Domestic Activity

Swift Energy currently has two drilling rigs operating in Lake Washington and has three additional drilling rigs operating in Texas, targeting Frio natural gas objectives in the Garcia Ranch area in Kenedy County, the Wilcox sands in Goliad County and the Austin Chalk in the Brookeland Field in Newton County. During the third quarter, the Company also plans to commence drilling operations targeting natural gas in the AWP Olmos Field in McMullen County, Texas.

Recent drilling in the Lake Washington Field continues to further delineate and appraise additional oil reserves. Since the last update, the Company has successfully drilled and completed eight oil wells in the Lake Washington Field. This brings the total to 37 of 44 successful wells this year in Lake Washington for an 84% success rate. One recent Lake Washington well of note, the CM# 261 well, was drilled directionally to a measured depth of 6,707 feet on the eastern side of the salt dome in an area without significant prior drilling activity and encountered seven sands including members of the D, E and F series sands. Analyses of electric logs indicate 489 feet (true vertical depth) of net pay in this well.

As expected, Swift Energy’s production was constrained in Lake Washington during August averaging approximately 7,900 gross barrels per day (or approximately 6,500 net barrels per day) as facility upgrades in the field progress, causing occasional partial shut downs to complete certain work. The upgrades to these facilities are continuing as expected and should be completed during the fourth quarter.

New Zealand Activity

In the Rimu/Kauri area in New Zealand, SENZ recently drilled and completed the Kauri-E2 well in the Kauri Sand. The previously drilled and completed Kauri-E1 well and the Kauri-E2 well were both drilled to further delineate the Kauri Sand encountered in the Kauri-A4 well drilled in late 2002. Both wells were successfully fracture stimulated last week and are beginning to flow hydrocarbons to the Rimu Production Station. Following the initial well bore clean up and stabilization of flowing pressures, long-term production rates will be established. Additionally, operations are underway to fracture stimulate the Rimu-A1 well to enhance production from the Tariki Sand.

SENZ has begun operations for the re-entry of the Tuihu-1A exploration well located in the Taranaki Basin on Petroleum Exploration Permit #38718 targeting the Tariki and Eocene Sands. The Tuihu-1 well originally was drilled in late 2000 and early 2001 but the operator, Fletcher Challenge, suspended drilling before reaching these targeted objectives. Swift is now the operator of this well and has a 50% working interest in the permit.

Price Risk Management

Swift Energy also announced that since its last update, it has continued to enter into additional price risk management transactions. The Company recently purchased additional crude oil floors, which cover 60,000 barrels in October and 30,000 barrels in November, at a strike price of $28.00 per barrel and $27.00 per barrel, respectively. The Company has also purchased natural gas floors, which cover 300,000 Million Btu (MMBtu) for November and December with a strike price of $4.75/MMBtu.

Swift Energy Company engages in developing, exploring, acquiring and operating oil and gas properties, with a focus on onshore and inland waters 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, 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.