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Acquisitions and Dispositions
12 Months Ended
Dec. 31, 2015
Business Combinations [Abstract]  
Acquisitions and Dispositions
Acquisitions and Dispositions

On July 15, 2014, we closed our transaction with Saka Energi to fully develop 8,300 acres of Fasken area Eagle Ford shale properties owned by Swift Energy in Webb County, Texas, with an effective date of January 1, 2014. Swift Energy sold a 36% full participating interest in the Fasken properties to Saka Energi for $175 million in total cash consideration, with $125 million paid at closing (subject to adjustments for the interim period between the effective date and the closing date) and $50 million in cash to be paid by Saka Energi over time to carry a portion of Swift Energy's field development costs incurred after the effective date. As of December 31, 2015, approximately $5.5 million remained of Saka Energi's original $50 million carry obligation. At closing, the Company received approximately $147 million in proceeds, including a $12.5 million deposit received during the prior quarter which was held in an escrow account until the closing date, as well as adjustments for the interim period between the effective date and the closing date. The proceeds initially were used to reduce our outstanding borrowings on our credit facility which were partially offset by additional borrowings against the credit facility during the second half of the year to fund development expenditures. No gain or loss was recognized for the transaction as the proceeds were applied to the full cost pool.

On December 31, 2015, the Company, entered into a purchase and sale agreement with Texegy LLC (Texegy) to sell a full participating 75% working interest of Swift Energy’s position in the South Bearhead Creek Field and Burr Ferry Field located in Allen, Avoyelles, Vernon, Sabine and Beauregard Parishes in central Louisiana. The Bankruptcy Court approved the sale on February 2, 2016. To date, Swift has received two cash deposits aggregating $4.9 million from Texegy, the second of which was made upon Bankruptcy Court approval of the sale on February 2, 2016. The purchase agreement provides for Texegy to pay Swift Energy approximately $49.0 million in cash consideration, which is subject to closing adjustments and adjustments for interim operations between January 1, 2016 and the closing date. Upon closing, which the purchase and sale agreement provides will occur on or prior to March 15, 2016 unless a later date is agreed to by both parties, Swift will retain approximately $13.0 million of the closing proceeds (subject to the same adjustments), with the balance to be paid to the Company’s first-lien secured lenders under the Company’s credit facility. The properties being sold represent approximately 5% of the company's total reserves as of December 31, 2015.

In addition to paying for its share of costs, Texegy has agreed to carry a portion of the Company’s field development costs, which are limited to the Company's 25% share of all costs for the drilling of two wells to casing point in the South Bearhead Creek Field. On the closing date, Swift Energy and Texegy plan to enter into a joint development agreement and a joint operating agreement (together, the “JV Agreements”) to continue operation and development of the Properties with a Texegy affiliate serving as the operator of the Properties, that will conduct all drilling, completion and production operations. Under the JV Agreements, future development plans for the field will be mutually agreed upon by the Company and Texegy.