SWIFT ENERGY COMPANY NEWS

SWIFT ENERGY REPORTS THIRD QUARTER PRODUCTION REACHES RECORD LEVEL

HOUSTON, November 4, 1998 - Swift Energy Company (NYSE, PCX: SFY) reported today that quarterly oil and gas production for the three months ended September 30, 1998, reached an all-time record of 133.1 million cubic feet of natural gas equivalent per day (MMcfe/d), an 87% increase over the 71.1 MMcfe/d produced during the third quarter of 1997. Because of this strong production growth, oil and gas sales during the third quarter increased 45% compared to last year despite a 22% decline in combined oil and natural gas prices. Net income for the quarter totaled $2.5 million, or $0.15 per share, before a non-cash charge to third quarter earnings necessitated by the very low oil and gas prices experienced at the end of September.

The non-cash charge is largely the result of a current ceiling test impairment, which became necessary solely because of a short-term downward fluctuation in product prices and accounting rules that require current pricing to be applied to long-term production projections. This ceiling test impairment does not represent a write-down of the Company’s oil and gas reserves. In fact, during the course of the last several months, the Company’s reserves have been exhaustively reviewed, not only by the Company itself, but also by two independent engineering firms and by a syndicate of ten of the world’s leading banks.

The sharp increase in production resulted from Swift’s recent acquisition from Sonat Exploration Company of producing properties in Texas and Louisiana in the vicinity of Toledo Bend Lake. Swift took over operations of the Toledo Bend properties during the third quarter of 1998, and by the end of the quarter had placed on production five dual-horizontal wells in the Masters Creek Field in Vernon Parish, Louisiana, that had been previously shut-in or were awaiting installation of facilities. The Company’s combined production from these wells is currently averaging 23.1 MMcfe/d. The Company anticipates that five similar wells will be brought on production before year-end. Also during the third quarter, Swift participated in the drilling and successful completion of a horizontal well in the nearby Chasmore Field.

In other regions, Swift drilled a successful development well in the Olmos Field in McMullen County, Texas, and participated in two successful horizontal wells in Fayette County and Washington County, Texas.

These continued improvements in production were offset to a significant degree by low natural gas and crude oil prices, which declined 22% and 28%, respectively, from the same period in the previous year. The low natural gas prices particularly impacted Swift’s third-quarter results, since natural gas accounted for approximately two-thirds of the Company’s production.

 Because of the decline in gas prices and the persistence of the lowest crude oil prices in over a decade, based upon internal estimates, Swift’s domestic capitalized oil and gas property costs exceeded the Company’s full cost ceiling, necessitating for the first time in the Company’s history, a before-tax non-cash charge to earnings of $77.2 million ($50.9 million after tax). The economic and political uncertainty that arose during the third quarter in Russia caused the Company to reevaluate the timing of the recovery of its capitalized costs in that country. In addition, the international economic uncertainty and currency concerns in Venezuela, combined with the price volatility and severe tightening of international credit markets, has caused the Company to reevaluate its prospects of participating in further Venezuelan exploration activities in the foreseeable near-term future. This resulted in a separate before-tax non-cash charge to earnings of $13.6 million ($9.0 million after tax). The combination of these two non-cash impairment charges reduced before-tax earnings by $90.8 million, resulting in a net loss for the quarter totaling $57.4 million, or $3.50 per share, compared to net income of $4.7 million, or $0.27 per diluted share, for the third quarter of 1997. For the nine months ended September 30, 1998, the net loss was $51.3 million, or $3.11 per share, compared to earnings of $15.6 million, or $0.88 per diluted share, during the first three quarters of 1997.

It is important to note that the ceiling test for companies that follow the "full cost" method of accounting is calculated each quarter according to Securities and Exchange Commission rules using end-of-period pricing, held constant over the remaining reserve life. Companies are required to reduce the carrying value of their oil and gas properties if, at the end of a reporting period, the value exceeds the after-tax present value of future production from those properties, using a discount rate of 10% and current oil and gas prices without escalation. The most recent ceiling test therefore assumes that essentially all of the Company’s current proved reserves will be produced at the low energy prices in effect on September 30, 1998. The extreme volatility of natural gas prices together with the SEC rules caused the measure of value to be excessively low.

Ceiling test impairments do not impact cash flow, but they do have the effect of reducing future depreciation, depletion, and amortization charges and, in turn, increasing reported earnings in subsequent periods.

With respect to the current industry environment, A. Earl Swift, Swift’s Chairman and Chief Executive Officer, emphasized Swift's adaptability to adverse conditions. "Despite the poor pricing environment for oil and natural gas during most of 1998, Swift Energy has continued to implement its strategic plan of building shareholder value by achieving sustained growth in reserves, production, and cash flow," he said. "We remain highly confident in both the quality of our reserves and our ability to meet our growth targets."

Commenting on the Company's outlook, Mr. Swift noted, "Swift Energy is well positioned to continue its long history of growth in shareholder value. We continue to achieve impressive increases in production and sales. The Company’s development drilling inventory is at record levels, and we have a high-quality portfolio of exploration projects. At the same time, Swift has a strong financial position to execute its program, a fact recently confirmed by our completion of a $250 million Revolving Credit Facility with a syndicate of ten of the world’s leading financial institutions. Given the Company's drilling opportunities, the expertise and experience of our people, and our financial strength, we have every reason to remain confident in our ability to grow. "

 Swift Energy Company is an independent oil and gas company engaged in the exploration, development, acquisition and operation of oil and gas properties, with a focus on U.S. onshore natural gas reserves. Founded in 1979 with headquarters in Houston, Texas, the Company has achieved outstanding growth rates in proved oil and gas reserves, production, and cash flow over the last five years through a disciplined program of low to medium risk acquisition 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.