WRAPUP 2-Swift Energy, Petroquest post losses on writedowns

* Swift Q4 adjusted EPS beats estimates

* PetroQuest Q4 adjusted EPS misses estimates

* Swift sees '09 production to fall by 10-15 pct from '08

* PetroQuest says to reduce drilling program

* Swift shrs down 5 pct, PetroQuest shrs down 10 pct (Recasts, adds details, analyst comments)

By Hezron Selvi

BANGALORE, Feb 19 (Reuters) - Independent oil and gas explorers Swift Energy Co (SFY.N) and PetroQuest Energy Inc (PQ.N) posted quarterly losses due to writedowns resulting from the steep fall in oil and gas prices, and warned of further cuts in drilling and production for 2009.

Other bigger energy companies, including ConocoPhillips (COP.N), have also recorded large charges in the fourth quarter as they adjusted the book value of their assets at year-end to account for a more than 50 percent drop in crude oil prices and weakness in global equity markets.

"Due to the challenging commodity price environment, we have made the strategic decision to reduce our drilling program and operate during 2009 below internally generated cash flow," PetroQuest Chief Executive Charles Goodson said.

On a conference call with analysts, PetroQuest's finance chief, Todd Zehnder, said there probably had been about a 10 percent to 15 percent decline in general oilfield service costs across the board.

However, he said that another 15 percent to 20 percent decline in service costs was needed to increase drilling activity, given the current commodity price environment.

Oil prices have tumbled more than $110 a barrel and gas prices are down 70 percent from the peaks hit last year as the economic downturn has spread to all regions of the world, cutting energy consumption.

Swift Energy also said that it plans to balance its capital expenditures and cash flow for 2009.

The company is targeting a 75 percent drop in 2009 capital expenses, while it expects production during the year to decline about 10 percent to 15 percent from a year ago.

"Swift is taking a cautious stance to its 2009 drilling program, with no operated rigs running at this time until oilservice costs decline enough to reflect the current lower commodity price environment - a strategy we wish more of our companies would follow," Raymond James analyst Kevin Smith said.

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