Total quarterly production of 13.3 billion cubic feet equivalent (“Bcfe”), including both domestic (8.5 Bcfe) and New Zealand (4.8 Bcfe) production, reached record levels. This is an increase of 5% from the 12.7 Bcfe (8.9 Bcfe domestic and 3.8 Bcfe New Zealand) reported in the second quarter of 2002. Production growth in the second quarter of 2003 resulted predominately from additional production at Lake Washington and in New Zealand. Total production in the second quarter of 2003 increased 3% from 12.9 Bcfe in the first quarter of 2003.

Total revenues for the second quarter totaled $50.7 million, an increase of 31% from revenues of $38.6 million during the second quarter of 2002. Cash flow before changes in working capital (a non-GAAP measure) increased 32% to $26.7 million ($0.98 per diluted share) in the second quarter of 2003, compared to $20.3 million ($0.75 per diluted share) in the second quarter of 2002. Net cash provided by operating activities for the second quarter 2003 was $26.7 million compared to $24.8 million for the 2002 period. (See the accompanying schedules for a reconciliation of GAAP to non-GAAP measures.)

Terry Swift, President and CEO of Swift Energy Company, noted, “The second quarter results demonstrate the continued improvement in the quality of our reserves and production base as well as our ability to deliver organic growth. We are making good progress toward accomplishing our strategic and operational goals for 2003. Supported by our increasing production, we believe we will reduce our unit costs by year-end. We also believe that the momentum we are creating with our drilling program will lead us into another year of drill-bit oriented reserves and production growth in 2004.”

Six-Month Results

Through the first six months of 2003, production totaled 26.1 Bcfe, an increase of 5% from 25.0 Bcfe seen last year for the same period. Total revenues for the first six months of 2003 were $104.2 million, up 43% from $72.9 million during the same period last year. During the first half of 2003, net income before accounting change (excluding the effect of SFAS 143 implemented January 1, 2003) increased 168% to $17.7 million ($0.65 per diluted share) from $6.6 million ($0.25 per diluted share) in the first half of 2002. Net income during this same period was $13.3 million or $0.49 per diluted share including the cumulative effect of this accounting change. Cash flow before changes in working capital (a non-GAAP measure) increased 84% in the first half of 2003 to $58.4 million ($2.13 per diluted share) from $31.7 million ($1.21 per diluted share) in the same period in 2002. Net cash provided by operating activities for the first half of 2003 increased 50% to $53.5 million ($1.96 per diluted share) from $35.6 million ($1.36 per diluted share) in the 2002 period. Increased revenues, net income and cash flow in 2003 are primarily the result of higher commodity prices, plus our increased production.

Expenses

Lease operating expenses, before severance and ad valorem taxes, were $0.69 per thousand cubic feet equivalent (“Mcfe”) during the second quarter of 2003, an increase of 25% compared to $0.55 per Mcfe in the same quarter of 2002. The increase was predominately due to significant Lake Washington facility enhancements and workovers during the quarter, as well as scheduled plant shut-downs for maintenance in New Zealand. General and administrative costs increased to $0.25 per Mcfe during this quarter compared to $0.20 per Mcfe in the same quarter of 2002. This increase was mainly attributable to front-end costs associated with the increased activity at Lake Washington, continued transition away from partnerships and corporate governance expenses. Depreciation, depletion and amortization was $1.18 per Mcfe in the second quarter 2003 compared to $1.13 per Mcfe in the comparable quarter last year, and interest expense was $0.50 per Mcfe compared to $0.48 per Mcfe for the same periods. Also, severance and ad valorem taxes were up appreciably due to higher commodity prices.

Production

Domestic production increased 10% to 8.5 Bcfe from first quarter 2003 production of 7.7 Bcfe, demonstrating growth for the second consecutive quarter. Domestic production during the second quarter of 2003 decreased 4% from production of 8.9 Bcfe during the second quarter of 2002. Crude oil accounted for 48% of domestic volumes in the second quarter of 2003, with 42% coming from natural gas and 10% from natural gas liquids.

In New Zealand, Swift Energy New Zealand (“SENZ”) produced 4.8 Bcfe in the second quarter 2003, a 26% increase over production in the same quarter last year. Production was down 7% from first quarter 2003 levels primarily as a result of scheduled plant maintenance at both the TAWN and Rimu processing facilities. Natural gas accounted for 73% of these volumes produced in New Zealand.

Combined production volumes for the second quarter 2003 from both domestic and New Zealand activities were 53% natural gas, 37% crude oil and 10% natural gas liquids.

Pricing

Commodity prices for the second quarter were down compared to prices in the first quarter of 2003 but were up substantially over prices in the second quarter in 2002. Realized domestic natural gas prices received in the second quarter of 2003 were $5.15 per thousand cubic feet (“Mcf”), up 46% from $3.53 per Mcf received in the second quarter of 2002, but down 15% from prices in the first quarter of 2003. Similarly, average domestic crude oil prices in the second quarter this year were down 14% to $28.25 per barrel compared to prices in the first quarter of 2003, but 12% higher than prices for the same quarter last year. Domestic prices for natural gas liquids also increased when compared to those in the comparable period last year, with a composite average domestic price of $4.71 per Mcfe for the second quarter of 2003, which was 34% more than the $3.52 per Mcfe received in the same quarter of 2002.

In New Zealand, SENZ has seen its average realized price increase for six straight quarters due to a combination of higher crude oil prices in some quarters, a beneficial currency exchange rate during this period and additional natural gas sales above minimum contract amounts in a tightening New Zealand gas market. The composite average price for New Zealand in the second quarter 2003 was $2.28 per Mcfe, a 23% increase over prices received in the second quarter of the previous year. Similar increases over prices received in the same quarter last year were seen on an individual product basis, with SENZ receiving an average price of $1.75 per Mcf for its natural gas in the second quarter of 2003, a 29% increase from $1.36 received in the second quarter of 2002; $26.68 per barrel of crude oil in the second quarter of 2003, up 7% from $25.01 per barrel averaged in the 2002 period; and $13.36 per barrel for natural gas liquids in the second quarter of 2003, a 19% increase from $11.18 per barrel averaged in the second quarter of 2002.

Domestic Operations

Swift Energy successfully drilled all 19 wells in the second quarter, with all but five of these successful wells drilled in the Lake Washington Field. Two of the 19 wells were exploration wells. Four wells were drilled in the AWP Olmos area in McMullen County, Texas and one non-operated well was drilled in the Garcia Ranch area of Kenedy County, Texas. Since the end of the second quarter the company has drilled four additional wells. Three of the wells were in the Lake Washington Field, with one being unsuccessful. The fourth was an unsuccessful well in the Garcia Ranch area. Year-to-date, the Company has successfully drilled 34 of 42 wells domestically, for an overall success ratio of 81%. Currently, the Company is drilling two wells in the Lake Washington area and plans to commence further drilling operations in the Garcia Ranch area, AWP Olmos area and the Brookeland Field in Newton County, Texas later in the third quarter.

Swift Energy also reported that production from its interests in the Lake Washington Field averaged over 8,500 gross (7,000 net) barrels of oil per day for the month of July 2003. As previously announced on July 8, 2003, an increase of approximately 15% in the Company’s capital budget will be used in part to increase the facility capacity at Lake Washington to approximately 20,000 gross barrels per day. Facility upgrades are continuing on schedule in the field and are expected to be completed during the fourth quarter. The Company plans to drill a total of 60 to 70 wells in the Lake Washington area during 2003.

New Zealand Operations

In New Zealand, the Kauri-A4 well began producing into the Rimu Production Station (“RPS”) in mid-July. This well is currently producing at a rate of approximately 3,000 Mcf and 140 barrels of condensate per day from the Kauri Sand. The Kauri-E1 well was drilled during the second quarter to a depth of approximately 8,777 feet true vertical depth in a deviated hole and encountered the Kauri Sand. Pipe has been set in the Kauri-E1 well, and it will be fracture stimulated later this quarter. The Kauri-E2 well, also targeting the Kauri Sand, is now drilling and expected to be completed this month. Following the drilling and completion of this well, a fracture stimulation program is planned to improve production from the Rimu/Kauri area. Re-entry of the Tuihu exploration well is planned for the second half of the year targeting the Tariki Sands. Swift will operate this well and has a 50% working interest.

As previously announced, SENZ has entered into a new agreement with Genesis Power for the sale to Genesis of up to 8 petajoules of natural gas (approximately 7.2 billion cubic feet) per year over a three-year period beginning July 8, 2003. The natural gas deliveries will be used by Genesis Power at its Huntly Power Station, New Zealand's largest thermal power station.

Price Risk Management

Swift Energy also announced that since its last update on July 8, it has continued to enter into additional price risk management transactions. The Company recently purchased additional crude oil floors, which cover 60,000 barrels in September and October and 30,000 barrels in November, all at a strike price of $27.50 per barrel.

Earnings Conference Call

Swift Energy Company will announce second quarter earnings results today, August 6, 2003 at 9:00 a.m. CDT via a conference call. The dial-in number is 973-339-3086. 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# 4017983) and will be available until August 14, 2003. In addition, this call will be webcast 'live' and archived through our website at http://www.swiftenergy.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.