1993 ANNUAL REPORT 

International Initiatives

In keeping with its long-term strategic growth plans, Swift Energy Company moved in 1993 to take advantage of opportunities arising in the oil and natural gas industry in Russia and Venezuela.

In a Participation Agreement signed with Senega, a Russian Federation joint stock company headquartered in Novi Urengoi, Swift agreed to provide technical and managerial assistance for the development and production of oil and natural gas reserves in two fields located within 20 miles of the massive Urengoi Field in western Siberia. Swift will also provide financial support with an initial capital exposure of up to $5 million.

The two fields, the Samburg and the Evo-Yakha fields in the Yamalo-Nenetsky area, are approximately 1,500 miles northeast of Moscow. Data from 60 exploratory wells drilled in the fields in past years indicate substantial oil and gas deposits which are yet to be developed. As the development occurs, Swift expects the estimates of proven reserves to increase significantly.

Swift will receive a net profits interest of at least 5% from the sale of oil and gas from the fields. The Company also hopes to realize long-term profitability from provisions that may allow Swift to participate in future Senega projects.

Also in 1993, Swift Energy—through a consortium of its wholly owned subsidiary, Swift Energy de Venezuela, C.A., and a minority interest holder—submitted a bid under the Venezuelan Marginal Oil Field Reactivation Program II for the reactivation of the Quiriquire Unit located in northwestern Venezuela. Swift was not awarded the bid; however, the Company continues negotiations for potential projects in the country. The government of Venezuela is inviting foreign companies with technical expertise to participate in the development and delivery of its large oil and gas deposits, and Swift believes that attractive opportunities remain available in that part of the world.

With these initiatives, Swift Energy has entered an era in which applications of its technical expertise are expanding outside of the United States.

This page was last updated on Saturday, February 08, 2003, at 07:28:34 PM.

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