SWIFT ENERGY COMPANY NEWS

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SWIFT ENERGY ANNOUNCES EARNINGS OF $0.07 PER SHARE FOR THE THIRD QUARTER 2002

HOUSTON, November 6, 2002 -- Swift Energy Company (NYSE, PCX: SFY) announced today that net income was $1.9 million or $0.07 per diluted share for the third quarter 2002, a decline of 74% from $7.4 million or $0.29 per diluted share for the third quarter of 2001. Cash flow from operations before changes in working capital was $16.6 million or $0.61 per diluted share for the third quarter 2002, a decline of 36% from $25.8 million or $1.01 per diluted share for the same quarter in 2001. Income and cash flows for the current quarter are lower than in the comparable quarter of 2001 primarily as a result of the shifting production from domestic natural gas to New Zealand natural gas and higher interest expense.

Terry Swift, President and CEO, noted, “We fully expect to meet our primary goals for 2002, which were designed to improve the decline character of our production base, increase proven reserves and reduce our finding costs. The third and fourth quarter drilling and completion work, being conducted at Lake Washington, plays an important role in achieving these goals. We anticipate our fourth quarter exit rate to exceed 4,500 barrels of oil per day at Lake Washington. Based upon our success to date, we plan to add a second drilling rig in the area in early 2003. In New Zealand, we are currently reducing our capital expenditures, pending the results of a reservoir optimization review. Based on our concerns over possible formation damage in the Tariki Sand, we have contracted the services of an international firm to review all aspects of the reservoir development. We expect this evaluation to be completed in early 2003. Finally, preliminary testing of the Kauri A-4 exploratory well was encouraging, although more work is required before a final appraisal can be made.”

Production

Production for the third quarter 2002 increased by 4% from levels in the third quarter of 2001 to 12.2 billion cubic feet equivalent (“Bcfe”), an average of 132.7 million cubic feet equivalent per day (“MMcfe/d”). This was a 4% sequential decrease from production of 12.7 Bcfe in the second quarter 2002. Domestic production totaled 8.1 Bcfe for the third quarter 2002, an average of 87.7 MMcfe/d, which was reduced by approximately 69 million cubic feet as a result of production being shut in due to Tropical Storm Isidore. Domestic production came primarily from the Company’s core areas: AWP/Two Rivers (23%), Masters Creek (17%), Lake Washington (10%) and Brookeland (6%) with 10% coming from other domestic areas. New Zealand production (34% of the total) was 4.1 Bcfe, with TAWN representing 84% of current New Zealand production and the remaining coming from the Rimu/Kauri area. Natural gas represented 49% of the domestic production and 55% of the total production.

Revenues and Expenses

Total revenues for the third quarter were $36.6 million, a decline of approximately 11% from revenues of $41.2 million during the third quarter in 2001. The Company experienced increases in production costs, general and administrative costs and interest costs when compared to costs in the comparable quarter of 2001 but saw a decrease in depreciation, depletion and amortization expense. Interest expense almost doubled to $6.6 million in the third quarter 2002 from the comparable quarter in 2001, primarily as a result of increased debt and long term debt sold in the second quarter of 2002. Lease operating costs on a per unit basis, exclusive of production taxes, were $0.61 per thousand cubic feet equivalent (“Mcfe”) in the third quarter of 2002, which is an increase of $0.04 over those expenses in the third quarter of 2001 and an increase of $0.06 per Mcfe from second quarter 2002 levels, due to increased workover costs, mainly in the Masters Creek area. The Company expects to see a further increase in lease operating expenses in the fourth quarter 2002 due to continued ongoing workover activity. In New Zealand, lease operating expenses were inline with previous guidance.

Pricing

Average composite prices were down 11% during the third quarter 2002 averaging $3.00 per Mcfe compared to $3.36 per Mcfe in the previous year’s quarter. Domestic average natural gas prices received in the quarter averaged $3.06 per thousand cubic feet (“Mcf”), an increase of 4% from the $2.94 per Mcf received a year earlier, while domestic crude oil prices averaged $26.95 per barrel, up 6% from oil prices in the third quarter of 2001. Prices received for domestic natural gas liquids (“NGLs”) were $14.42 per barrel. This provided a composite average domestic price for the quarter of $3.53 per Mcfe. In New Zealand, the Company realized $23.76 per barrel for crude oil, $11.03 per barrel for NGLs, and $1.28 per Mcf for natural gas. The natural gas price was somewhat lower this quarter than in the previous quarter this year due to the strengthening of the U.S. dollar. The average realized composite price in New Zealand was $1.97 per Mcfe. The Company did, however, see a 6% improvement in overall composite prices in New Zealand from those in the second quarter of 2002 of $1.86 per Mcfe.

Nine-Month Results

Through the first nine months of 2002, production totaled 37.2 Bcfe, an increase of 12% from the 33.3 Bcfe seen last year during the same period. Revenues for the first nine months of 2002 were $109.5 million, down 30% from $155.9 million during the same period last year. Net income was $8.6 million ($0.32 per diluted share), an 81% decline from $44.7 million ($1.75 per diluted share) through three-quarters of 2001. Cash flow from operations before changes in working capital declined 57% in the first nine months to $48.3 million ($1.82 per diluted share) from $111.7 million ($4.38 per diluted share) in the same period in 2001. Lower revenues, income and cash flows for the nine months of 2002 are primarily the result of the shifting production from domestic natural gas to New Zealand natural gas and higher interest expense.

Domestic Update

As recently noted, the Company drilled nine development wells and one exploration well during the third quarter of 2002, with seven of the ten successful. Recently, Swift drilled the CM #202 well which encountered 196 feet of net pay in four zones and is waiting on a completion rig. Additionally, seven others in the area are waiting on a completion and/or installation of a flow lines. All of these wells have been drilled in the Lake Washington Field. The drilling rig remains active in this field, and a completion rig recently entered the area to begin completing the newly drilled wells for production. A non-operated well, the Burns #1 (30% working interest), began drilling in the Garcia Ranch area of Kenedy County in the third quarter and should reach total depth in the fourth quarter. The Company is currently planning a 50-60 well drilling program in the Lake Washington area for 2003.

New Zealand Update

The Kauri-A4 well, located in the Rimu/Kauri area in New Zealand, was recently perforated over a 121-foot area in three distinct intervals in the upper portion of the Kauri Sand. The well immediately began flowing natural gas and condensate at rates that averaged approximately 2.1 million cubic feet and 76 barrels of condensate per day with an average flowing tubing pressure of 326 pounds per square inch over the 119 hours of this production test. The well was then shut in for 82 hours in order to evaluate the pressure build up. Evaluation of the information from this Kauri Sand completion is currently underway.

Production from the TAWN fields averaged over 36 MMcfe/d during the third quarter of 2002, which was forecasted to be at this lower level during this quarter due to increased availability of hydroelectric power in New Zealand. Production from these fields is expected to increase in the first two months of the fourth quarter to over 40 MMcfe/d before returning to levels seen in the prior quarter. Net production during the third quarter 2002 from the Rimu Production Station, which was shut down for three days in July for maintenance, averaged 968 barrels of oil equivalent per day (572 barrels of oil and condensate and 1.8 MMcf of natural gas per day). A routine safety shut-down inspection of three to four days, including the installation of an interim low pressure system, is scheduled for this quarter at the Rimu Production Station and a maintenance shut-down is underway for two to three days at the TAWN facilities.

Swift Energy New Zealand was awarded two new permits in New Zealand in the third quarter, Petroleum Exploration Permits (“PEP”) 38756 and 38759, which are immediately adjacent to the Rimu/Kauri Permit--PEP 38719.

Earnings Conference Call

The Company will conduct a conference call and live web cast on Wednesday, November 6, at 9:00 a.m. Central Standard Time, in conjunction with this third 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 November 20 by dialing (973) 341-3080 (PIN# 3502438). Additionally, the conference call will be available by accessing the Company’s website at www.swiftenergy.com and clicking on the hyperlink.

Note: Swift Energy now maintains all its current price risk management information (hedge positions) on its guidance page on the Swift Energy website (www.swiftenergy.com). 

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.