Saka Energi in US shale deal
Wednesday, May 7 2014 - 12:02 AM WIB
US firm Swift Energy Company and Indonesia?s PT Saka Energi Indonesia announced on Tuesday that they have executed definitive agreements to fully develop approximately 8,300 acres of Fasken area Eagle Ford shale properties owned by Swift Energy in Webb County, Texas. Closing is anticipated on or about June 30, 2014, subject to normal closing conditions.
The executed agreements, effective January 1, 2014, provide for Saka to pay Swift Energy US$175 million in total cash to acquire a 36% full participating interest in Swift Energy?s Fasken properties. The consideration is comprised of $125 million in cash to be paid at closing and $50 million in cash to be paid by Saka to carry a portion of Swift Energy?s future field development costs.
Swift Energy will continue to serve as operator of the Fasken properties, conducting all drilling, completion and production operations, with development plans for the field to be mutually agreed upon by Swift Energy and Saka as provided for in the definitive agreements.
J.P. Morgan Securities LLC acted as financial advisor to Swift Energy in this transaction.
?Saka Energi is the perfect partner to jointly develop this acreage alongside Swift Energy,? Terry Swift, CEO of Swift Energy commented. ?Saka recognizes the opportunity in the Fasken area to create value through highly productive natural gas drilling and is aligned with Swift Energy in its assessment of the valuation of our Fasken acreage. Both parties are committed to rapidly realize the full value of this asset through an aggressive, disciplined development program.
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 oil and natural gas reserves onshore in Texas and in the inland waters of Louisiana.
Saka Energi was formed in 2011, as the upstream oil and gas subsidiary of PT Perusahaan Gas Negara (Persero) Tbk (PGN), Indonesia?s largest natural gas transportation and distribution company, which is listed on the Indonesian Stock Exchange (IDX).