SWIFT ENERGY COMPANY NEWS

SWIFT ENERGY REPORTS EARNINGS OF $0.59 PER DILUTED SHARE ON INCREASED PRODUCTION IN SECOND QUARTER 2001

HOUSTON, August 1, 2001 -   Swift Energy Company (NYSE, PCX: SFY) announced today increased revenues, earnings and cash flow from operations for the second quarter of 2001 compared to the same quarter in 2000. Earnings for the second quarter of $0.59 per diluted share surpassed consensus estimates with net income of $15.0 million increasing by 5% over 2000 second quarter income of $14.2 million ($0.61 per diluted share). Revenues in the second quarter 2001 rose 13% to $52.3 million, up from $46.1 million, and cash flows from operations, before changes in working capital, increased 13% to $38.0 million ($1.54 per share) compared to $33.6 million ($1.60 per share) in the same quarter last year.

Increased production and higher natural gas prices in the second quarter were responsible for these increases. Production of 11.3 billion cubic feet equivalent (“Bcfe”), including 0.2 Bcfe from New Zealand, was up by 10% from the 10.3 Bcfe reported in the first quarter of 2001 and up 4% from the 10.8 Bcfe reported in the second quarter of 2000. Reflecting lower market prices for natural gas from the first quarter, average natural gas prices received in the second quarter were $4.66 per thousand cubic feet (Mcf), an increase of 17% over the $3.99 per Mcf received a year earlier, while oil prices averaged $26.05 per barrel, down 5% from the previous year’s second quarter. This provided a composite average price for the quarter of $4.54 per thousand cubic feet equivalent (“Mcfe”), which was 8% higher than the $4.21 per Mcfe received in the second quarter of 2000. Natural gas accounted for 63% of total production during the quarter.

Record results were recorded for the first six months of 2001. Net income rose 57% to $37.3 million or $1.46 per diluted share compared to $23.8 million or $1.04 per diluted share during the first half of 2000. Revenues in the first six months of 2001 rose 37% to $114.7 million from $83.9 million a year ago. Cash flows from operations, before changes in working capital, rose 44% during the first half of 2001 to $86.0 million ($3.48 per share) compared to $59.8 million ($2.86 per share) in the year earlier period. Swift’s record performance in the first half was primarily attributable to both increased production and higher natural gas prices.

Terry Swift, President and Chief Executive Officer of Swift Energy Company, noted that, “We are very pleased with the first half results of 2001 and look forward to continued success with both our domestic and New Zealand activities in the second half of this year. Domestically, our increased emphasis on developing our core areas is bearing fruit with increasing production, and our domestic exploration program is demonstrating the success that we expect to see. In New Zealand, we began test production from the Rimu wells and have continued our successful drilling track record there with our sixth well also encountering multiple hydrocarbon-bearing zones. It is becoming quite clear that New Zealand will continue to develop into a significant core area for the Company where we will be operating for a long time to come.”

Exploration Drilling

The Company participated in four exploratory wells, which reached casing point, during the second quarter and has completed the drilling of two additional exploration wells already in the third quarter. One of these six wells has been completed, while the others are currently undergoing testing. One additional exploration well is currently drilling.

The Post #1 well (76% working interest), in the Nita #1 Prospect in Goliad County, Texas, was drilled to a total depth of 14,937 feet and was successfully tested in a Wilcox sand. It is currently producing at a rate of 2.1 million cubic feet per day and 20 barrels of oil. The well will be fracture stimulated after being on production for a few weeks.

The Foster Minerals #1 well (49% working interest), in the Lion Prospect in San Jacinto County, Texas, has casing set to a depth of 15,800 feet. This well has encountered at least three separate zones totaling over 500 feet of sand thickness in the Woodbine formation that are targeted for testing over the next several weeks.

The Mallet #1 well (65% working interest), in the Sienna Prospect in Willacy County, Texas, has pipe set to a total depth of 16,300 feet. This well encountered several Frio sands similar to those found in the Company’s previously announced Vaughn #1 well located 2.5 miles immediately to the south. This well is currently undergoing completion operations.

The Kinnally #1 well (25% working interest), in the Falcon Ridge Prospect in Zapata County, Texas, has casing set to a total depth of 11,990 feet and will be perforated and fracture stimulated in Wilcox sands upon completion of production facilities and pipeline.

The Hovden-Tierney 43-3 #1 well (75% working interest), in the Bullwinkle Prospect in Converse County, Wyoming, has casing set to a total depth of 6,510 feet. The well encountered approximately 18 feet of net pay in the Teapot Sand and will be perforated and fracture stimulated in the next few weeks.

The Swickheimer Estate #1 (60% working interest), in the Brandon Prospect in Goliad County, Texas, has casing set to a total depth of 12,973 feet. The well encountered a series of Wilcox sands and will undergo completion operations.

The non-operated Miami #1 well (15% working interest), in the Sweetlake Prospect in Cameron Parish, Louisiana, is drilling at approximately 15,000 feet and targeting Miocene sands at deeper intervals.

Additional exploration planned for the third quarter will include a deep Miocene well (50% working interest), in the Grand Lake Prospect in Plaquemines Parish, Louisiana, an additional Frio test (65% working interest) in Willacy County, Texas, another well targeting the Wilcox sands (50% working interest) in Lavaca County, Texas, and a non-operated offshore High Island well (15% working interest).

Development Drilling

The Company had previously reported that nine operated wells and one non-operated well were drilled and successfully completed in the second quarter. All but two wells have been placed on production as of this date. Five wells were drilled and completed in the AWP Olmos Field, three wells in the Brookeland Field, one well in the South Burr Ferry Field and one well in the Masters Creek Field. The addition of these wells brings the Company’s production to a current average daily rate of over 131 million cubic feet equivalent per day for the most recent week.

The Company has two rigs currently drilling in the Masters Creek Field in Rapides Parish, Louisiana, and one rig drilling in the South Burr Ferry Field in Vernon Parish, Louisiana, and one non-operated rig drilling in the Brookeland Field in Newton County, Texas. The Company expects a barge rig to begin working in the Lake Washington Field in Plaquemines Parish, Louisiana, later this month under a program to initially drill four to five development wells along with a sidetrack of one existing well.

New Zealand

As recently announced, in New Zealand the Company reported that the Kauri-A1 well in New Zealand has completed drilling to a planned total depth of 14,760 feet (4,500 meters). Significant hydrocarbon-bearing intervals have been encountered in this well at various depths. Production casing has been set to a depth of 11,480 feet (3,500 meters). Extensive testing of the Upper Tariki Sand and the Kauri Sand will be conducted in this well over the next several weeks to fully evaluate these prospective zones. Extended production testing will continue at the Rimu A and B pads. The drilling rig at Kauri will be moved and is expected to spud the Rimu-B3 well in the next few weeks. A second drilling rig is expected to spud the Kauri-A2 well, a shallow test of the Manutahi Sand, following the completion of testing operations of the Kauri-A1 well.

Earnings Conference Call

The Company will conduct a conference call and live webcast on Wednesday, August 1, at 9:00 a.m. Central Daylight Time, in conjunction with this second quarter earnings release. To participate in this conference call dial (973) 628-9554 five to ten minutes before the start of the call and indicate your intention to participate in the Swift Energy conference call. This call will be available for digital replay until August 8, 2001 by dialing (973) 341-3080 using pin # 2701581. Additionally, the conference call will be available by accessing the Company’s website at www.swiftenergy.com and clicking on the event hyperlink.

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 as well as onshore oil and natural gas reserves in New Zealand. 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 acquisition and drilling, while maintaining a strong financial position.