Swift Energy Updates Operational Progress Following Hurricane Katrina

HOUSTON, September 7, 2005 – Swift Energy Company (NYSE: SFY) announced today continuation of its initial physical assessments of its coastal Louisiana properties, including the Lake Washington Field in Plaquemines Parish, Bay de Chene Field in Jefferson and Lafourche Parishes, and Cote Blanche Island Field in St. Mary’s Parish. Production at Cote Blanche Island Field was restored as of Wednesday, August 30, to pre-hurricane levels. Work crews were mobilized to Lake Washington and Bay de Chene last week to inspect the facilities and infrastructure in both fields. Based on these preliminary inspections of facilities, damage observed to date appears to be minimal, but these early observations are based only on brief visual inspections of the facilities. Swift anticipates that a more detailed inspection of the equipment and facilities will result in additional items needing to be repaired or replaced.

Swift Energy has separate teams making further assessments of electrical systems, instrumentation, integrity of flow lines, substructure of platforms and navigation hazards. No assessment can be made at this time of total damages to the Lake Washington and Bay de Chene facilities and infrastructure, or how long it will take to resume production or drilling and completion operations, as well as pre-hurricane planned facility enhancements. The Company currently anticipates that it may take some time before it can make an accurate assessment of what production level will be possible in the third quarter and what adjustments to its full year production guidance estimates will be necessary.

Swift Energy is also investigating the availability of market outlets for its products once production is resumed. The crude oil pipeline Swift Energy accesses in Lake Washington may be able to take crude oil production by the time that Lake Washington production is restored, but this cannot be confirmed at present. Barge transportation has been restricted until coastal shipping lanes have been reestablished and cleared for commercial activities, but this is now beginning to happen. Routes into and out of Lake Washington and Bay de Chene will need to be resurveyed though to confirm safe passage. The natural gas pipeline that handles Swift Energy’s natural gas production in Lake Washington is not currently operating under force majeure provisions. Swift Energy will continue to monitor this very dynamic situation and other factors beyond its control.

The first actions taken by Swift Energy were focused on assisting the relocation of its affected workers to temporary housing. This was followed by steps to establish a new shore base and communication to the fields, which is limited at this time. Although Swift Energy’s original shore base in Port Sulphur remained intact following Hurricane Katrina, road access is currently unavailable. Crew quarters and support barges either have been or will be placed in the Lake Washington area to support Swift Energy’s field workers and contractors.

Swift Energy’s current plan of action is to reestablish production at Lake Washington and resume drilling and completion operations in the area. A contracted drilling rig will be returned to the field, as well as both completion/workover rigs, as soon as this is possible. One of two contracted drilling rigs that remained in the Lake Washington Field during the storm requires limited repair work due to water damage and will return to the yard for repair as soon as navigation is reopened. After thorough inspection, repairs and testing, Swift Energy will reestablish production in both fields and complete the facility upgrades at Lake Washington. These activities are being pursued concurrently with due regard to increased safety and environmental concerns as a result of the known and unknown damages inflicted by Hurricane Katrina.

Swift Energy Company, founded in 1979 and headquartered in Houston, engages in developing, exploring, acquiring and operating oil and gas properties, with a focus on onshore and inland waters oil and natural gas reserves in Louisiana and Texas and oil and natural gas reserves in New Zealand. Over the Company’s 25-year history, Swift Energy has consistently shown long-term growth in its proved oil and gas reserves, production and cash flow through a disciplined program of acquisitions and drilling, while maintaining a strong financial position.

This material includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections, or other statements other than statements of historical fact, are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Certain risks and uncertainties inherent in the Company’s business are set forth in the filings of the Company with the Securities and Exchange Commission.

 


 


Company Contact:   
Paul Vincent, Director   
Finance & Investor Relations   
(281) 874-2700   
(800) 777-2412   

 

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