Houston-based independent Swift Energy Co. has increased its 2003 capital budget by 15%, or $20 million, to accommodate additional development drilling, facility upgrades and initial 3-D seismic work in fields located in Louisiana and New Zealand.

The new $150 million budget will give Swift more capital for its Lake Washington Field located in Plaquemines Parish, LA, as well as allow additional drilling and exploitation activity in New Zealand. The increase, said the company, is supported by recent operational successes and higher than anticipated cash flow in 2003, both domestically and in New Zealand.

Swift reported that production from its interests in the Lake Washington Field averaged more than 8,500 gross (7,000 net) boe/d in June. The budget increase will be used in part to increase the facility capacity at Lake Washington to approximately 20,000 gross boe/d. Facility upgrades also are on schedule and are expected to be completed during the fourth quarter.

The increased capital budget also enables Swift to drill between 60 and 70 wells in Lake Washington during 2003, or approximately 10 more wells than previously reported. Swift also is considering shooting 3-D seismic over a portion of the field.

Since its last report in early June, Swift has drilled seven additional wells in Lake Washington, all of which are awaiting completion operations and/or installation of flow lines. The company has successfully drilled 28 out of 34 wells in the Lake Washington Field this year for an 82% success rate, with a 100% success rate during the second quarter. An exploration well drilled in this area during the second quarter, which reached a total true vertical depth of 3,486 feet in a deviated hole, found approximately 72 feet of net pay (true vertical depth) and had pipe successfully set.

Its CM# 263 well, which was drilled as a deviated hole in the Lake Washington field on the southeast side of the salt dome, encountered approximately 222 feet of net pay (true vertical depth) in seven sands, including the F sand (77 feet net pay true vertical depth).

In the AWP/Olmos area located in McMullen County, TX, Swift also has finished drilling four natural gas wells of a 10-well 2003 program within its Entity for Density (EFD) permit. The EFD permit effectively allows Swift to further down space well locations and test new infill wells on 20-acre spacing. All four wells have been successfully drilled, two have been successfully completed and fracture stimulated and the other two are awaiting fracture stimulations. A drilling rig is scheduled to return later this year to resume drilling for natural gas in AWP.

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