I'm sure the technical team know their stuff, but for what its worth..
So the 'lost circulation' in a rotary rig happens when a section of pipe is added and they tongs break/make a connection, during the time a pump is shut-down the fluid in the drill string can disappear into the large fractures, and without the fluid the differential pressure can get the string stuck, once this occurs you are in trouble.
There are other options if you have the larger casing size you can run in with a coil, which has no spearate sections of threaded pipe as its one continuous string, the string is pushed in from a reel and there is no shutting down of pumps and therefore no lost circulation from differential pressure is eliminated. They run a special tool that allows gas/oil flow to surface while in the reservoir during completion to reduce drilling mud from entering the 'skin' of the producing formation which can deplete perfomance if not done correctly.
Some of the Waihapa wells have had lost circulation in the deeper carbonates for above reason. I'm sure Tag and their gov't advisors know the drilling past and the field history, but the reservoir is highly fractured and the challenges when pushing horizontal with a rotary have the above risk versus UBD w/ coil which can have advantages in the cases where its the best fit. Whatever they are running and whatever they are learning the rock should tell a story once they get the data from the tools. If they have to re-attemp or call in other specialists then its doubtful they will say much until the facts are known and the decisions are made.
Hope the team gets a decent well and moves the needle into their intentions or goals.
a) Douglas-1 recorded oil shows in the upper Tikorangi section, before encountering a series of
and caused drilling operations to terminate. This from 2nd paragraph of
b) underbalanced drilling (UBD) services control the inflow of reservoir fluids into the wellbore while you drill. This technique minimizes near-wellbore damage, increases well productivity, and reduces drilling problems—such as differential sticking and low rates of penetration—especially in horizontal wells.
c) Fletcher Energy took over Southern Petroleum in 1995, and was in turn bought by Royal Dutch Shell and Apache Corporation. Swift Energy NZ bought Southern Petroleum.
For what its worth... the below historical prices, numbers, sales figures can be helpful to extract what would happen if the USD was to fall not rise and if the numbers were to be projected out 4-5 years in a scenario where the right direction started to net positive capital that they could budget withto expand their reserves..
c) 4 Dec, 2001
Swift Energy New Zealand has agreed to buy Southern Petroleum for $US55 million ($133.7 million) in cash as part of its expansion in the Taranaki gas fields.
Houston-based Swift Energy president Terry Swift said the purchase of Southern Petroleum by its New Zealand subsidiary, from owner Shell NZ, included interests in four onshore oil and gas fields, hydro-carbon processing facilities, and pipelines connecting fields and facilities with each other and export terminals.
Mr Swift said in a statement on the company's website that the company was pleased to add "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 would be able to export crude oil at New Plymouth and transport natural gas to electrical generation facilities through our own pipelines," Mr Swift said.
The assets include the Tawn properties (Tariki, Ahuroa, Waihapa and Ngaere fields) which have 17 wells, with total net production for December estimated at 31.5 million cubic feet equivalent per day. The natural gas, which makes up 74 per cent of the total 65.0 billion cubic feet equivalent reserves, has been sold under long-term contract to Contact Energy.
Swift NZ has also entered into agreements with Shell NZ relating to oil storage facilities, hydrocarbon transport and crude oil marketing, as well as strategic agreements for future exploration and development.
The agreement to buy Southern Petroleum became effective from November 16. The company will become a wholly owned subsidiary of Swift NZ in up to 60 days, subject to Shell obtaining the waiver by a preferential rights owner.
The transaction is also subject to approval from New Zealand regulatory authorities.
Swift NZ currently holds interest in four exploration permits, including a 90 per cent interest in the permit where the Rimu and Kauri discoveries are located.
.
9 Jul, 2003
Swift said in a statement on its website that part of the increased budget of US$150 million ($252.4 million) would go towards additional drilling and exploitation activity in the onshore Taranaki Rimu/Kauri and Tawn (Tariki, Ahuroa, Waihapa and Ngaere) areas.
"This increase in the capital budget is supported by the recent operational successes and higher than anticipated cashflow in 2003
Swift Energy New Zealand Holdings Limited, a registered company, was started on 19 Nov 2001. 9429036702275 is the New Zealand Business Number it was issued. The company has been run by 13 director
Swift Energy has executed definitive agreements with certain subsidiaries of Origin Energy Limited to sell certain of Swift Energy's New Zealand assets for a minimum of $87.8 million effective December 1, 2007, representing the major portion of the assets held. Additional agreements for the sale of the remainder of Swift Energy’s New Zealand assets are being negotiated and are anticipated to be in place in early 2008.
Terry Swift, Chairman and CEO, commented "After a thorough review of the opportunities open to Swift Energy in its domestic and foreign core operating areas, the Board of Directors and Swift Energy’s management have decided to exit our New Zealand operations. We believe this decision, which will result in a non-cash book loss, is in the best interest of our shareholders moving forward, allowing Swift Energy to concentrate our human and financial resources domestically where we have developed significant opportunities in Louisiana and Texas."
Assuming all transactions are completed, Swift Energy expects to realize total cash proceeds of between $100 and $110 million from its New Zealand asset disposition effort. Upon closing of the transactions expected to take place in the first quarter of 2008, the sale of Swift Energy's New Zealand assets is expected to result in a non-cash book write-down of approximately $115 to $125 million ($3.70 to $4.00 per diluted share). The net proceeds from the sale will be used to reduce the outstanding amounts of Swift Energy's borrowings under its bank line of credit, which currently has approximately $200 million outstanding.
Appropriate approvals and consents by numerous parties, including the New Zealand government are required prior to closing. Under the agreement with Origin Energy, Swift Energy will also retain the right to certain non-operating future interests based on the occurrence of specific future events. As part of the agreement, Origin Energy will be taking over the Swift Energy New Zealand office space leases in Wellington and New Plymouth and will be extending offers of employment to the current New Zealand staff.
Swift Energy Agrees to Sale of Remaining New Zealand Assets
Swift Energy
|
Tuesday, May 06, 2008
Swift Energy Company announced that one of its subsidiaries, Swift Energy New Zealand, has agreed to sell the remaining portion of its assets to an undisclosed party for $15 million, which will be paid over 30 months after closing the transaction. The future payments are secured by unconditional letters of credit. Upon closing, a non-cash gain of approximately $12.8 million will be recorded, which represents the present value of these payments net of approximately $0.5 million of book value. The transaction is subject to certain New Zealand government approvals and is expected to close within the next few months.
The close of the previously announced sale of the majority of Swift Energy Company's New Zealand assets is expected to occur during the second quarter of 2008.
Swift Energy Company, founded in 1979 and headquartered in Houston, engages in developing, exploring, acquiring and operating oil and gas properties, with a focus on onshore and inland waters oil and natural gas reserves in Louisiana and Texas. Over the Company's 28-year history, Swift Energy has shown long-term growth in its proved oil and gas reserves, production and cash flow through a disciplined program of acquisitions and drilling, while maintaining a strong financial position.
Swift Energy Tests Goss and Trapper Wells
New Zealand Crown Minerals
|
Friday, August 25, 2006
Swift Energy Company has begun testing the Goss and Trapper wells its TAWN fields.
Both of these Tarata Thrust project exploration projects, which Swift Energy is operator of, are being carried out in a 50% joint partnership with Auckland based energy company Mighty River Power.
Swift Energy said in its report that intermediate depth objectives were being tested at both wells. However the deeper objectives in both wells were deemed non-commercial.
The Trapper prospect is in the Ngaere field (PML 38141) and Goss in the Waihapa field (PML 38140).
The company has two rigs operating in New Zealand, one drilling a Waihapa prospect targeting the Tikorangi limestone (Waihapa 4 ST#1) and the other the Kowhai exploration well targeting several deep horizons.
Swift Energy says in the report that it was unsuccessful with one development well that targeted the Kauri sands in the Kauri field PMP 38155 in the second quarter of 2006.
The company's production from its New Zealand operations in the second quarter was 3.2 billion cubic feet equivalent (Bcfe), a decrease of 20% from production in the same quarter of 2005 and down 17% from levels in the previous quarter due to reduced crude oil liftings in the second quarter 2006, scheduled facility maintenance and natural production declines.
Swift Energy says its New Zealand natural gas realized an average price of US$2.83 per Mcf for in the second quarter of 2006, a 7% decrease from the US$3.05 per Mcf received in the comparable 2005 period, and its natural gas liquids contracts yielded an average price of US$18.14 per barrel for the second quarter 2006 compared to US$19.30 per barrel in the second quarter of 2005 or a 6% decrease.
The report says the lower New Zealand natural gas and NGL prices were a function of being denominated in New Zealand dollars, which have been declining in 2006 against the U.S. dollar and do not reflect weakening gas prices.
The company's McKee blend crude oil sold for an average US$73.90 per barrel compared to US$50.82 per barrel in the same period in 2005.
New Zealand: Swift brings new Waihapa oil well onstream
06 Dec 2006
Swift Energy has successfully drilled and is now producing oil from the Tikorangi limestone formation in its Waihapa field in onshore Taranaki. The Houston-based Swift Energy Corporation's says in the September quarter report, that
it drilled two wells targeting the Tikorangi formation in the TAWN area, of which the Waihapa Mining Licence PML 38140 forms a part. Swift Energy says it has completed the Waihapa H-1 well, which is currently on production after being spudded on 26 June. The other well
Waihapa 4ST was suspended for mechanical reasons until 2007. The company also reported that the Kowhai A-1 exploration well was drilled on PEP 38742 in the north onshore Taranaki was unsuccessful. The well was drilled with joint venture partner Ballance Agri-Nutrients Ltd, which operates the gas, fed ammonia urea plant at Kapuni. Plans are underway to
complete the Goss well in the Tikorangi formation for testing and evaluation. The Trapper A-1 well, which had previously been plugged back from non-commercial deeper horizons, was planned to be completed in the Tikorangi formation but is now being plugged and abandoned due to mechanical reasons. Both the Goss and Trapper wells were drilled with partner Might River Power as part of the
Tarata Thrust Project. Production from Swift Energy's New Zealand fields was 3.5 billion cubic feet equivalent (Bcfe) for the third quarter of 2006, a 19% decrease compared to production in the same period of 2005. Swift's US production over the latest quarter was up 67% over the hurricane-affected 2005 quarter. Third quarter 2006 New Zealand production of 3.5 Bcfe decreased 19% from production in the same quarter in 2005 but increased 12% from levels in the prior quarter due to additional crude oil liftings occurring in the third quarter 2006. As a result of our domestic production increases, 71% of Swift Energy's third quarter 2006 production was liquid hydrocarbons, consisting of 64% crude oil and 7% natural gas liquids. The company's New Zealand based McKee blend crude oil sold for an average US$70.49 per barrel during the third quarter of 2006 compared to US$61.23 per barrel in the same period in 2005. Swift Energy had an average realised price of US$3.04 per Mcf for its New Zealand natural gas in the third quarter of 2006, a 1% decrease from the US$3.08 per Mcf received in the comparable 2005 period. NGL contracts yielded an average price of US$20.09 per barrel for the third quarter 2006 compared to $19.50 per barrel in the third quarter of 2005, or a 3% increase. Source: Swift Energy and Crown Minerals
13 June 2008
Origin and Contact finalise NZ$110 million New Zealand oil and gas deal
Origin Energy and Contact Energy today announced the completion of a NZ$110
million acquisition of Swift Energy’s New Zealand oil and gas operations.
The completion of the acquisition sees Origin acquire:
• Two oil and gas producing areas in Taranaki – the Tariki, Ahuroa, Waihapa and
Ngaere (TAWN) and Rimu-Kauri fields;
• The Rimu and Waihapa production stations;
• Oil and gas transmission pipelines from Waihapa to New Plymouth;
• Two offshore Taranaki exploration permits; and
• An inventory of equipment and supplies.
Under a separate agreement between Contact and Origin, Contact has purchased the right to own and develop the Ahuroa gas field as an underground gas storage facility and purchase the remaining gas and LPG reserves in the Ahuroa reservoir.