Swift, Petrohawk eye Texas gas shale

HOUSTON, Nov. 3 (UPI) -- Swift Energy Co. and Petrohawk Energy Corp. announced an agreement to develop and operate a 26,000-acre site for gas shale in Texas.

Swift Energy said it received $26 million in cash with Petrohawk funding $13 million for the first 12 months of the joint venture. Both companies will develop and operate Swift Energy's share of Eagle Ford shale acreage in McMullen County, Texas.

Appraisal drilling for the gas shale is planned to begin by the end of the year with accelerations planned for 2010.

Petrohawk said its preliminary tests of a portion of the East Ford shale deposit uncovered a gas play with a thickness of 250 feet. Initial production at its first well yielded 9.1 million cubic feet of natural gas equivalent per day.

Petrohawk serves as the operator during the drilling and completion of the East Ford gas shale play. Swift Energy will take over as the operator when the wells go into production.