Swift Energy Implements Holding Company Structure

Swift Energy reports that effective December 28, 2005, it plans to implement a holding company structure pursuant to Texas law in a manner that does not require action by Swift Energy shareholders and is a nontaxable transaction. No exchange of Swift Energy Company stock certificates will take place. The new parent holding company will assume the Swift Energy Company name and continue to be traded on the New York Stock Exchange under the same ticker symbol "SFY" and its CUSIP number will remain the same. The purposes of this new holding company structure are to separate Swift Energy's domestic and international operations to better reflect management practices, to improve its economics, and to provide greater administrative and organizational flexibility.

Under the new organizational structure, four new subsidiaries will have been formed with the Texas parent holding company wholly owning three Delaware subsidiaries, which in turn will wholly own Swift Energy's operating subsidiaries. Swift Energy Operating, LLC will be the operator of record for Swift Energy's domestic properties. Swift Energy's name, charter, bylaws, officers, board of directors, authorized shares and shares outstanding will remain substantially identical. The Company's international operations will continue to be conducted through Swift Energy International, Inc. Swift Energy will be making amendments to its bank credit agreement, debt indentures and various other plans and documents to accommodate the internal reorganization, but the Company's day-to-day conduct of business will not be impacted.