RESERVES GROWTH WITH 
A REGIONAL FOCUS

                                           1994 ANNUAL REPORT

Notes to Consolidated Financial Statements
Swift Energy Company and Subsidiaries


4. Short-Term Bank Borrowings

The Company had available, through a two-bank group, a revolving line of credit of $29,000,000 at the end of 1994 and $20,000,000 at the end of 1993 bearing interest at the bank's base rate plus 0.5% (9% at December 31, 1994, and 6.5% at December 31, 1993), secured by the Company's interests in certain oil and gas properties and general partner interests. Effective as of February 14, 1995, this borrowing base was increased to $35,000,000. The $18,600,000 outstanding amount under this facility at December 31, 1994, was borrowed primarily to fund the advance purchase of producing properties on behalf of affiliated partnerships and/or joint ventures to be subsequently reimbursed and to fund the Company's working capital and capital expenditures needs. The $2,650,000 outstanding amount under this facility at December 31, 1993, was primarily borrowed for the same purposes.

The terms of the revolving line of credit include, among other restrictions, a limitation on the level of cash dividends (not to exceed $424,000 in any fiscal year), requirements as to maintenance of certain minimum financial ratios (principally pertaining to working capital, debt, and equity ratios) and limitations on incurring other debt. Since inception, no cash dividends have been declared on the Company's common stock. The Company presently intends to continue a policy of using retained earnings for expansion of its business. As of December 31, 1994, the Company was in compliance with the provisions of these agreements. The revolving line of credit extends through May 1, 1995.

During 1993, the Company also had available with the same two-bank group a line of credit for producing oil and gas property acquisitions, to be secured by producing oil and gas properties acquired and held for transfer. There were no outstanding amounts under this facility at December 31, 1993. This facility was terminated on January 18, 1994 at the request of the Company.

On June 21, 1994, the Company entered into a new Acquisition Advance Agreement with the same two bank group, bearing interest at the greater of (a) the bank's base rate plus 1% (9.5% at December 31, 1994) or (b) the Federal Funds rate plus 1.5%, to be secured by producing oil and gas properties acquired and held for transfer. At December 31, 1994, $3,629,000 had been borrowed under this agreement to fund the advance purchase of producing properties on behalf of affiliated partnerships and/or joint ventures to be subsequently reimbursed. This credit agreement extends through June 15, 1995.

The Company's third credit facility is an amended and restated revolving line of credit with the lead bank for $5,000,000, bearing interest at the bank's base rate (8.5% at December 31, 1994 and 6% at December 31, 1993), secured by certain Company receivables. There were no outstanding amounts under this facility at December 31, 1993. At December 31, 1994, $5,000,000 was outstanding under this facility. This credit facility extends through May 1, 1996.

In addition to interest on these credit facilities, the Company pays a commitment fee to compensate the banks for making funds available. The fee on the revolving line of credit is calculated on the average daily remainder, if any, of the commitment amount less the aggregate principal amounts outstanding, plus the amount of all letters of credit outstanding during the period. The fee on the Acquisition Advance Agreement is .5% of the amount of the advance. The aggregate amounts of commitment fees paid by the Company were $150,000 in 1994 and $112,000 in 1993.

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