Swift Energy said its 2003 year proved reserves were estimated to have increased by 9.5% to 820 billion cubic feet equivalent (bcfe) compared to 749 bcfe at the end of 2002. This growth represented a reserves replacement figure of 233%, at a finding and development (F&D) cost of approximately $US1.23 per thousand cubic feet equivalent (mcfe).

Total capital expenditure for 2003 was approximately $US151 million, with the company's total production increasing by 7% to 53.2 bcfe (33.8 bcfe domestic and 19.4 bcfe for New Zealand), compared to the 2002 figure of 49.8 bcfe (34.3 bcfe domestic, 15.5 bcfe New Zealand).

"We are extremely proud of all that we accomplished in 2003. The success of our Lake Washington exploration and development program has added to the quality of our reserve and production base. We are also pleased with our progress in New Zealand, including our ongoing activities in the Kauri and Manutahi sands," company president Terry Swift said from Houston.

Swift's proved New Zealand reserves increased 13% during 2003 to approximately 176 bcfe at year-end, replacing 205% of kiwi production at an approximate F&D cost of $US0.78 per mcfe. This increase in proved reserves primarily resulted from Swift's activity in southern onshore Taranaki with the Kauri and Manutahi sands.

Swift Energy's total production for 2003 increased 7% to approximately 53.2 bcfe compared to the 49.8 bcfe of 2002. The average oil price received during the fourth quarter of 2003 was expected to exceed $US30 per barrel, both domestically and in New Zealand, while the gas price was estimated to exceed $US4.25 per mcf domestically and $US2.00 in New Zealand. Natural gas liquids were expected to exceed $US19.00 per barrel domestically and $US13.00 in New Zealand.

The company said total capital expenditure for 2004 was expected to be $US130-150 million, excluding any acquisitions. Approximately 80% of the budget was targeted for domestic activities, with the rest being allocated to New Zealand. Total production was estimated to increase by 11-17%, with proved reserves expected to increase by 5-8%.

Swift Energy New Zealand would be focusing on further delineation of and development of the Kauri, Manutahi and Tariki sands, with three to four wells targeting the intermediate depth Kauri Sand and four to six wells in the Manutahi sand.

The company also anticipated additional exploitation and exploration in the semi-mature Tariki, Ahuroa, Waihapa and Ngaere (Tawn) fields, targeting Tariki sands and deeper formations, further north in onshore Taranaki.