We have audited the accompanying consolidated balance
sheets of Swift Energy Company and subsidiaries (the "Company") as of
December 31, 2007 and 2006, and the related consolidated statements of
income, stockholders’ equity, and cash flows for each of the three years in
the period ended December 31, 2007. These financial statements are the
responsibility of the Company’s management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards
of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements referred to
above present fairly, in all material respects, the consolidated financial
position of the Company at December 31, 2007 and 2006, and the consolidated
results of their operations and their cash flows for each of the three years
in the period ended December 31, 2007, in conformity with U.S. generally
accepted accounting principles.
As discussed in Note 1 to the consolidated financial
statements, effective January 1, 2007 the Company adopted Financial
Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty
in Income Taxes, an interpretation of Statement of Financial Accounting
Standards No. 109, Accounting for Income Taxes, and effective January 1,
2006 the Company adopted Statement of Financial Accounting Standards No. 123
(revised 2004), Share-Based Payment.
We also have audited, in accordance with the standards of
the Public Company Accounting Oversight Board (United States), the Company’s
internal control over financial reporting as of December 31, 2007, based on
criteria established in Internal Control-Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission and our
report dated February 27, 2008 expressed an unqualified opinion thereon.
