What's happening here.

  1. 1,317 Posts.
    BLo has sold all of its revenue producing NZ assets to Swift Energy for what likes a very good deal. But the question is why? Is this a company running out of cash or merely getting ready for the development of Huinga/Makino finds? I supect they think they can use the money more effectively on developing its current assets (NZ,China, USA, PNG etc) but whatever it is BLO will have some explaining to do to the market next week. News release follows:

    Swift Energy to Buy Out Last Third Party Owner in Rimu/Kauri and TAWN Permits in New Zealand

    HOUSTON--(BUSINESS WIRE)--Aug. 30, 2002--Swift Energy Company (NYSE:SFY)(PCX:SFY) announced today that Swift Energy New Zealand Limited ("SENZ") signed a definitive agreement with two subsidiaries of Bligh Oil & Minerals N.L. (ASE:BLO) to acquire all of Bligh's interests in the SENZ operated Rimu/Kauri permits and TAWN permits and facilities in New Zealand. Upon closing of this transaction, SENZ will own 100% of the Rimu/Kauri exploration and mining permits and 100% of the TAWN mining licenses, increasing its interest from its current 95% in the Rimu/Kauri license area and 96.76% in the TAWN license areas. The purchase price consists of 300,000 shares of Swift Energy Company common stock and cash of approximately $2,750,000, subject to effective date adjustments. Closing is expected to take place within the next six weeks, dependent upon regulatory clearance in New Zealand and normal closing conditions.

    SENZ has agreed to acquire the 5% interest held by Bligh's subsidiary, Marabella Enterprises Limited, in the Swift-operated petroleum exploration permit 38719 along with the 5% interest in the Rimu petroleum mining permit 38151, where the Rimu and Kauri discoveries are located. Additionally, SENZ agreed to acquire the 3.24% interest held by Bligh's subsidiary, Bligh Oil & Minerals (NZ) Limited, in the four TAWN petroleum mining licenses ("PML"), which consist of the Tariki Field (PML#38138), Auhora Field (PML#38139), Waihapa Field (PML#38140) and Ngaere Field (PML#38141), plus their respective interests in two processing plants and associated pipelines in which SENZ already has a majority interest.

    Terry Swift, president and CEO of Swift Energy noted, "We are particularly pleased that we have been able to consolidate all of the interests in both the Rimu/Kauri area and the TAWN fields. Our long term view is that the fields and infrastructure at Rimu/Kauri and TAWN are integrally connected, and this consolidated position will allow us to more effectively develop these areas as well as market a portion of the New Zealand interests to appropriate partners."

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