optimization projects, which include sliding sleeve shift changes, gas lift enhancements, chock changes and returning shut-in wells to production. These types of operations are the backbone of our current base production management program in the field. One recompletion in particular on the LL&E number 5 will also referred to as the Jelly Bowl prospect, tested at rates above 1500 barrels of oil per day.
This type of result highlights the opportunities that still exists in Lake Washington in addition to the new drilling activity. We did drill three wells during the third quarter at Lake Washington and we will maintain a one rig program throughout the end of the year and on into next year in this area. We completed one well at Lake Washington during the third quarter, the CM 423, which was drilled to a measured depth of 9,016 feet, encountered 202 feet of true vertical pay and tested 912 barrels of oil per day and 0.3 million cubic feet of gas per day on a 22/64” choke.
Over in the Central Louisiana, East Texas area in the Burr Ferry field, the non-operated GASRS 34-1 well was completed in the Austin Chalk during the quarter. Initial production rates of this well were 840 barrels of oil per day and 5.1 million cubic feet of gas per day with flowing tubing pressure of 2,520 psi on a 30/64-inch choke.
A second non-operated well, the Forestar 18-1 was also completed. Initial production test rates of this well were 1,056 barrels of oil per day and 3 million cubic feet of gas per day with flowing tubing pressure of 4,000 psi on a 30/64-inch choke. We remain encouraged about the strong well results from this area and continue to believe the Austin Chalk project area has the potential to be a meaningful growth area for us. One non-operated well is currently being drilled in the Burr Ferry area and we expect to participate in at least 3 more wells in this area next year.
Moving on to South Texas, 12 Eagle Ford horizontal wells were completed during the third quarter. In the morning’s press release, we included a table highlighting test data from these completions. Swift Energy continues to adjust our completion and production techniques to optimize production. In addition, we continue to benefit from more efficient drilling and completion times as we moved fast appraisal mode into development mode in some areas.
As Terry mentioned earlier, we did experienced some unexpected delays during the completion of a four well pad project in the SMR area in the North McMullen County. The first delay was related to the simultaneous fracing operations themselves where faulting in the area caused inference between these closed proximity wells resulting in sticking some tools down hole.
The second and more significant delay was related to the unexpectedly low GORs of the Eagle Ford wells compared to offset SMR Eagle Ford locations, as well as the greater more than AWP area of McMullen County. Most wells in these areas have GORs of 1,000 to 2,000 to 1 these wells had GORs of about 600 to 1 that’s requiring us to move much more quickly than planned to our tubing installation and gas lift operations.
Due to the closed proximity of the wells on this four well pad, we were require to shut-in all wells on the pad from most of October to conduct these operations, plus delaying production from this key area. While the lower GORs of these wells were below original forecast, we did achieve expected initial oil production rates and still expect these wells to perform well once where our oil and gas lift and have to been installed.
As a result of the lessons learned, we have modified our pad fracing operations to insure that we do not cause this type of pressure interference, in our pad wells in the future, especially in areas with non-pulving. A good example of the changes we made can be found in the next two wells in this area that we’ve recently completed. The McClarity 1-H and 2-H were recently completed and are currently flowing back at an average stabilized rate of 708 barrels of oil per day and 1.3 million cubic feet of gas per day.
The GORs of these wells are much more in line with our model expectations throughout more than AWP area. As we’ve pointed out, we have reduced our South Texas drilling activity to three rigs down from the six, primarily to better to align our spending levels with cash flows. This reduced pace of drilling has allowed our asset team to spend more time evaluating existing wells and developing production optimization programs based on historical production data.
One of the results of this evaluation work has been to increase the amount of tubing installations we are conducting on the in-service wells, while we have to shut-in a well for several base to perform this activity, it better manages the reservoir and results in flatter production and pressure declines for the long-term. This operation is really important for all of our lower GOR wells.
While we’ve elected to maintain a slower pace of drilling in South Texas, we have also taken steps to increase our inventory through downspacing. In Artesia wells, we’ve recently completed that the base 1-H, 2-H and 3-H all on a 60 acre spacing design. These wells all tested at rates above 1,000 barrels of oil equivalent per day and was greater than 55% liquids.
I believe our acreage in LaSalle County may prove to be our highest value acreage. We’re seeing our lowest drilling costs in this area while drilling liquids rich wells with good pressure support and higher GORs, while we need to continue to test our downspacing assumptions, we are thrilled with that yearly results here.
Terry indicated earlier a commitment to expanding our operational horizon through strategic growth in exploration. This is a critical component to our future and we worked very hard to put in place a strategic growth framework, which will support intelligent risk taking and afford a steady diet of growth opportunity for Swift Energy. In 2013 alone, we will test at least two opportunities in different areas where the company control significant acreage and has a low entry costs. We’re also evaluating a third opportunity with meaningful running room but this play hasn’t yet been sufficiently de-risk.
Early in the year, we will drill a horizontal Wilcox test in our South Bearhead Creek field in Beauregard Parish, Louisiana. We have already drilled a number of strong vertical wells in this area giving us confident in our ability to utilize our horizontal drilling and multi stage frank technology in this prime position of the trend.
Additionally, we have observed high quality offset operators significantly improving their results through the use of horizontal drilling technology. In a second play area, our land organization has done an incredible job of putting together a large acreage position in the Four Corners areas of Colorado that is perspective for Niobrara development. Their work as well as the subsequent technical evaluations we’ve conducted have put us in a position to drill at least one test well in this area next year.
All of these growth opportunities exists in regions with extensive histories of oil and gas production and represents the types of opportunities we will continue to develop through our strategic growth framework. It’s safe to say that although we expect to have less South Texas drilling activity next year, we will be busier than we have ever been. We are in a growth mode at Swift Energy and continue to build an asset base, an opportunity set unlike any that company has ever seen.
With that, I thank you for your attention this morning and I’m going to turn it back to Terry to recap.





lastly twinpeaks... if it were me, i would explain the region issues and poor performance in better detail, and just because swift failed in a big way, they demonstrated that by reacting for the first time they made some staggering reversals of form with the 2 (misspelled) McClarity wells off a the same pad..

btw those wells sit next to our southern patches of efs acreages, making that an exciting region imho!!


others feel free to add their 10 cents..

still think the market has the efs all wrong, and imho texon needs a investor relations manager bigtime..

all imho and dyor..