Swift Energy Resumes Production at Lake Washington

Lake Washington
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Swift Energy reports that production has been restored at its Lake Washington Field in Louisiana to approximately 80% of pre-Katrina levels, and production at its Masters Creek Field in Louisiana and its Brookeland Field in Texas is expected to be restored to 100% of pre-Rita levels within a week. All three fields had been shut-in due to Hurricane Rita. Production remains shut-in at Swift Energy's Bay de Chene and Cote Blanche Island Fields in coastal Louisiana.

Crude oil production has been restored at Lake Washington from certain wells that produce through the 6700 and 212 production platforms. The gas lift system has also been restored in these two areas. Production from the CM3 production platform in the southern portion of the field is expected to be restored within the next two weeks along with the remaining portion of the gas lift system. While transportation and markets are accessible for oil production at this time, there continue to be downstream constraints on transportation and processing facilities for natural gas sales in this area. Swift Energy is currently using barges to transport its crude oil to market in this area and expects to have pipeline transportation available for it oil production within the next few weeks as well. The third-party owned natural gas pipeline that handles Swift Energy's natural gas production in Lake Washington is still not operating due to mechanical reasons as well as downstream processing limitations. Pre-hurricane sales of production of both oil and natural gas will not be possible from this field until transportation and processing is available for the associated natural gas production. Until such time, average net production levels of 11,000 to 12,000 barrels of oil equivalent per day are expected at Lake Washington. This represents approximately 80% of average production in this field during the two weeks prior to Hurricane Katrina.

Swift Energy has been notified by the operator of the Brookeland processing plant, which processes all of Swift Energy's Toledo Bend natural gas production, that temporary electrical power is now available, and the plant is coming back on line. As a result, Swift Energy is resuming production at it Brookeland Field and Masters Creek Field and expects to be at full rates within a week. Normal power is expected to be returned to service over the next two to five weeks. Net production from these two fields averaged approximately 15.0 million cubic feet per day for the two weeks immediately prior to Hurricane Rita.

The status of production from the Bay de Chene Field, in Jefferson and Lafourche Parishes in Louisiana, has not changed, and the field remains shut-in awaiting repairs from damage caused by Hurricane Katrina. Cote Blanche Island Field, in St. Mary's Parish, Louisiana, which had not suffered any damage from Hurricane Katrina, did suffer damage from Hurricane Rita, and a full assessment is now underway to determine the extent of such damage. It cannot be determined at this time when production in each of these fields will begin. Restoration of production in these fields is taking longer primarily because the Company has been focused on resuming production at its Lake Washington Field, which represented a larger portion of its total pre-hurricane production. Net production from these two fields averaged 6.0 million cubic feet equivalent per day during the two weeks immediately prior to Hurricane Katrina.

Drilling, completion and recompletion operations have resumed with two drilling rigs and one completion rig working in Lake Washington, and one completion rig working in Bay de Chene. A third drilling rig, which was damaged during Hurricane Katrina, is expected to return to the Lake Washington area by the mid-November 2005.


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