Swift Energy Co. in early February received approval from a U.S. bankruptcy judge to sell its oil and gas assets in Louisiana.
The company last December had announced it had reached a deal in which Texegy LLC would purchase a 75 percent share of Swift Energy’s holdings in the South Bearhead Creek Field and Burr Ferry Field areas located in central Louisiana.
Swift Energy and Texegy said they will enter into a joint development agreement and a joint operating agreement to continue operation and development of the properties after the closing. The agreements will result in SV Energy Co., an affiliate of Texegy, serving as the operator of the properties, conducting all drilling, completion and production operations. Under the JV Agreements, future development plans will be established by Swift Energy and Texegy.
“We look forward to working alongside Texegy and combining our years of experience and expertise in the region to exploit and enhance the value of these Louisiana assets,” Swift Energy CEO Terry Swift said in a statement. “This arrangement marks the beginning of a strategic partnership while strengthening our liquidity profile.”
Texegy was formed in 2014 to acquire, operate and develop producing conventional oil and gas properties in Texas and Louisiana.
Michael S Pedrotti, President of TEXEGY said: “This acquisition is part of a series of acquisitions, we intend to conclude in the near future, of similar assets in Texas and Louisiana. We believe that our versatility, straightforwardness and quick response time resulted in a transaction that accomplished the goals of both us and the seller.”