Swift Energy Reports on Current Impact from Hurricane Gustav
Swift Energy Company reported that an initial airplane fly-over of our coastal Louisiana properties is currently being coordinated to assess the impact of Hurricane Gustav. As previously announced on Thursday, Swift Energy began implementing standard shut-down procedures in its coastal Louisiana properties due to weather risks from then approaching Tropical Storm Gustav. With the subsequent strengthening and path of the storm, Swift Energy shut in all fields in its South Louisiana area, moved all drilling rigs to safe harbor, and all personnel were safely evacuated by early afternoon on Sunday, August 31.
According to the National Hurricane Center, Hurricane Gustav made landfall Monday morning, September 1, 2008, as a Category 2 Hurricane, to the south of Houma, Louisiana, about 70 miles southwest of New Orleans and about 100 miles southeast of Lafayette, taking the eye of the storm approximately 35 miles west / southwest of our Bay de Chene Field in Jefferson and Lafourche Parishes and approximately 50 miles west / southwest of our Lake Washington Field in Plaquemines Parish.
Production from these fields and Swift Energy’s other fields in the South Louisiana area will remain shut-in until it can be determined that a field can safely be returned to operation. A full inspection is planned as soon as personnel can safely re-enter each field and physically inspect all the properties and facilities. No assessment can be made at this time of actual damages, or how long it will take to restart production.
Based upon the extent of any damage in the region, factors beyond Swift Energy’s control may also affect the production restart. These items may include the condition of pipelines and processing plants operated by third parties, as well as other third party services and infrastructure.
Swift Energy Company carries replacement property insurance for its facilities and shore base, which has standard deductibles. Swift Energy does not have any obligations related to product warrants, delivery agreements or financial hedges, which are triggered or impacted by this temporary shut-in of production. Swift Energy is also making arrangements to immediately assist its personnel who have been personally affected by Hurricane Gustav.
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.
