Swift Energy Co. is back on its feet from bankruptcy, marshalling its resources for the Eagle Ford and shedding noncore assets as it aims for a top spot among natural gas producers in Texas.

Swift’s subsidiary, Swift Energy Operating LLC, agreed to sell its Lake Washington Field in southeast Louisiana for $40 million, the company said Nov. 21. Hilcorp subsidiary Hilcorp Energy I LP agreed to purchase the leasehold in Plaquemines Parish, La., and expects to close the deal in December.

After closing, Swift will eliminate an asset retirement obligation liability associated with the leasehold, the company said.

Swift acquired the Lake Washington assets in 2001 for $30.5 million. At the time, the field was estimated to have 7.1 million barrels (MMbbl) of oil and 3.7 billion cubic feet (Bcf) of gas.

Since Swift’s shift to horizontal drilling in South Texas, the company has deferred drilling deep wells of about 16,000 ft and instead is conducting production optimization using shallow-to- medium wells.

Bob Banks, Swift’s interim CEO, said the company has made several strategic moves to actively manage its portfolio and transform into a premier Eagle Ford producer. The company exited from Chapter 11 bankruptcy in April 2016.

“We’ve had a tremendous amount of success with the development of our assets in South Texas, and this transaction allows us to focus exclusively on our very best rate of return projects,” Banks said.

The company is actively pursuing the sale of other, smaller assets as it trims its portfolio.

In April and September, the company sold assets in Central Louisiana and South Texas for roughly $1 million in net proceeds.

Net proceeds from the Lake Washington transaction will pay down the company’s revolver and improve liquidity. The deal also provides “the financial flexibility we need to execute on our 2017 development plans,” Banks said.

This divestiture is a significant step toward Swift becoming a more focused Eagle Ford player. The company has identified more than 400 high-quality drilling locations.

Ready, Go

The company’s goal to be a top natural gas producer has progressed despite bankruptcy. Swift was among the top 25 largest Texas gas producer in 2014 (21st) and 2015 (18th).

Swift’s 2015 gas volumes were 78.6 Bcf. So far in 2016, the company’s median production puts it on track to finish at about 76 Bcf, according to Texas Railroad Commission data.

As of September 2015, the company’s Eagle Ford assets were concentrated in Webb, McMullen, La Salle and Live Oak counties, Texas.

The company has lately concentrated its operations on the Fasken Field, which Swift said has the highest EUR gas wells in the Eagle Ford. The company said 28 consecutive wells are expected to beat EURs of 12 Bcf.

Darren Barbee can be reached at dbarbee@hartenergy.com.