HOUSTON, January 21, 2003 -- Swift Energy Company (NYSE, PCX: SFY) announced today that it expects to report an increase of 15% to 16% in year-end 2002 proved reserves to approximately 740 to 750 billion cubic feet equivalent (“Bcfe”), compared to 646 Bcfe at year-end 2001. For 2002, Swift expects to report reserve replacement of 290% to 310% of 2002 production with finding and development costs of $1.00 to $1.10 per thousand cubic feet equivalent (Mcfe).

Domestic proved reserves are expected to increase by 8% to 9% to approximately 586 to 594 Bcfe with a reserve replacement of 222% to 246% of 2002 domestic production at a finding cost of approximately $0.80 to $0.88 per Mcfe. The increase in domestic proved reserves is primarily attributable to drilling activity in the Lake Washington Field, where proved reserves increased by 150% to approximately 180 Bcfe (30 million barrels of oil equivalent) from 73 Bcfe at the end of 2001.

Proved reserves in New Zealand increased 51% to 53% during 2002 to approximately 154 to 156 Bcfe at year-end replacing 436% to 448% of 2002 New Zealand production at an approximate net finding cost of $1.28 to $1.32 per Mcfe, after giving full effect to the downward reserve revision in the Rimu/Kauri area. The increase in New Zealand proved reserves is primarily attributable to the acquisition of the TAWN fields in late January 2002 and offset by the downward reserve revision, which is significant for the Rimu/Kauri area. Initial findings of a study conducted by the Integrated Reservoir Solutions Division of Core Laboratories (NYSE:CLB) (“Core Labs”) have demonstrated that water-based drilling and completion fluids caused significant formation damage in the Tariki sandstone surrounding already drilled wellbores in the Rimu/Kauri area.

Production for 2002 is expected to increase 10% to 11% to approximately 49.8 Bcfe compared to the 44.8 Bcfe produced in 2001. For the fourth quarter 2002, production totaled about 12.6 Bcfe with domestic activity contributing approximately 7.6 Bcfe and New Zealand contributing approximately 5.0 Bcfe. This represents a 10% increase from the 11.5 Bcfe of production during the same quarter in 2001, and an increase of about 3% from the 12.2 Bcfe produced in the third quarter of 2002. The average oil price received by the Company during the fourth quarter of 2002 is expected to exceed $25.00 per barrel, both domestically and in New Zealand. The estimated price for natural gas liquids is expected to exceed $15.00 per barrel domestically and $11.00 per barrel in New Zealand, and the estimated price for natural gas is expected to exceed $3.70 per thousand cubic feet (“Mcf”) domestically and $1.25 per Mcf in New Zealand. Average daily production for the Company over the recent thirty-day period ending January 16, 2003 was approximately 146 million cubic feet equivalent per day (“MMcfe/d”) comprised of 17% from the Lake Washington area, 17% from the AWP Olmos area, 14% from the Masters Creek area, 6% from the Brookeland area, 8% from other domestic operated and non-operated properties. In New Zealand, 34% of total Company production came from TAWN and 4% from the Rimu/Kauri area.

Terry Swift, President and CEO of Swift Energy, commented that “We are extremely pleased with the progress the Company has made in 2002, particularly in our Lake Washington area. We believe that we have transitioned the Company into a stronger position entering 2003. We set out in 2002 to meet certain objectives, which included both operational and financial targets, and we have accomplished nearly all of these. One of the more significant objectives was to stabilize and reduce the overall production decline profile for the Company, which we have done. Additionally, we wanted to increase our reserves and production by at least 10%, while at the same time decreasing the percentage of our proved undeveloped reserves from 50% to 40%, and we have accomplished these goals as well. We also set out to spend our capital more effectively, which we have done by achieving a finding and development cost well below our five-year average. We believe that we can continue to build upon these accomplishments and increase value for our shareholders as we move forward in 2003.”

The Company currently plans to spend $115 to $130 million in total capital expenditures in 2003, excluding any acquisitions. The budget for 2003 is in large part dependent upon performance and prices during the year. Approximately 85% of the budget is targeted for domestic activities, primarily in the Lake Washington area, with about 15% planned for New Zealand activities. The above amount is net of approximately $5 to $15 million of non-core property dispositions that are planned for later in the year. Swift’s budget will begin at the low end of the range, and depending on commodity prices and successes in operations, it may increase to the high end of the range. The Company currently estimates that both proved reserves and production will increase between 7% to 12% in 2003.

In Lake Washington, the Company averaged approximately 4,000 barrels of net oil equivalent production per day over the recent thirty-day period ending January 16, 2003. This amount represents approximately 4,900 barrels of oil equivalent per day of gross production from the field. Swift has an approximate 82% net revenue interest in the Lake Washington area. Swift installed a Lease Automatic Custody Transfer (LACT) unit during the fourth quarter. This allows the Company to deliver its production directly into a crude oil pipeline, which reduces the Company’s transportation and processing costs and also removes certain production constraints associated with the previous system that limited gross production to approximately 4,000 barrels of oil per day. Recently completed facility upgrades have increased the field’s production capacity to 9,000 gross barrels per day of crude oil. The Company has plans to further expand and improve this capacity to at least 14,000 gross barrels of crude oil by the end of this year.

During the fourth quarter of 2002, the natural gas processing plant for the Brookeland and Masters Creek Fields experienced a fire that interrupted 100% of the production over a nine-day period, but which returned to normal operations within two weeks. There were no injuries, and loss of production for the fourth quarter amounted to approximately 150,000 Mcfe, net to the Company.

The Company moved a second drilling rig into the Lake Washington Field earlier this month and has plans to drill 50-60 wells in the area during 2003. The Company also plans to drill 10 wells in the AWP Olmos area to maintain natural gas production levels in that core area in Texas. The Company also expects to drill at least one additional well in both the Brookeland and Masters Creek areas in the second half of the year.

In the fourth quarter of 2002, the Company drilled six wells in Lake Washington Field. Four of the six wells were successfully completed and all but one of them was placed on production by year-end. The Company participated in one non-operated well, the Burns #1 (30% working interest), in the Garcia Ranch area of Kenedy County in the fourth quarter. This well has averaged 2.9 million cubic feet of natural gas plus 121 barrels of condensate per day of gross production or 3.6 MMcfe/d over the past 10 days.

During the fourth quarter, the Company set protection pipe in the Kauri-A4 well and re-perforated approximately 33 feet in the Kauri Sand to further test the well and prepare it for hydraulic fracture stimulation. In anticipation of the fracture stimulation procedure, the re-perforated section was limited to approximately 27% of the interval that was initially perforated. The well flow tested at rates of approximately 1.6 MMcf/d and 58 barrels of condensate per day over a five-day period, which is approximately 80% of the volume of the initial test that was over a larger interval. Also during the fourth quarter, the Company’s primary purchasers of natural gas negotiated the opportunity to access additional deliverability from the TAWN fields, which will allow the Company to potentially sell natural gas at rates above the current contracted amounts. These additional purchases, if made, will be at or above the current contracted price.

During the first half of 2003, the Company plans to further evaluate the productivity of the Manutahi Sand and Kauri Sand as well as the Tariki Sand in the Rimu/Kauri area. These plans call for remediation efforts on certain completions in the Tariki Sand based upon recommendations of Core Labs, which has conducted a study of the formation damage in these wells. The plans also include the drilling of an additional well in the Manutahi Sand and fracture stimulating the Kauri Sand using techniques based upon the conclusions of the study. Based upon the results of these efforts in the first half of 2003, additional work programs may be undertaken in these areas during the second-half of the year.

The Company also announced that it has recently entered into a series of participating costless collars and floors for the majority of 2003. The Company has purchased floors for the first quarter that cover 425,000 barrels of crude oil at an average strike price of $26.45. For the first quarter, the Company also has 180,000 barrels of crude oil that are protected with participating costless collars with a floor of $21.00 and an average ceiling of $31.65, where the Company participates in 60% of the upside when the crude oil price received exceeds the ceiling price. In the second quarter, the Company also has 180,000 barrels protected using participating costless collars (with 60% upside participation) with a floor of $21.00 and a ceiling of $29.04. These hedges cover approximately 65-70% of the Company’s currently expected crude oil production in the first quarter and 15-20% of expected crude oil production in the second quarter.

For the first quarter, the Company has 1,300,000 MMBtu of its natural gas protected with a participating costless collars (with 60% upside participation) with a floor of $3.00 and an average ceiling of $5.16. In the second quarter, the Company has 750,000 MMBtu protected with an average floor of $4.15 and an additional 600,000 MMBtu protected with participating costless collars (with 60% upside participation) with a floor of $3.00 and an average ceiling of $5.50. The Company has 750,000 MMBtu of natural gas protected in the third quarter and 250,000 MMBtu in the fourth quarter, both with an average floor of $4.15. At this time, the Company has now protected approximately 40-45% of its expected domestic natural gas production in the first quarter; 45-50% in the second quarter; 25-30% in the third quarter; and 5-10% in the fourth quarter.

Swift Energy Company engages in developing, exploring, acquiring, and operating oil and gas properties, with a focus on onshore and inland water oil and natural gas reserves in Texas and Louisiana and onshore oil and natural gas reserves in New Zealand. Founded in 1979 with headquarters in Houston, Texas, the Company has consistently grown its proved oil and gas reserves, production, and cash flow through a disciplined program of acquisitions 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, guidance or other statements other than statements of historical fact, are forward-looking statements. These statements are based upon assumptions that are subject to change and to risks, especially volatility in oil or gas prices, and lately availability of services and supplies. 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. Estimates of future financial or operating performance provided by the Company are based on existing market conditions and engineering and geologic information available at this time. Actual financial and operating performance may be higher or lower. Future performance is dependent upon oil and gas prices, exploratory and development drilling results, engineering and geologic information and changes in market conditions.

SWIFT ENERGY COMPANY
FIRST QUARTER AND FULL YEAR 2003
GUIDANCE ESTIMATES 
(Dollars and Average Share Numbers In Thousands Except Per Production Unit Amounts)

Note: Swift Energy now maintains all its price risk management instruments (Hedge positions) on its guidance page on the Swift Energy website (www.swiftenergy.com).