In 2003 and beyond, Swift’s pursuit of long-term growth opportunities will continue to focus on the Gulf Coast in the United States and the Taranaki Basin in New Zealand. Both regions provide unexploited potential close to growing markets facing tighter future supplies, and they are both prime areas where Swift can expand profitability.

In Texas, Swift’s 2003 prospects include three in the Frio sands (the Venice prospect in Kenedy County and the Pisa and West Pisa prospects that lie along the border of Kenedy and Willacy counties), one in the Wilcox sands (the Pearl prospect in Lavaca County), and two in the Woodbine sands (the Jaguar and Bobcat prospects, both in Polk County).

In Louisiana, Swift has two Miocene prospects planned for 2003 located in the Lake Washington Area in Plaquemines Parish.

Industry and economic conditions caused Swift to defer further drilling in the Garcia Ranch region in 2002 except for participating in one well, the Burns #1 drilled in Kenedy County on the Milan prospect that Swift developed. The well, in which the Company holds a 33% working interest, averaged 3.6 MMcfe per day during a 10-day test period.

Swift developed its prospects in this area by analyzing three-dimensional seismic data and geological projections based on well-bore data from producing wells.

Swift’s prospects in the Wilcox sands are based on the Company’s analysis of two- and three-dimensional seismic data.

Acquired in 2001, the Lake Washington Area was the site of two of Swift’s discoveries in 2002. Wells in this area produce from an east-west trend of Miocene age sand layers that lie one above the other around a salt dome (see page 8).

Swift currently has four exploration prospects in New Zealand, three of which are located in or near Swift’s core areas of operations (see map on page 13). The Matai prospect and the Tawa prospect are covered by the same exploratory permit (PEP 38719) as the Rimu/Kauri Area, and the Waihapa prospect is located in Swift’s TAWN Area (PML 38140). The Tuihu prospect (PEP 38718), in which Swift increased its interests from 20% to 50% in early 2003, is north of the TAWN Area. In addition, in 2002 the New Zealand government awarded Swift 100% working interests in two more exploration permits covering acreage adjacent to the Rimu/Kauri permit (PEP 38759 and PEP 38756).

During 2003, Swift plans to drill the Tawa prospect and/or the Matai prospect, which are overlapping prospects northwest of the Rimu/Kauri Area. The Tawa prospect is a stratigraphic trap where Swift will target the Kauri sands, the Tariki sandstone, and the Kapuni sands. The shallower Matai prospect, located on the southeast flank of the Tawa prospect, was originally identified on the basis of the analysis of two-dimensional seismic data that Swift acquired in 2000 and was further analyzed on the basis of additional two-dimensional seismic data obtained over 17 kilometers in 2002. It is a structural trap with a four-way closure and will target the Urenui and the Moki sandstones.

Swift also has scheduled a re-entry of the Tuihi #1 in 2003 to sidetrack or deepen a well drilled on the Tuihu prospect in 2001. The targeted sands will be the Tariki and Kapuni sands.

During 2002, Swift’s major acquisition was of the TAWN Area in the Taranaki Basin of New Zealand, which is located only 17 miles from Swift’s Rimu/Kauri Area. Subsequently in 2002, Swift increased its interests in the TAWN Area from 96.76% to 100% and its interest in the Rimu/Kauri Area from 90% to 100% (see pages 12-13).