Virgil Swift, president and chief
executive officer of Swift Energy
International, stands in front of
the "Bee Hive"--the seat of
government in Wellington, New
Zealand's capital city. Swift
Energy is pursuing the
exploration and development of
approximately 65,000 acres in
the Onshore Taranaki Basin on
New Zealand's North Island.

On June 12, 1995, Swift Energy Company formed a wholly owned subsidiary, Swift Energy International, Inc., whose mission is to pursue oil and natural gas opportunities outside of the United States. The subsidiary currently is focusing on three major areas: New Zealand, Russia, and Venezuela.

In New Zealand, Swift is pursuing the exploration and development of approximately 65,000 acres in the Onshore Taranaki Basin on the North Island.

The Company was awarded a Petroleum Exploration Permit from the New Zealand Minister of Energy in October 1995, which allowed the initial phase of the work plan to begin. In this phase, Swift is applying its expertise in seismic technology to identify potential drilling prospects and is committed to analyzing 460 kilometers of existing seismic data and generating 100 kilometers of new seismic data by December 31, 1997. During latter phases, Swift will commence drilling at least one well prior to July 31, 1998; review the drilling results by July 31, 1999; and drill at least one development well or acquire additional seismic data by July 31, 2000.

In Western Siberia in Russia, Swift is assisting with the development and production of oil, condensate, and natural gas reserves from two license areas located about 1,500 miles northeast of Moscow.

During May 1995, the Company executed a Management Agreement with Senega, the Russian Federation joint stock company that has been Swift's partner in the project since the signing of a Participation Agreement in 1993.

Under the terms of the management agreement, Swift will assist Senega with the development of the oil, condensate, and natural gas reserves in the license areas, as well as arrange for the capital funding necessary for the development. In addition to other rights, Swift will receive a 49% interest in the production income derived from the license areas after repayment of costs. Swift will also receive a minimum 5% net profits interest in future revenues under the terms of the Participation Agreement and a 1% net profits interest that was purchased directly from Senega.

During 1995, ownership of the subsidiary, Swift Energy de Venezuela, C.A., passed from Swift Energy Company to Swift Energy International, Inc. Swift has been invited by a subsidiary of Petroleos de Venezuela, S.A.--the national oil company of Venezuela--to review and evaluate the potential development of a natural gas project in Western Venezuela. Swift also continues to evaluate other opportunities in Venezuela.