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Oil producer in Houston announces annual budget cut

Xinhua, January 14, 2015 Adjust font size:

Swift Energy Co., a U.S. oil and natural producer based in Houston, announced Tuesday a 70-75 percent cut of its annual budget as the world oil prices continue the downward trend since last year.

The company, which also has operations in the U.S. state of Louisiana, said it expects to invest between 100 million U.S. dollars to 125 million U.S. dollars this year from its properties in Texas' Eagle Ford Shale and elsewhere.

It also expects to produce 11.2 to 11.4 million barrels of oil equivalent this year, about 7 to 8 percent lower than its original output plans.

"We continue to work with our vendors and suppliers to reduce service costs and are taking steps to materially reduce field level operating and corporate overhead expenses," Chief Executive Officer (CEO) Terry Swift said in a statement.

The energy company is only the latest oil producer in the country that decides to reduce spending because of falling crude prices. In early trading Tuesday, U.S. oil price fell 1.28 U.S. dollars to 44.79 U.S. dollars a barrel.

The firm is worth 118 million U.S. dollars on the stock market Tuesday, and its shares have reduced 79 percent since June 20 last year to 2.69 U.S. dollars at the close Monday on the New York Stock Exchange.

In December, U.S. Oil giants like ConocoPhillips and Continental Resources Inc. announced their annual budget cuts by 20 percent and 40 percent respectively. Enditem