Domestic Activities

The Company has continued its planned development activity in the Lake Washington Field, although due to the current transportation constraint, production is currently averaging approximately 3,500 barrels of oil per day at the field. The Company is installing facilities that will allow for additional transportation of hydrocarbons from the field by barge, and it is anticipated that this will be completed by the end of this month, at which time production will be able to return to anticipated levels of 6,000 to 7,500 gross barrels of oil per day. Although transportation costs by barge will be slightly higher, they will largely be offset by higher sales point realizations on the barged crude oil sales, which are expected to reduce the net price received by no more than $0.50 per barrel. The Company is moving ahead with its 2003 plans to replace the oil pipeline connecting its facilities in the field, as well plans to install additional storage and a new custody transfer facility that will enter the sales pipeline at a new location. This work should be completed early in the third quarter.

The Company has drilled and set pipe on all nine wells that have been drilled in the field since March 12, 2003, the date of the last guidance release. This brings the 2003 total of wells drilled and completed or awaiting completion to 15 of 21 wells in the Lake Washington Field, a 71% success ratio. The Company continues to have two drilling rigs and a completion rig operating in the field. The estimated productive capacity at the time of the incident, which caused the pipeline constraint, was approximately 6,000 gross barrels of oil per day. Based on recent well tests, the Company estimates that the addition of the newly completed wells will increase the productive capacity to approximately 7,500 gross barrels of oil per day. The wells to date in 2003 have primarily been targeting the shallow sands, mainly between 1,500 feet and 5,000 feet, including the 2000’, A, D, and E sands. Recent wells have been successful targeting the F Sand and 8400’ Sand. In addition, the Company will also begin drilling the first of three second-quarter wells in AWP Olmos area later this month.

New Zealand Activities

Production from the TAWN fields averaged above 50.0 MMcf/d equivalent for the first quarter of 2003 and is expected to produce near these levels for the remainder of 2003 except for an approximate one-week period of downtime in the second quarter for routine maintenance. Production from the Rimu/Kauri area averaged approximately 6.0 MMcf/d equivalent during the first quarter of 2003, as expected. The Rimu Production Station will also be down for one week in the second quarter for required preventive maintenance.

During the first quarter of 2003, the Company performed several operations in the Rimu/Kauri area in New Zealand. The Kauri-A4 well was fracture stimulated in March 2003 and is currently being tested. The well continues to clean up, but to date the well has tested at rates up to 4.8 million cubic feet per day (“MMcf/d”) of natural gas and 202 barrels of condensate with a negligible amount of water on a 25/64-inch choke with 1,258 pounds per square inch of flowing tubing pressure. The well is currently shut-in undergoing bottom hole pressure build up tests. Plans are underway to drill one or more additional tests targeting the Kauri Sand in 2003. Work is progressing on a pipeline to connect the Kauri-A4 well to the Rimu Production Station to begin long-term production, which should begin in the third quarter 2003.

The Kauri-F1 well, testing the shallow Manutahi sands, was successfully drilled and completed in the first quarter 2003. The well is currently undergoing production testing and has continued to flow naturally over the last three weeks. Plans call for the installation of a pumping unit later this quarter. The Company also injected CO₂ into the Rimu-A2A well in the Tariki Sand and is preparing to begin production testing on this well.

Terry Swift, President and CEO noted, “We continue to be pleased with our ongoing activity in Lake Washington, as development of the field is continuing, and we are well on our way to our goal of 10,000 gross barrels of daily production in the field by year-end. The operations in New Zealand have also gone quite well, and although further testing is needed, we believe that both the Kauri Sand and the Manutahi Sand present good opportunities for future development. We are looking forward to 2003 and believe that we will accomplish those things that we set out to do this year.”

The Company also announced that since its last update on March 12, 2003, it has purchased a crude oil floor for 30,000 barrels for May with a floor price of $26.55 per barrel.

Earnings Conference Call

Swift Energy Company will announce first quarter earnings results Wednesday, May 7, at 9:00 a.m. CDT. The dial-in number is 973-872-3462. Please dial-in five to ten minutes prior to the start of the call. A pass code is not required to participate in this call. The digital replay number is 973-341-3080 (Pin #3851829) and will be available until May 21, 2003. In addition, this call will be webcast 'live' and archived through our website at http://www.swiftnergy.com. 

Swift Energy Company 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. 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, or other statements other than statements of historical fact, are forward-looking statements. 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.