Swift Energy Earns Higher Prices from Gas and Oil

Swift Energy received an average crude oil price of US$57.61 (about NZ$85) per barrel from its New Zealand operations in the fourth quarter of 2005, a 21% increase over prices for the same period of 2004.

The Houston-based Swift Energy Company's fourth quarter report says that the average natural gas price received for its Taranaki contracts was US$3.05 (appriximately NZ$4.50) per Mcf for the fourth quarter in 2005, a 7% increase over the US$2.86 per Mcf (~NZ$4.20) received in the 2004 fourth quarter.

New Zealand gas price contracts are remitted in New Zealand dollars, which has remained strong during the fourth quarter 2005 against the U.S. dollar compared to the same period in 2004.

Total New Zealand production in 2005 was 16.6 billion cubic feet equivalent (Bcfe), up from 16.3 in 2004.

Fourth quarter 2005 production of 3.7 Bcfe in New Zealand was a 20% decrease from the same period in 2004. The production decrease was the result of natural declines in natural gas production, as well as additional crude oil lifting in the fourth quarter 2004 compared to the number of liftings in the fourth quarter 2005.

Swift Energy says that proved reserves at year-end 2005 declined by 20% to 118 Bcfe from 147 Bcfe at year-end 2004. The principal reason for the decline was that Swift Energy's drilling campaign was focused on development drilling and a resulting downward revision related to drilling results in the Kauri sands in the Rimu/Kauri area.

Swift Energy New Zealand had a successful development well and 3 unsuccessful exploration wells in the fourth quarter 2005.

In the company's guidance estimates for the 2006 year, Swift expects crude oil production from Taranaki to grow to about 500,000 bbls, and estimates that oil production will increase to between 115 - 125 MBbl in the first quarter of 2006 from actual production of 92 MBbl in the fourth quarter of 2005.

Natural gas and natural gas liquids production for 2006 is estimated to continue at similar rates to the 2005 final quarter, the guidance figures show.

Swift Energy Corporation's total US-New Zealand net income was a record US$34.7 million for the fourth quarter 2005, an increase of 29% compared to US$26.8 million earned in the same quarter of 2004.

The company also announced that it had appointed Ambassador Charles J. Swindells, formerly US Ambassador to New Zealand, as a director of the board. Previously he was involved in the Oregon investment industry.