Production for 2003 increased to an annual record of 53.2 billion cubic feet equivalent (“Bcfe”), an increase of 7% from 2002 production of 49.8 Bcfe. Production for the fourth quarter of 2003 was 13.4 Bcfe, which was a 6% increase from the 12.6 Bcfe produced in the fourth quarter of 2002, and a 2% decrease from the 13.6 Bcfe produced in the third quarter of 2003. The quarter-to-quarter decrease was primarily due to reduced throughput at Lake Washington resulting from downtime to install new infrastructure and from reduced nominations for natural gas in New Zealand. Fourth quarter 2003 production included 8.8 Bcfe of domestic production and 4.6 Bcfe produced in New Zealand.

Terry Swift, President and CEO, noted that “Swift Energy has just completed one of its best yearly financial performances in the history of the Company. While we celebrate the Company’s 25th anniversary in 2004, we believe our operational performance will again be record setting. In the Lake Washington Field, for instance, we produced more than 12,000 gross barrels of oil equivalent per day (10,000 net barrels of oil equivalent per day) in January 2004, which compares to approximately 5,000 gross barrels of oil equivalent per day (approximately 4,100 net barrels of oil equivalent per day) in January 2003. The diversification in our reserve and production base over the past two years provides Swift Energy with a strong foundation for additional growth into the coming years.”

Revenues and Expenses

Total revenues for the fourth quarter of 2003 increased 31% to $53.1 million from the $40.5 million of revenues received in the fourth quarter of 2002. Total revenues for the full year 2003 were $208.9 million, up 39% from $150.0 million in 2002. Swift Energy’s increased revenues for the fourth quarter and full year 2003 are attributable to higher commodity prices and increased levels of production.

Lease operating expenses, before severance and ad valorem taxes, were $0.63 per thousand cubic feet equivalent (“Mcfe”) in 2003, an increase of 7% compared to $0.59 per Mcfe in 2002. The increase was predominately due to some of the facility enhancement costs in Lake Washington and also due to currency exchange rates in New Zealand. General and administrative expenses increased to $0.27 per Mcfe during 2003 from $0.21 per Mcfe in 2002. This increase was mainly attributable to front-end costs associated with increased activity levels at Lake Washington and corporate governance expenses. Depreciation, depletion and amortization expense was $1.19 per Mcfe in 2003 compared to $1.13 per Mcfe in 2002, and interest expense was $0.51 per Mcfe compared to $0.47 per Mcfe for the same periods. Also, severance and ad valorem taxes were up appreciably to $0.36 per Mcfe from $0.24 per Mcfe due to higher commodity prices and the higher severance tax rates on crude oil from our increased crude oil production in Louisiana.

Reserves

Swift Energy again made significant strides in 2003 in improving the quality and the quantity of its reserves. Year-end 2003 proved reserves of 820 Bcfe were 47% crude oil, 41% natural gas and 12% natural gas liquids (“NGLs”), compared to year-end 2002 proved reserves of 749 Bcfe, which were 44% natural gas, 42% crude oil and 14% NGLs. Proved developed reserves remained essentially the same at 59% of total reserves at year-end 2003, compared to 60% in the previous year. The majority of proved undeveloped reserves at year-end 2003 were located in the Lake Washington area (13% of total reserves) and in the AWP Olmos area (9% of total reserves), both of which are characterized as long reserve life fields.

Domestic proved reserves increased at year-end 2003 to 644 Bcfe, driven mainly by the reserves increase in the Lake Washington Field, which increased 37% to 261 Bcfe (43.5 million barrels of oil equivalent) up from 190 Bcfe (31.7 million barrels of oil equivalent) at year-end 2002. Domestic proved reserves at year-end were 49% crude oil, 38% natural gas and 13% NGLs. Domestic proved reserves, making up 79% of total proved reserves at year-end 2003, are located in the Lake Washington area (32% of total reserves), AWP Olmos area (26% of total reserves), Masters Creek area (8% of total reserves), Brookeland area (5% of total reserves) and other domestic properties (7% of total reserves).

In New Zealand, 2003 year-end proved reserves increased 13% to 176 Bcfe, 64% of which are categorized as proved developed reserves. New Zealand reserves constitute 21% of the Company’s total proved reserves with 15% of total reserves attributable to the Rimu/Kauri area and 6% to the TAWN area. New Zealand proved reserves consist of 53% of natural gas, 38% of crude oil and 9% of NGLs. The 2003 increase in reserves was primarily attributable to drilling additions in the Kauri and Manutahi Sands.

Production & Pricing

For 2003, total production increased 7% to 53.2 Bcfe from 49.8 Bcfe in 2002. Domestically, 2003 total production decreased by 1% to 33.8 Bcfe compared with 34.3 Bcfe from 2002 levels but quarterly production increased throughout 2003 as the Company continued to focus its efforts and capital towards the development of longer life oil reserves in the Lake Washington area. During 2003, the Company also began allocating capital to natural gas development in its three other domestic core areas. New Zealand accounted for 36% of corporate production with 19.4 Bcfe produced in 2003, an increase of 25% from the 15.5 Bcfe produced there in 2002.

Total fourth quarter 2003 production of 13.4 Bcfe increased 6% from the 12.6 Bcfe produced in the same quarter of 2002 and decreased 2% from third quarter 2003 production. Fourth quarter 2003 domestic production of 8.8 Bcfe increased 16% from the 7.6 Bcfe produced in the same quarter in 2002. Fourth quarter 2003 New Zealand production of 4.6 Bcfe decreased 8% from 5.0 Bcfe produced in the same quarter in 2002, due to lower nominations of natural gas in the TAWN area because of reduced demand.

In 2003, Swift Energy realized substantially higher average domestic natural gas prices of $5.07 per thousand cubic feet (“Mcf”), an increase of 69% from the $3.01 per Mcf domestic average in 2002. Meanwhile, average domestic crude oil prices increased 22% to $29.95 per barrel from $24.57 per barrel realized in 2002. Prices for NGLs domestically averaged $19.75 per barrel in 2003, a 50% increase over the 2002 NGL prices.

In New Zealand, Swift Energy received an average natural gas price of $1.83 per Mcf for 2003 under its long-term contracts, a 38% increase over the $1.32 per Mcf received in 2002. Also in New Zealand, the Company’s McKee blend crude oil averaged $29.58 per barrel and the Company’s NGL contracts yielded an average price of $13.50 per barrel for the year 2003. New Zealand natural gas and the NGL price contracts are denominated in New Zealand dollars, which has significantly strengthened during 2003 against the U.S. dollar. The currency exchange rate increased to approximately $0.66 U.S. dollars per $1.00 New Zealand dollar at the end of 2003 compared to approximately US$0.52 to NZ$1.00 at the end of 2002 (a 25% increase).

In the fourth quarter of 2003, Swift Energy realized an aggregate global average price of $3.97 per Mcfe, an increase of 26% from fourth quarter 2002 price levels, when the price averaged $3.15 per Mcfe. Domestically, the Company realized an aggregate average price of $4.59 per Mcfe, an increase of 17% over the $3.93 received in the fourth quarter of 2002. In New Zealand, the Company received an aggregate average price of $2.78 per Mcfe for the fourth quarter in 2003, an increase of 41% over the $1.97 per Mcfe realized in 2002.

Domestic Operations

Swift Energy completed 13 of 16 wells domestically in the fourth quarter of 2003. Of these 16 wells, 15 were development wells and one was an exploration well. In Lake Washington, the Company completed eight of 10 development wells, but was unsuccessful with an exploration well. In other operated areas, Swift Energy completed a development well in the Austin Chalk in the Brookeland area and completed four wells in the AWP Olmos area. For the full year 2003, the Company completed 53 out of 63 domestic development wells and five of eight exploration wells. Currently, the Company has one rig operating in Lake Washington and one rig in the AWP Olmos area as well as the Masters Creek area.

New Zealand Operations

Swift Energy completed three of four wells in New Zealand during 2003. Two of these wells successfully targeted the Kauri Sand, the third was completed in the Manutahi Sand, and the fourth well was an unsuccessful exploration test. The Company also fracture stimulated three Kauri Sand wells in 2003. The Company recently drilled the Kauri-E3 well, which is waiting on a fracture stimulation, and also is in the process of drilling the Kauri-E4 well.

Price Risk Management

Swift Energy also announced that since its last update on January 26, it has continued to enter into price risk management transactions. The Company recently purchased additional natural gas floors that cover 200,000 million British thermal units (“MMBtu”) per month for the second quarter of 2004, all at a strike price of $5.00 per MMBtu.

Guidance

Due to the January 2004 production levels recorded in the Lake Washington area and expected production levels for the first quarter 2004, Swift Energy is increasing its domestic production guidance range for the first quarter 2004 to 10.0 to 10.5 Bcfe from the 9.7 to 10.2 range disclosed at its Analyst/Investor meetings in January 2004. Total production for the first quarter of 2004 is expected to be 13.5 Bcfe to 14.5 Bcfe. Except for changes in the domestic product mixes, all other guidance estimates remain the same.

Earnings Release

Swift Energy will conduct a conference call to discuss fourth quarter and full year 2003 financial results on Wednesday, February 11 with a live webcast, at 9:00 a.m. CST. To participate in this conference call, dial 973-339-3086 five to ten minutes before the scheduled start time and indicate your intention to participate in the Swift Energy conference call. A digital replay of the call will be available later on February 11 through February 17, by dialing 973-341-3080 and using pin #4430167. Additionally, the conference call will be available over the Internet by accessing the Company’s website at www.swiftenergy.com and clicking on the event hyperlink. This webcast will be available online at the Company’s website through February 26, 2004.

Celebrating its 25th Anniversary this year, Swift Energy Company was founded in 1979 with its headquarters in Houston, Texas. Swift Energy 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. The Company has consistently shown long-term growth in its proved oil and gas reserves, production and cash flow through a disciplined program of acquisitions and drilling, while maintaining a strong financial position.