SWIFT ENERGY COMPANY NEWS

SWIFT ENERGY ANNOUNCES 13% PRODUCTION INCREASE AND EARNINGS OF $0.13 PER SHARE FOR SECOND QUARTER 2002

HOUSTON, July 31, 2002 -- Swift Energy Company (NYSE, PCX: SFY) announced a 13% increase in production for the second quarter of 2002 to 12.7 billion cubic feet equivalent (“Bcfe”), an average of 139.3 million cubic feet equivalent per day (“MMcfe/d”), compared to 11.3 Bcfe for the second quarter of 2001. Net income for the quarter was $3.6 million or $0.13 per diluted share, a decline of 76% from $15.0 million or $0.59 per diluted share during the second quarter in 2001, primarily due to lower commodity prices.  

Terry Swift, President and Chief Executive Officer of Swift Energy Company, noted that, “The second quarter has brought significant progress for Swift, both financially and operationally.  Early in the quarter, we were able to improve our financial position with the $200 million debt and $31 million equity financings, which together strengthen our balance sheet and improve our liquidity and allow us to continue to effectively execute our strategy and pursue additional opportunities.   Operationally, Swift’s record level of production in the second quarter helped set the pace and our efforts at Lake Washington continue to validate the potential for this area with each successive well.   We continue to believe that we will achieve our goal to more than double reserves and production in this area by year-end. We have now identified over 50 potential drilling locations, and we are steadily increasing production from the field.   In New Zealand, we began drilling the Kauri-A4 exploratory well, and the Rimu Production Station was brought on stream beginning commercial production at our Rimu discovery. The TAWN assets, acquired in January from Shell NZ, have continued to perform at or above our expectations. We have also begun implementing enhancement opportunities on the TAWN properties.”

Production

The Company saw a 3% sequential increase in production over the 12.3 Bcfe of production reported in the first quarter of 2002. Domestic production totaled 8.9 Bcfe for the second quarter of 2002, which was down 8% from production in the first quarter of 2002 and down 20% compared to production in the second quarter of 2001.   Production in New Zealand increased to 3.8 Bcfe, a 45% increase over production in the first quarter of 2002, when the Company first began commercial production there.   Production from New Zealand accounted for 30% of the Company’s total second quarter production. Natural gas accounted for 43% of domestic production during the second quarter and 53% of total production.

Revenues and Expenses

Revenues for the second quarter totaled $38.6 million, a decline of approximately 26% from revenues of $52.3 million during the second quarter in 2001.  Cash flow from operations before changes in working capital declined 47% to $20.3 million ($0.76 per share) compared to $38.0 million ($1.54 per share) in the second quarter of 2001. The Company saw slight increases in most of its costs when compared to costs in the comparable quarter of 2001.   Interest expense increased 91% to $6.1 million as the Company refinanced its debt over a longer term to enhance liquidity.   Lease operating costs on a per unit basis, exclusive of production taxes, were $0.55 per thousand cubic feet equivalent (“Mcfe”) in the second quarter, a decline of nearly $0.04 per Mcfe from first quarter levels, due to cost reduction efforts that the Company has implemented during the year.   Revenues and cash flow for the second quarter 2002 are lower than in the comparable quarter of 2001 primarily as a result of lower prices.

Pricing

Average composite prices were down 33% during the second quarter this year at $3.02 per Mcfe compared to $4.54 per Mcfe in the previous year’s quarter. Average domestic natural gas prices received in the quarter were $3.53 per thousand cubic feet (“Mcf”), a decrease of 24% from the $4.66 per Mcf received a year earlier, while domestic crude oil prices averaged $25.13 per barrel, down 4% from oil prices in the previous year’s second quarter. Prices received for domestic natural gas liquids (“NGLs”) were $12.77 per barrel. This provided a composite average domestic price for the quarter of $3.52 per Mcfe.  In New Zealand, the Company realized $25.01 per barrel for crude oil, $11.18 per barrel for NGLs, and $1.36 per Mcf for natural gas.  The natural gas price was somewhat higher this quarter due to the strengthening of the New Zealand dollar.  The average realized composite price in New Zealand was $1.86 per Mcfe. The Company did, however, see a 39% improvement in the overall composite prices from those in the first quarter of 2002, when the total composite average price was $2.17 per Mcfe.

Six-Month Results

Through the first six months of 2002, production totaled 25.0 Bcfe, an increase of 16% from the 21.6 Bcfe seen last year during the same period.   Revenues for the first six months of 2002 were $72.9 million, down 36% from $114.7 million during the same period last year. Net income declined to $6.6 million ($0.25 per diluted share), an 82% decline from $37.3 million ($1.46 per diluted share) in the first half 2001.   Cash flow, before changes in working capital, declined 63% in the first six months to $31.7 million ($1.23 per share) from $86.0 million ($3.48 per share) in same period in 2001. Lower revenues, net income and cash flow in 2002 are primarily the result of lower commodity prices.

Domestic Update

During the second quarter, the Company drilled eight wells, made up of seven development wells and one exploration well.   Five of these wells were completed during this period, with two others waiting on a completion rig.  One development well was plugged and abandoned. All of the Company’s drilling activity this quarter was concentrated in the Lake Washington Field.  A completion rig will return in mid-August to finish completing the remaining wells drilled in the second quarter and subsequently.  Production from the field averaged approximately 1,817 barrels per day (b/d) in June net to Swift’s interest, which is more than triple the production of 652 b/d at the time the field was acquired in March 2001.  The Company expects to drill nine additional wells in Lake Washington in the third quarter. Facilities in the field are being upgraded to handle over 9,000 b/d of crude oil. This work should be completed later this quarter.

New Zealand Update

Swift spudded the Kauri-A4 exploratory well on June 22, 2002.  The well has multiple objectives in the Kauri Sands, Tariki Sands and the Kapuni Sands.   The well is expected to take approximately 100 days to drill.   Production from the TAWN fields averaged approximately 40 MMcfe/d during the second quarter of 2002, which was higher than anticipated because of higher levels of demand.   Daily production in this area is expected to average approximately 35 MMcfe/d for the remainder of the year because of anticipated lower demand due to increased availability of hydroelectric power. The Rimu Production Station (RPS) began operating in the second quarter and averaged approximately 1,011 barrels of oil equivalent per day (687 b/d of crude oil plus NGLs and 1.9 MMcf/d of natural gas) during the second quarter.   Following the drilling of the Kauri-A4 well, the rig will be moved to Rimu to drill a development well to provide additional throughput for the RPS.   The Huinga-1B well (15% working interest) was drilled and casing set to a depth of 14,517 feet.   This well will be tested over the next several weeks.

Earnings Conference Call

The Company will conduct a conference call and live webcast on Wednesday, July 31^st, at 9:00 a.m. Central Daylight Time, in conjunction with this second quarter earnings release. To participate in this conference call, dial 973-872-3462 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 13^th by dialing (973) 341-3080 (PIN# 3275669). Additionally, the conference call will be available by accessing the Company’s website at www.swiftenergy.com and clicking on the hyperlink.

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