Total US and NZ production for the first quarter of 2004 was at least 14.1 billion cubic feet equivalent, an increase of 9% over the first quarter 2003 production (12.9 bcfe) and at least 5% more than that recorded during the last 2003 quarter (13.4 bcfe).

Domestic production increased to at least 10.3 bcfe, 33% greater than first quarter 2003 (7.7 bcfe), primarily because of increased production from the company’s Lake Washington operations.

However, New Zealand production (3.8 bcfe) slumped by almost 27% compared with first quarter 2003 (5.2 bcfe) and by 17% compared to last quarter 2003 (4.6 bcfe).

Low hydro lake levels a year ago meant Swift Energy New Zealand selling more gas to such thermal generators as Genesis Power. However, increased availability of hydroelectricity this year means short-term reductions in gas demand which SENZ expects to continue through the second quarter of 2004 at least.

Swift Energy’s average oil price was expected to exceed US$33 per barrel during the first quarter of 2004; while the company’s estimated average prices received for natural gas were expected to exceed US$4.75 per thousand cubic feet domestically and US$2.20 per mcf in NZ. Prices for natural gas liquids were expected to exceed US$19.00 per barrel domestically and US$14.00 per barrel in NZ.

Swift Energy New Zealand has successfully drilled the Kauri-E4 well, encountering both the Kauri and Tariki sands, with the well presently being completed as a Tariki sands producer. The first well in SENZ’s shallow Manutahi drilling program was scheduled to spud later this quarter.