Indonesia's PGN, Swift Energy Complete US Shale Asset Deal

Swift Energy and Saka Energi Indonesia have closed the earlier announced deal to fully develop 8,300 acres of Fasken area Eagle Ford shale properties owned by Swift Energy in Webb County, Texas, Swift Energy said Tuesday.

The agreement between the two companies was announced in May. As per the deal, Saka Energi Indonesia, a subsidiary of state-owned Perusahaan Gas Negara (PGN), would acquire 36 percent of participating interest in Swift Energy’s shale gas block in Fasken for $175 million.

“Both parties have worked diligently towards the conclusion of this transaction, and we look forward to working alongside Saka to optimize this asset’s value through an advanced technology development program,” Terry Swift, CEO of Swift Energy commented, “This arrangement marks the beginning of a strategic partnership to grow production in the Eagle Ford dry gas window of South Texas.”

Swift will use the part of the proceed to fund accelerated development of its Eagle Ford shale properties.