Swift Energy has announced that one of its subsidiaries, Swift Energy New Zealand, has agreed to sell the remaining portion of its assets to an undisclosed party for $15 million, which will be paid over 30 months after closing the transaction.
The future payments are secured by unconditional letters of credit. Upon closing, a non-cash gain of approximately $12.8 million will be recorded, which represents the present value of these payments net of approximately $0.5 million of book value.
The transaction is subject to certain New Zealand government approvals and is expected to close within the next few months. The close of the previously announced sale of the majority of Swift Energy Company’s New Zealand assets is expected to occur during the second quarter of 2008.