Swift Energy Tests Goss and Trapper Wells

New Zealand Crown Minerals

Swift Energy Company has begun testing the Goss and Trapper wells its TAWN fields.

Both of these Tarata Thrust project exploration projects, which Swift Energy is operator of, are being carried out in a 50% joint partnership with Auckland based energy company Mighty River Power.

Swift Energy said in its report that intermediate depth objectives were being tested at both wells. However the deeper objectives in both wells were deemed non-commercial.

The Trapper prospect is in the Ngaere field (PML 38141) and Goss in the Waihapa field (PML 38140).

The company has two rigs operating in New Zealand, one drilling a Waihapa prospect targeting the Tikorangi limestone (Waihapa 4 ST#1) and the other the Kowhai exploration well targeting several deep horizons.

Kowhai-1 in PEP 38742 in northern onshore Taranaki, in which Taranaki-based and natural gas-fed ammonia urea fertilizer company Petrochem Ltd is a 20% partner, began drilling in early July and is targeting Kapuni Group sands down to 5000m.

Swift Energy says in the report that it was unsuccessful with one development well that targeted the Kauri sands in the Kauri field PMP 38155 in the second quarter of 2006.

The company's production from its New Zealand operations in the second quarter was 3.2 billion cubic feet equivalent (Bcfe), a decrease of 20% from production in the same quarter of 2005 and down 17% from levels in the previous quarter due to reduced crude oil liftings in the second quarter 2006, scheduled facility maintenance and natural production declines.

Swift Energy says its New Zealand natural gas realized an average price of US$2.83 per Mcf for in the second quarter of 2006, a 7% decrease from the US$3.05 per Mcf received in the comparable 2005 period, and its natural gas liquids contracts yielded an average price of US$18.14 per barrel for the second quarter 2006 compared to US$19.30 per barrel in the second quarter of 2005 or a 6% decrease.

The report says the lower New Zealand natural gas and NGL prices were a function of being denominated in New Zealand dollars, which have been declining in 2006 against the U.S. dollar and do not reflect weakening gas prices.

The company's McKee blend crude oil sold for an average US$73.90 per barrel compared to US$50.82 per barrel in the same period in 2005.

Swift Energy Corporation says it increased its 2006 capital spending budget range to a new range of US$375 - $400 million from the previous range of US$325 - $375 million. No specific mention was made in the second quarter report of capital spending for its New Zealand operations.

Swift Energy Corporation says it recorded a net income of US$38.2 million for the second quarter of 2006 a 37% increase compared to US$27.9 million earned in the second quarter of 2005.