Swift Energy in conjunction with Ballance Agri-Nutrients Limited reports that, Swift Energy New Zealand Limited has entered into a farm-in agreement with Ballance for 60% of Petroleum Exploration Permit 38742 in New Zealand. The 16,794 acre permit was previously held by GeoSphere Exploration Limited and is located onshore in the north-central Taranaki Basin. Under the terms of the contract, SENZ will become operator of the permit and anticipates drilling the Karaka #1 well targeting the shallow Mt. Messenger formation in the first-half of 2005. The farm-in agreement is subject to New Zealand government approval.