UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                 --------------

                                    FORM 10-Q
                                 --------------

           (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE


                         SECURITIES EXCHANGE ACT OF 1934

                For the Quarterly Period Ended September 30, 2005

                          Commission File Number 1-8754
                                 --------------
                              SWIFT ENERGY COMPANY
             (Exact Name of Registrant as Specified in its Charter)
                                 --------------

            TEXAS                                      74-2073055
     (State of Incorporation)              (I.R.S. Employer Identification No.)
16825 Northchase Drive, Suite 400

                              Houston, Texas 77060
               (Address of principal executive offices) (Zip Code)

                                 (281) 874-2700
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
                                 Yes |X| No |_|

Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act). Yes |X| No |_|

Indicate the number of shares  outstanding  of each of the  Issuer's  classes of
common stock, as of the latest practicable date.


            Common Stock                          28,707,472 Shares
          ($.01 Par Value)                (Outstanding at October 31, 2005)
          (Class of Stock)


                                       1







                              SWIFT ENERGY COMPANY

                                    FORM 10-Q

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2005


                                      INDEX




PART I.          FINANCIAL INFORMATION                                                                           PAGE
                                                                                                             
                    Item 1.    Condensed Consolidated Financial Statements

                               Condensed Consolidated Balance Sheets                                                3
                               - September 30, 2005 and December 31, 2004

                               Condensed Consolidated Statements of Income                                          4
                               - For the Three month and Nine month periods ended September 30,
                               2005 and 2004

                               Condensed Consolidated Statements of Stockholders' Equity                            5
                               - For the Nine month  period ended September 30, 2005 and
                                 year ended December 31, 2004

                               Condensed Consolidated Statements of Cash Flows                                      6
                               - For the Nine month periods ended September 30, 2005 and 2004

                               Notes to Condensed Consolidated Financial Statements                                 7

                    Item 2.    Management's Discussion and Analysis of Financial Condition                         20
                                 and Results of Operations

                    Item 3.    Quantitative and Qualitative Disclosures About Market Risk                          34

                    Item 4.    Controls and Procedures                                                             35

PART II.         OTHER INFORMATION

                    Item 1.    Legal Proceedings                                                                   36
                    Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds                       None
                    Item 3.    Defaults Upon Senior Securities                                                   None
                    Item 4.    Submission of Matters to a Vote of Security Holders                                 36
                    Item 5.    Other Information                                                                   36
                    Item 6.    Exhibits                                                                            37

SIGNATURES                                                                                                         38



                                       2





                      CONDENSED CONSOLIDATED BALANCE SHEETS
                              SWIFT ENERGY COMPANY


                                                                September 30, 2005      December 31, 2004
                                                                -------------------    -------------------
                                                   ASSETS
                                                                                 
Current Assets:
      Cash and cash equivalents                                 $        65,884,410    $         4,920,118
      Accounts receivable -
           Oil and gas sales                                             26,033,786             38,021,693
           Joint interest owners                                            620,836                960,395
           Other receivables                                              4,364,492                 61,259
      Other current assets                                               12,711,468             10,422,531
                                                                -------------------    -------------------
                          Total Current Assets                          109,614,992             54,385,996
                                                                -------------------    -------------------

Property and Equipment:
      Oil and gas, using full-cost accounting
            Proved properties being amortized                         1,628,673,729          1,479,681,903
            Unproved properties not being amortized                      88,930,610             80,121,509
                                                                -------------------    -------------------
                                                                      1,717,604,339          1,559,803,412
Furniture, Fixtures, and Other Equipment                                 13,937,524             12,820,622
                                                                -------------------    -------------------
                                                                      1,731,541,863          1,572,624,034
Less-Accumulated Depreciation, Depletion, and Amortization             (724,883,856)          (649,185,874)
                                                                -------------------    -------------------
                                                                      1,006,658,007            923,438,160
                                                                -------------------    -------------------
Other Assets:
      Deferred income taxes                                                     ---              1,666,058
      Debt issuance costs                                                 8,315,219              9,148,977
      Restricted assets                                                   1,906,356              1,933,956
                                                                -------------------    -------------------
                                                                         10,221,575             12,748,991
                                                                -------------------    -------------------
                                                                $     1,126,494,574    $       990,573,147
                                                                ===================    ===================

                                    LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
      Accounts payable and accrued liabilities                  $        30,090,850    $        29,406,877
      Accrued capital costs                                              32,993,814             22,489,467
      Accrued interest                                                   10,336,338              9,209,192
      Undistributed oil and gas revenues                                  8,690,801              7,512,755
                                                                -------------------    -------------------
                          Total Current Liabilities                      82,111,803             68,618,291

Long-Term Debt                                                          350,000,000            357,500,000
Deferred Income Taxes                                                   111,618,430             73,106,580
Asset Retirement Obligation                                              16,565,580             17,176,136
Lease Incentive Obligation                                                  177,530                    ---

Commitments and Contingencies

Stockholders' Equity:
      Preferred stock, $.01 par value, 5,000,000
            shares authorized, none outstanding                                 ---                    ---
      Common stock, $.01 par value, 85,000,000 share
      authorized,
            29,155,556 and 28,570,632 shares issued, and
            28,706,112 and 28,089,764 shares
            outstanding, respectively                                       291,556                285,706
      Additional paid-in capital                                        359,240,234            343,536,298
      Treasury stock held, at cost, 449,444 and
            480,868 shares, respectively                                 (6,445,586)            (6,896,245)
Unearned Compensation                                                    (6,527,242)            (1,728,585)
Retained Earnings                                                       219,602,010            138,524,301
Accumulated Other Comprehensive Income (Loss), Net of Taxes                (139,741)               450,665
                                                                -------------------    -------------------
                                                                        566,021,231            474,172,140
                                                                -------------------    -------------------
                                                                $     1,126,494,574    $       990,573,147
                                                                ===================    ===================


          See accompanying notes to condensed consolidated financial statements.


                                       3





                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                              SWIFT ENERGY COMPANY




                                                       Three Months Ended               Nine Months Ended
                                                  ------------------------------  -------------------------------
                                                    09/30/05         09/30/04        09/30/05         09/30/04
                                                  -------------   --------------  --------------  ---------------
                                                                                       
Revenues:
  Oil and gas sales                               $ 101,007,524   $  74,653,106   $  301,451,257  $   212,431,665
  Price-risk management and other, net                 (154,019)        289,645         (677,143)      (1,089,449)
                                                  -------------   --------------  --------------  ---------------
                                                    100,853,505      74,942,751      300,774,114      211,342,216
                                                  -------------   --------------  --------------  ---------------

Costs and Expenses:
  General and administrative, net                     5,803,946       4,390,432       15,674,141       12,595,665
  Depreciation, depletion and amortization           23,870,287      19,845,167       76,853,296       57,649,907
  Accretion of asset retirement obligation              191,529         168,135          565,531          498,870
  Lease operating costs                              12,221,153       9,848,949       34,835,158       29,910,742
  Severance and other taxes                           9,670,565       7,077,994       29,582,400       20,251,822
  Interest expense, net                               6,194,370       7,317,002       18,825,273       21,361,566
  Debt retirement cost                                      ---       6,822,476              ---        9,513,719
                                                  -------------   --------------  --------------  ---------------
                                                     57,951,850      55,470,155      176,335,799      151,782,291
                                                  -------------   --------------  --------------  ---------------

Income Before Income Taxes                           42,901,655      19,472,596      124,438,315       59,559,925

Provision for Income Taxes                           15,394,756       5,341,879       43,360,606       17,943,427

                                                  -------------   --------------  --------------  ---------------
        Net Income                                $  27,506,899   $  14,130,717   $   81,077,709  $    41,616,498
                                                  =============   ==============  ==============  ===============

Per Share Amounts

        Basic:  Net Income                        $        0.96   $         0.51  $         2.86  $          1.50
                                                  =============   ==============  ==============  ===============

        Diluted:  Net Income                      $        0.92   $         0.50  $         2.77  $          1.47
                                                  =============   ==============  ==============  ===============

Weighted Average Shares Outstanding                  28,632,895       27,948,095      28,390,120       27,747,789
                                                  =============   ==============  ==============  ===============


     See accompanying notes to condensed consolidated financial statements.


                                       4





            CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                              SWIFT ENERGY COMPANY


                                                     Additional                                           Other
                                           Common     Paid-In      Treasury     Unearned     Retained   Comprehensive
                                          Stock(1)    Capital       Stock     Compensation   Earnings   Income (Loss)    Total
                                         ---------- ------------ ------------ ------------ ----------- -------------- -------------
                                                                                                 
Balance December 31, 2003                $  280,111 $334,865,204 $ (7,558,093)$        --- $ 70,073,384 $    (269,342)$ 397,391,264
                                         ========== ============ ============ ============ ============ ============= =============

Stock issued for benefit plans (46,150
   shares)                                      ---      166,298      661,848          ---          ---           ---       828,146
Stock options exercised (509,105 shares)      5,091    4,260,882          ---          ---          ---           ---     4,265,973
Tax benefits from exercise of stock
   options                                      ---    1,956,555          ---          ---          ---           ---     1,956,555
Employee stock purchase plan (50,418
   shares)                                      504      502,097          ---          ---          ---           ---       502,601
Issuance of restricted stock                    ---    1,785,262          ---   (1,785,262)         ---           ---           ---
Amortization of restricted stock                ---          ---          ---       56,677          ---           ---        56,677
Net income                                      ---          ---          ---          ---   68,450,917           ---    68,450,917
Other comprehensive income                      ---          ---          ---          ---          ---       720,007       720,007
                                                                                                                      -------------
       Total Comprehensive Income                                                                                        69,170,924
                                         ---------- ------------ ------------ ------------ ------------ ------------- -------------
Balance December 31, 2004                $  285,706 $343,536,298 $ (6,896,245)$ (1,728,585 $138,524,301 $     450,665 $ 474,172,140
                                         ======================= ============ ============ ============ ============= =============


Stock issued for benefit plans (31,424
   shares)                                      ---      435,134      450,659          ---          ---           ---       885,793
Stock options exercised (538,488 shares)      5,386    5,810,358          ---          ---          ---           ---     5,815,744
Tax benefits from exercise of stock
   options                                      ---    2,625,563          ---          ---          ---           ---     2,625,563
Employee stock purchase plan (31,436
   shares)                                      314      642,354          ---          ---          ---           ---       642,668
Issuance of restricted stock (15,000
   shares)                                      150    6,229,557          ---   (5,766,426)         ---           ---       463,281
Forfeitures of restricted stock                 ---      (39,030)         ---       39,030          ---           ---           ---
Amortization of restricted stock                ---          ---          ---      928,739          ---           ---       928,739
Net income                                      ---          ---          ---          ---   81,077,709           ---    81,077,709
Other Comprehensive Loss                        ---          ---          ---          ---          ---      (590,406)     (590,406)
                                                                                                                       ------------
       Total Comprehensive Income                                                                                        80,487,303
                                         ---------- ------------ ------------ ------------ ------------ ------------- -------------
Balance September 30, 2005               $  291,556 $359,240,234 $ (6,445,586)$ (6,527,242)$219,602,010 $    (139,741)$ 566,021,231
                                         ========== ============ ============ ============ ============ ============= =============


(1) $.01 Par Value



     See accompanying notes to condensed consolidated financial statements.


                                       5





                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              SWIFT ENERGY COMPANY



                                                                         Period Ended September 30,
                                                                --------------------   -------------------
                                                                         2005                   2004
                                                                --------------------   -------------------
                                                                                 
Cash Flows From Operating Activities:
  Net income                                                    $         81,077,709   $        41,616,498
  Adjustments to reconcile net income to net cash provided
      by operating activities -
    Depreciation, depletion, and amortization                             76,853,296            57,649,907
    Accretion of asset retirement obligation                                 565,531               498,870
    Deferred income taxes                                                 42,610,606            17,534,427
    Debt retirement cost                                                         ---             9,513,719
    Other                                                                  2,324,132               839,048
    Change in assets and liabilities -
      (Increase) decrease  in accounts receivable                         15,162,260            (5,940,575)
      Increase in accounts payable and accrued liabilities                   739,152             2,402,826
      Increase in accrued interest                                         1,127,146             2,304,843
                                                                --------------------   -------------------
        Net Cash Provided by Operating Activities                        220,459,832           126,419,563
                                                                --------------------   -------------------

Cash Flows From Investing Activities:
  Additions to property and equipment                                   (158,125,266)         (128,499,752)
  Proceeds from the sale of property and equipment                         2,387,293             1,411,554
  Net cash distributed as operator of oil and gas properties              (2,183,944)           (3,910,392)
  Net cash received (distributed) as operator of  partnerships             (467,534)                81,254
  Other                                                                       64,480              (101,164)
                                                                --------------------   -------------------

        Net Cash Used in Investing Activities                           (158,324,971)         (131,018,500)
                                                                --------------------   -------------------

Cash Flows From Financing Activities:
  Proceeds from long-term debt                                                   ---           150,000,000
  Payments of long-term debt                                                     ---          (125,000,000)
  Net payments of bank borrowings                                         (7,500,000)           (9,700,000)
  Net proceeds from issuances of common stock                              6,329,431             3,559,781
  Payments of debt retirement costs                                              ---            (6,712,062)
  Payments of debt issuance costs                                                ---            (4,333,535)
                                                                --------------------   -------------------

        Net Cash Provided by (Used in) Financing Activities               (1,170,569)            7,814,184
                                                                --------------------   -------------------


Net Increase in Cash and Cash Equivalents                       $         60,964,292   $         3,215,247
                                                                =====================  ====================

Cash and Cash Equivalents at Beginning of Period                           4,920,118             1,066,280
                                                                ---------------------  --------------------

Cash and Cash Equivalents at End of Period                      $         65,884,410   $         4,281,527
                                                                ====================   ===================


Supplemental Disclosures of Cash Flow Information:


Cash Paid During Period for Interest, Net of Amounts Capitalized$         16,887,396   $        18,200,440
Cash Paid During Period for Income Taxes                        $            750,000   $           409,000


     See accompanying notes to condensed consolidated financial statements.


                                       6





              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                              SWIFT ENERGY COMPANY


(1)  General Information

              The condensed  consolidated  financial  statements included herein
         have been  prepared  by Swift  Energy  Company  and  reflect  necessary
         adjustments,  all of which were of a recurring  nature,  and are in the
         opinion of our management  necessary for a fair  presentation.  Certain
         information  and footnote  disclosures  normally  included in financial
         statements prepared in accordance with accounting  principles generally
         accepted in the United  States have been omitted  pursuant to the rules
         and regulations of the Securities and Exchange  Commission.  We believe
         that the  disclosures  presented are adequate to allow the  information
         presented not to be misleading.  The condensed  consolidated  financial
         statements  should be read in  conjunction  with the audited  financial
         statements  and the notes thereto  included in the latest Form 10-K and
         Annual Report.

(2)  Summary of Significant Accounting Policies

         Property and Equipment

              We follow the  "full-cost"  method of  accounting  for oil and gas
         property and  equipment  costs.  Under this method of  accounting,  all
         productive  and  nonproductive   costs  incurred  in  the  exploration,
         development,  and acquisition of oil and gas reserves are  capitalized.
         Such costs may be incurred both prior to and after the acquisition of a
         property and include lease  acquisitions,  geological  and  geophysical
         services, drilling,  completion, and equipment. Internal costs incurred
         that  are  directly  identified  with  exploration,   development,  and
         acquisition  activities undertaken by us for our own account, and which
         are not related to production,  general corporate overhead,  or similar
         activities,  are also capitalized.  For the nine months ended September
         30,  2005 and 2004,  such  internal  costs  capitalized  totaled  $13.4
         million  and  $9.6  million,  respectively.  Interest  costs  are  also
         capitalized  to unproved  oil and gas  properties.  For the nine months
         ended  September  30, 2005 and 2004,  capitalized  interest on unproved
         properties  totaled  $5.3  million  and  $4.7  million,   respectively.
         Interest not capitalized and general and  administrative  costs related
         to production and general overhead are expensed as incurred.

              No gains or losses are recognized  upon the sale or disposition of
         oil and gas properties,  except in transactions involving a significant
         amount of reserves or where the  proceeds  from the sale of oil and gas
         properties  would   significantly   alter  the   relationship   between
         capitalized  costs and proved reserves of oil and gas attributable to a
         cost center.  Internal  costs  associated  with selling  properties are
         expensed as incurred.

              Future development costs are estimated  property-by-property based
         on current  economic  conditions  and are  amortized  to expense as our
         capitalized oil and gas property costs are amortized.

              We  compute  the  provision  for  depreciation,   depletion,   and
         amortization    ("DD&A")   of   oil   and   gas   properties   by   the
         unit-of-production  method. Under this method, we compute the provision
         by   multiplying   the   total   unamortized   costs  of  oil  and  gas
         properties--including   future   development   costs,   gas  processing
         facilities,  and both  capitalized  asset  retirement  obligations  and
         undiscounted  abandonment costs of wells to be drilled,  net of salvage
         values, but excluding costs of unproved  properties--by an overall rate
         determined  by  dividing  the  physical  units of oil and gas  produced
         during  the period by the total  estimated  units of proved oil and gas
         reserves at the beginning of the period.  This calculation is done on a
         country-by-country  basis,  and the period over which we will  amortize
         these  properties is dependent on our production from these  properties
         in future years. Furniture,  fixtures, and other equipment, recorded at
         cost, are depreciated by the straight-line method at rates based on the
         estimated  useful lives of the property,  which range between three and
         20 years.  Repairs and  maintenance are charged to expense as incurred.
         Renewals and betterments are capitalized.

              Geological  and  geophysical  ("G&G") costs  incurred on developed
         properties are recorded in "Proved properties" and therefore subject to
         amortization.  G&G costs  incurred  that are directly  associated  with
         specific unproved  properties are capitalized in "Unproved  properties"
         and evaluated as part of the total  capitalized costs associated with a
         prospect.

              The cost of unproved  properties  not being  amortized is assessed
         quarterly,  on a  country-b-country  basis,  to determine  whether such
         properties have been impaired. In determining whether such costs should


                                       7





         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Continued
                              SWIFT ENERGY COMPANY


         be impaired,  we evaluate  current drilling  results,  lease expiration
         dates, current oil and gas industry conditions,  international economic
         conditions, capital availability,  foreign currency exchange rates, and
         available  geological  and  geophysical  information.   Any  impairment
         assessed is added to the cost of proved properties being amortized.  To
         the extent  costs  accumulate  in  countries  where there are no proved
         reserves, any costs determined by management to be impaired are charged
         to expense.

         Full-Cost Ceiling Test

              At the end of each quarterly  reporting  period,  the  unamortized
         cost of oil and gas properties  (including  gas processing  facilities,
         capitalized asset retirement obligations, net of related salvage values
         and  deferred  income  taxes,   and  excluding  the  recognized   asset
         retirement obligation liability) is limited to the sum of the estimated
         future net revenues  from proved  properties  (excluding  cash outflows
         from  recognized   asset  retirement   obligations,   including  future
         development  and  abandonment  costs  of  wells  to be  drilled,  using
         period-end prices,  adjusted for the effects of hedging,  discounted at
         10%,  and the  lower  of cost or fair  value  of  unproved  properties)
         adjusted for related income tax effects ("Ceiling Test"). Our hedges at
         September 30, 2005  consisted of natural gas and crude oil price floors
         with strike  prices  lower than the  period-end  price and thus did not
         materially affect prices used in this calculation.  This calculation is
         done on a country-by-country basis.

              The  calculation  of the Ceiling  Test and  provision  for DD&A is
         based on estimates of proved reserves. There are numerous uncertainties
         inherent in estimating  quantities of proved reserves and in projecting
         the future rates of production,  timing,  and plan of development.  The
         accuracy  of any  reserves  estimate  is a function  of the  quality of
         available data and of engineering  and  geological  interpretation  and
         judgment.  Results of drilling,  testing, and production  subsequent to
         the  date of the  estimate  may  justify  revision  of such  estimates.
         Accordingly, reserves estimates are often different from the quantities
         of oil and gas that are ultimately  recovered.  Our reserves  estimates
         are prepared in  accordance  with  Securities  and Exchange  Commission
         guidelines;  and,  are audited on an annual basis at year-end by a firm
         of  independent   petroleum  engineers  in  accordance  with  standards
         approved  by the  Board  of  Directors  of  the  Society  of  Petroleum
         Engineers.

              Given  the  volatility  of oil and gas  prices,  it is  reasonably
         possible  that our  estimate of  discounted  future net cash flows from
         proved oil and gas reserves  could change in the near term.  If oil and
         gas prices decline from our period-end prices used in the Ceiling Test,
         even  if  only  for a  short  period,  it  is  possible  that  non-cash
         write-downs of oil and gas properties could occur in the future.

         Principles of Consolidation

              The accompanying  consolidated  financial  statements  include the
         accounts of Swift  Energy  Company and its wholly  owned  subsidiaries,
         which are engaged in the  exploration,  development,  acquisition,  and
         operation  of oil and  natural gas  properties,  with a focus on inland
         waters and onshore oil and natural gas reserves in Louisiana and Texas,
         as well as oil and natural gas reserves in New Zealand.  Our  undivided
         interests in gas processing  plants, and investments in six oil and gas
         limited partnerships where we are the general partner are accounted for
         using the proportionate consolidation method, whereby our proportionate
         share of each entity's assets, liabilities,  revenues, and expenses are
         included  in  the  appropriate   classifications  in  the  accompanying
         consolidated   financial   statements.    Intercompany   balances   and
         transactions   have  been  eliminated  in  preparing  the  accompanying
         consolidated financial statements.

         Revenue Recognition

              Oil and gas revenues are recognized  when  production is sold to a
         purchaser at a fixed or determinable  price, when delivery has occurred
         and title has  transferred,  and if  collectibility  of the  revenue is
         probable.  Processing  costs for  natural  gas and  natural gas liquids
         ("NGLs") that are paid in-kind are deducted from revenues.  The Company
         uses  the  entitlement  method  of  accounting  in  which  the  Company
         recognizes  its ownership  interest in  production  as revenue.  If our
         sales  exceed  our  ownership  share of  production,  the  natural  gas
         balancing  payables  are  reported  in  "Accounts  payable  and accrued
         liabilities" on the accompanying  balance sheet.  Natural gas balancing
         receivables are reported in "Other current assets" on the  accompanying
         balance sheet when our ownership share of production  exceeds sales. As
         of  September  30,  2005,  we did not have  any  material  natural  gas
         imbalances.


                                       8





         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Continued
                              SWIFT ENERGY COMPANY


         Accounts Receivable

              Included in the "Accounts receivable" balance, which totaled $39.0
         million at December 31, 2004, on the accompanying  balance sheets, were
         approximately  $2.3  million  of  receivables  related  to  hydrocarbon
         volumes  produced from 2001 and 2002 that had been disputed since early
         2003. As a result of the dispute,  we did not record a receivable  with
         regard to any 2003 disputed  volumes and our contract  governing  these
         sales expired in 2003. Based on settlement discussions,  we settled our
         claim with this  counter-party in July 2005 by receiving a cash payment
         for less than our gross receivable.  Accordingly, in the second quarter
         of 2005, we increased our reserve for this claim by approximately  $0.6
         million, which is recorded in "Price-risk management and other, net" on
         the accompanying statements of income.

              We assess the collectibility of accounts receivable,  and based on
         our judgment,  we accrue a reserve when we believe a receivable may not
         be  collected.  At September  30, 2005 and December 31, 2004, we had an
         allowance  for  doubtful  accounts  of less than $0.1  million and $0.5
         million,  respectively.  The allowance  for doubtful  accounts has been
         deducted  from  the  total  "Accounts   receivable"   balances  on  the
         accompanying balance sheets.

         Inventories

              We value inventories at the lower of cost or market value. Cost of
         crude oil inventory is determined using the weighted average method and
         all other  inventory  is  accounted  for using the first in,  first out
         method  ("FIFO").  The  major  categories  of  inventories,  which  are
         included in "Other current assets" on the accompanying  balance sheets,
         are shown as follows:



                                                Balance at           Balance at
                                            September 30, 2005    December 31, 2004
                                                  (000's)              (000's)
                                            ------------------   -------------------
                                                           
    Materials, Supplies and  Tubulars       $            7,726   $             6,417
    Crude Oil                                              711                   770
                                            ------------------   -------------------
                Total                       $            8,437   $             7,187
                                            ==================   ===================




         Use of Estimates

              The  preparation  of  financial   statements  in  conformity  with
         accounting  principles  generally  accepted in the United States (GAAP)
         requires us to make estimates and assumptions  that affect the reported
         amount of certain assets and  liabilities  and the reported  amounts of
         certain revenues and expenses during each reporting  period. We believe
         our estimates and assumptions are reasonable;  however,  such estimates
         and assumptions are subject to a number of risks and uncertainties that
         may cause  actual  results to differ  materially  from such  estimates.
         Significant estimates underlying these financial statements include:

         o        the estimated quantities of proved oil and natural gas
                  reserves used to compute depletion of oil and natural gas
                  properties and the related present value of estimated future
                  net cash flows there-from,

         o        accruals related to oil and gas revenues, capital expenditures
                  and lease operating expenses,

         o        the estimated future cost and timing of asset retirement
                  obligations, and

         o        estimates made in our income tax calculations.



              While we are not  aware of any  material  revisions  to any of our
         estimates,  there  will  likely be future  revisions  to our  estimates
         resulting from matters such as changes in ownership interests, payouts,
         joint venture  audits,  re-allocations  by purchasers or pipelines,  or
         other  corrections and adjustments  common in the oil and gas industry,
         many  of  which  require  retroactive   application.   These  types  of
         adjustments  cannot be currently  estimated and will be recorded in the
         period during which the adjustment occurs.


                                       9





         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Continued
                              SWIFT ENERGY COMPANY


         Income Taxes

              Under SFAS No. 109,  "Accounting for Income Taxes," deferred taxes
         are determined based on the estimated future tax effects of differences
         between  the   financial   statement   and  tax  basis  of  assets  and
         liabilities,  given  the  provisions  of  the  enacted  tax  laws.  The
         effective  tax rates for both the  first  nine  months of 2005 and 2004
         were lower than the  statutory  tax rates  primarily  due to reductions
         from the New Zealand statutory rate attributable to the currency effect
         on the New Zealand  deferred tax calculation and corrections to the New
         Zealand tax basis calculations. In the first nine months of 2005, these
         amounts were  partially  offset by higher  deferred state income taxes.
         The first nine months of 2004  included  favorable  corrections  to tax
         basis amounts  discovered while preparing the prior year's tax returns.
         The tax  laws  in the  jurisdictions  we  operate  in are  continuously
         changing and professional judgments regarding such laws can differ.

         Accounts Payable and Accrued Liabilities

              Included in  "Accounts  payable and accrued  liabilities,"  on the
         accompanying  balance  sheets,  at September  30, 2005 and December 31,
         2004 are  liabilities of  approximately  $6.0 million and $6.9 million,
         respectively,  representing the amount by which checks issued,  but not
         presented to the Company's banks for collection,  exceeded  balances in
         the applicable disbursement bank accounts.

         Accumulated Other Comprehensive Income (Loss), Net of Income Tax

              We follow the provisions of SFAS No. 130, "Reporting Comprehensive
         Income,"  which  establishes  standards  for  reporting   comprehensive
         income.  In  addition  to net  income,  comprehensive  income  or  loss
         includes all changes to equity during a period,  except those resulting
         from  investments and  distributions  to the owners of the Company.  At
         September 30, 2005, we recorded $0.1 million, net of taxes of less than
         $0.1 million,  of derivative losses in "Accumulated other comprehensive
         income (loss),  net of income tax" on the  accompanying  balance sheet.
         The components of  accumulated  other  comprehensive  income (loss) and
         related tax effects for the period  ending  September  30, 2005 were as
         follows (in thousands):


                                                                   Tax                        Net of Tax
                                                               Gross Value   Tax Effect         Value
                                                              ------------   ----------    ---------------

                                                                                  
        Other comprehensive income at 
             December 31, 2004                                $    710,828   $ (260,163)   $       450,665
        Change in fair value of cash flow hedges                  (129,865)      45,788            (84,077)
        Effect of cash flow hedges settled
             during the period                                    (802,423)     296,094           (506,329)
                                                              ------------   ----------    ---------------

        Other comprehensive loss at September 30, 2005        $   (221,460)  $   81,719    $      (139,741)
                                                              ============   ==========    ===============



              Total comprehensive income was $27.7 million and $14.2 million for
         the third quarters of 2005 and 2004, respectively.  Total comprehensive
         income was $80.5 million and $41.8 million for the first nine months of
         2005 and 2004, respectively.

         Stock Based Compensation

              We  account  for two  stock-based  compensation  plans  under  the
         recognition  and   measurement   principles  of  APB  Opinion  No.  25,
         "Accounting    for   Stock   Issued   to   Employees,"    and   related
         interpretations.  We issued  restricted stock to officers for the first
         time in the fourth quarter of 2004, and then to directors in the second
         quarter of 2005,  and to other  employees in the third quarter of 2005.
         For the nine month period ended September 30, 2005, we recorded expense
         for stock based compensation, which primarily includes restricted stock
         expense,  of $1.0 million in "General and  administrative,  net" on the
         accompanying statements of income. No stock-based employee compensation
         cost is  reflected  in net income for employee  stock  options,  as all
         options  granted  under  our plan had an  exercise  price  equal to the
         market value of the  underlying  common stock on the date of the grant;
         or in the case of the employee  stock  purchase  plan,  as the purchase
         price is 85% of the lower of the closing  price of our common  stock as
         quoted on the New York Stock  Exchange at the  beginning  or end of the
         plan year or a date  during  the year  chosen by the  participant.  Had
         compensation  expense for these plans been determined based on the fair
         value of the  options  consistent  with SFAS No. 123,  "Accounting  for
         Stock-Based  Compensation," our net income and earnings per share would
         have been adjusted to the following pro forma amounts:


                                       10





         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Continued
                              SWIFT ENERGY COMPANY



                                                                            Three Months Ended September 30,
                                                                           ---------------------------------
                                                                                2005               2004
                                                                           ---------------     -------------
                                                                                        
           Net Income:          As Reported                                    $27,506,899       $14,130,717
                                Stock-based employee compensation
                                expense determined under fair value
                                method for all  awards, net of tax                (995,399)      (1,059,331)
                                                                           ---------------     -------------
                                Pro Forma                                      $26,511,500       $13,071,386

           Basic EPS:           As Reported                                        $.96               $.51
                                Pro Forma                                          $.93               $.47

           Diluted EPS:         As Reported                                        $.92               $.50
                                Pro Forma                                          $.89               $.46


                                                                            Nine Months Ended September 30,
                                                                           ---------------------------------
                                                                                2005              2004
                                                                           ---------------     -------------
           Net Income:          As Reported                                    $81,077,709       $41,616,498
                                Stock-based employee compensation
                                expense determined under fair value
                                method for all  awards, net of tax              (2,968,488)       (3,170,157)
                                                                           ---------------     -------------
                                Pro Forma                                      $78,109,221       $38,446,341

           Basic EPS:           As Reported                                       $2.86              $1.50
                                Pro Forma                                         $2.75              $1.39

           Diluted EPS:         As Reported                                       $2.77              $1.47
                                Pro Forma                                         $2.67              $1.36


              Pro  forma   compensation   cost   reflected   above  may  not  be
         representative  of the cost to be expected in future periods.  The fair
         value of each option  grant is estimated on the date of grant using the
         Black-Scholes  option-pricing  model.  We  view  all  awards  of  stock
         compensation  as a single  award  with an  expected  life  equal to the
         average  expected life of component  awards and amortize the award on a
         straight-line basis over the life of the award.

         Price-Risk Management Activities

              The Company  follows SFAS No. 133,  which requires that changes in
         the derivative's fair value are recognized currently in earnings unless
         specific  hedge  accounting   criteria  are  met.  The  statement  also
         establishes  accounting  and reporting  standards  requiring that every
         derivative   instrument   (including  certain  derivative   instruments
         embedded in other contracts) is recorded in the balance sheet as either
         an asset or a liability  measured at its fair value.  Hedge  accounting
         for a qualifying  hedge allows the gains and losses on  derivatives  to
         offset related results on the hedged item in the income  statements and
         requires that a company formally  document,  designate,  and assess the
         effectiveness of transactions that receive hedge accounting. Changes in
         the fair value of  derivatives  that do not meet the criteria for hedge
         accounting,  and the ineffective  portion of the hedge,  are recognized
         currently in income.

              We  have  a  price-risk   management   policy  to  use  derivative
         instruments to protect against  declines in oil and gas prices,  mainly
         through the  purchase  of price  floors and  collars.  During the third
         quarters of 2005 and 2004, we recognized net losses of $0.4 million and
         $0.2  million,  respectively,  relating to our  derivative  activities.
         During the first nine months of 2005 and 2004, we recognized net losses
         of  $0.9  million  and  $1.3  million,  respectively,  relating  to our
         derivative  activities.   This  activity  is  recorded  in  "Price-risk


                                       11





         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Continued
                              SWIFT ENERGY COMPANY


         management and other, net" on the accompanying statements of income. At
         September 30, 2005, the Company had recorded $0.1 million, net of taxes
         of less than $0.1 million,  of derivative losses in "Accumulated  other
         comprehensive  income  (loss),  net of income tax" on the  accompanying
         balance sheet.  This amount represents the change in fair value for the
         effective  portion of our hedging  transactions  that qualified as cash
         flow hedges. The ineffectiveness reported in "Price-risk management and
         other,  net"  for the  first  nine  months  of 2005  and  2004  was not
         material.  We  expect  to  reclassify  all  amounts  currently  held in
         "Accumulated other comprehensive income (loss), net of income tax" into
         the  statement  of  income  within  the  next  three  months  when  the
         forecasted sale of hedged production occurs.

              At September  30, 2005, we had in place price floors in effect for
         October 2005 through the December 2005 contract  month for natural gas,
         that cover a portion of our domestic natural gas production for October
         2005 to December  2005.  The natural gas price  floors  cover  notional
         volumes of 800,000 MMBtu,  with a weighted average floor price of $5.91
         per MMBtu.  Our natural gas price floors in place at September 30, 2005
         are  expected  to  cover  approximately  20% to  30%  of our  estimated
         domestic natural gas production from October 2005 to December 2005.

              When we entered into these transactions discussed above, they were
         designated as a hedge of the variability in cash flows  associated with
         the  forecasted  sale of natural  gas  production.  Changes in the fair
         value  of a hedge  that  is  highly  effective  and is  designated  and
         documented  and qualifies as a cash flow hedge,  to the extent that the
         hedge is effective,  are recorded in "Accumulated  other  comprehensive
         income  (loss),  net of income tax." When the hedged  transactions  are
         recorded  upon the actual sale of oil and natural  gas,  these gains or
         losses are reclassified from "Accumulated  other  comprehensive  income
         (loss),  net of income tax" and recorded in "Price-risk  management and
         other, net" on the accompanying  statement of income. The fair value of
         our  derivatives  is computed  using the  Black-Scholes  option pricing
         model and is  periodically  verified  against quotes from brokers.  The
         fair value of these  instruments  at September 30, 2005,  was less than
         $0.1 million and is  recognized  on the  accompanying  balance sheet in
         "Other current assets."

         Supervision Fees

              Consistent with industry practice,  we charge a supervision fee to
         the wells we operate  including  our wells in which we own up to a 100%
         working  interest.  Supervision  fees are  recorded as a  reduction  to
         general  and  administrative,  net based on our  estimate  of the costs
         incurred to operate the wells.  The total  amount of  supervision  fees
         charged to the wells we operate was $5.8  million  and $4.0  million in
         the first nine months of 2005 and 2004, respectively.

         Asset Retirement Obligation

              In June 2001,  the  Financial  Accounting  Standards  Board (FASB)
         issued SFAS No. 143, "Accounting for Asset Retirement Obligations." The
         statement requires entities to record the fair value of a liability for
         legal  obligations   associated  with  the  retirement  obligations  of
         tangible long-lived assets in the period in which it is incurred.  When
         the liability is initially recorded, the carrying amount of the related
         long-lived  asset is increased.  The  liability is discounted  from the
         year the well is  expected  to  deplete.  Over time,  accretion  of the
         liability  is  recognized  each  period,  and the  capitalized  cost is
         depreciated on a  unit-of-production  basis over the useful life of the
         related  asset.  Upon  settlement  of the  liability,  an entity either
         settles the obligation for its recorded amount or incurs a gain or loss
         upon  settlement.  This standard  requires us to record a liability for
         the fair value of our  dismantlement and abandonment  costs,  excluding
         salvage values. Based on our experience and analysis of the oil and gas
         services industry,  we have not factored a market risk premium into our
         asset retirement  obligation.  SFAS No. 143 was adopted by us effective
         January 1, 2003.  The following  provides a  roll-forward  of our asset
         retirement obligation:


                                       12





         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Continued
                              SWIFT ENERGY COMPANY




                                                                                  2005              2004
                                                                           ----------------   ---------------
                                                                                        
         Asset Retirement Obligation recorded as of January 1              $     17,639,136   $    10,137,473
           Accretion expense for the nine months ended September 30                 565,531           498,870
           Liabilities incurred for new wells and facilities construction            63,772           315,404
           Reductions due to sold, or plugged and abandoned wells                  (360,104)         (234,769)
           Increase (decrease) due to currency exchange rate fluctuations           (27,755)           37,569
                                                                           ----------------   ---------------
         Asset Retirement Obligation as of September 30                    $     17,880,580   $    10,754,547
                                                                           ----------------   ---------------



              At September  30, 2005 and December 31, 2004,  approximately  $1.3
         million  and  $0.5  million,  respectively,  of  our  asset  retirement
         obligation is classified  as a current  liability in "Accounts  payable
         and accrued liabilities" on the accompanying balance sheets.

         New Accounting Pronouncements

              In September and November 2004, and March 2005, the EITF discussed
         a proposed  framework for addressing when a limited  partnership should
         be consolidated by its general  partner,  EITF Issue 04-5. The proposed
         framework presumes that a sole general partner in a limited partnership
         controls the limited partnership,  and therefore should consolidate the
         limited partnership.  The presumption of control can be overcome if the
         limited  partners have (a) the  substantive  ability to remove the sole
         general  partner or otherwise  dissolve the limited  partnership or (b)
         substantive   participating   rights.  The  EITF  reached  a  tentative
         conclusion  on the  circumstances  in which either  kick-out  rights or
         participating  rights  would be  considered  substantive  and  preclude
         consolidation  by the general partner.  The EITF tentatively  concluded
         that for kick-out rights to be considered  substantive,  the conditions
         specified in paragraph B20 of FIN 46R should be met. With regard to the
         definition of participating rights that would preclude consolidation by
         the general  partner,  the EITF  concluded that the definition of those
         rights  should be consistent  with those in EITF Issue 96-16.  The EITF
         also reached a tentative  conclusion on the transition for Issue 04-05.
         The FASB ratified the EITF consensus at the June 2005 EITF meeting.  We
         do  not  believe  this  EITF  will  have  a  material   impact  on  our
         consolidated  financial  statements  because  we  believe  our  limited
         partners have  substantive  kick-out  rights under paragraph B20 of FIN
         46R.

              In  December  2004,  the FASB issued  SFAS No.  123R,  Share-Based
         Payment.  SFAS No. 123R is a revision of SFAS No. 123,  Accounting  for
         Stock-Based Compensation, and supercedes APB Opinion No. 25, Accounting
         for Stock  Issued to  Employees,  and amends SFAS No. 95,  Statement of
         Cash Flows. SFAS No. 123R requires all employee  share-based  payments,
         including  grants of employee  stock  options,  to be recognized in the
         financial   statements  based  on  their  fair  values.  SFAS  No.  123
         discontinues the ability to account for these equity  instruments under
         the intrinsic value method as described in APB Opinion No. 25. SFAS No.
         123R requires the use of an option  pricing model for  estimating  fair
         value,  which is  amortized to expense  over the service  periods.  The
         requirements  of  SFAS  No.  123R  are  effective  for  fiscal  periods
         beginning after June 15, 2005.  SFAS No. 123R permits public  companies
         to adopt its requirements using one of two methods:

         o    A "modified prospective" method in which compensation cost is
              recognized beginning with the effective date based on the
              requirements of SFAS No. 123R for all share-based payments granted
              after the effective date and based on the requirements of SFAS No.
              123 for all awards granted to employees prior to the adoption date
              of SFAS No. 123R that remain unvested on the adoption date.

         o    A "modified retrospective" method which includes the requirements
              of the modified prospective method described above, but also
              permits entities to restate either all prior periods presented or
              prior interim periods of the year of adoption based on the amounts
              previously recognized under SFAS No. 123 for purposes of pro forma
              disclosures.

              In April 2005, the SEC issued a release  announcing  that it would
         provide for a phased-in  implementation process for SFAS No. 123R. As a
         result,  our  required  date to adopt SFAS No.  123R is now  January 1,
         2006. Also in April 2005, the SEC issued Staff Accounting Bulleting No.
         107, Share-Based Payment, which provides guidance on the implementation
         of SFAS No.  123R.  SAB No. 107 provides


                                       13





         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Continued
                              SWIFT ENERGY COMPANY


         guidance on valuing options,  estimating  volatility and expected terms
         of the option  awards,  and  discusses  the SEC's views on  share-based
         payment   transactions  with   non-employees,   the  capitalization  of
         compensation  cost and accounting for income tax effects of share-based
         payment arrangements upon adoption of SFAS No. 123R.

              We have  elected  to adopt  the  provisions  of SFAS  No.  123R on
         January 1, 2006 using the modified  prospective method. As permitted by
         Statement 123, the Company currently accounts for share-based  payments
         to employees  using APB Opinion No. 25's intrinsic value method and, as
         such,  generally  recognizes no  compensation  cost for employee  stock
         options.  Accordingly,  the adoption of Statement No. 123R's fair value
         method is  expected  to have a  significant  impact on our  results  of
         operations.  However,  it will have no impact on our overall  financial
         position. We currently use the Black-Scholes-Merton formula to estimate
         the value of stock options  granted to employees and expect to continue
         to use  this  acceptable  option  valuation  model  upon  the  required
         adoption of SFAS No. 123R. The  significance  of the impact of adoption
         will depend on levels of outstanding  unvested  share-based payments on
         the date of adoption and  share-based  payments  granted in the future.
         However, had we adopted Statement No. 123R in prior periods, the impact
         of that standard  would have  approximated  the impact of Statement No.
         123 as described in the disclosure of pro forma net income and earnings
         per share under "Stock Based Compensation" above.

              In May 2005, the FASB issued SFAS No. 154,  Accounting Changes and
         Error  Corrections:  a  replacement  of APB  Opinion  No.  20 and  FASB
         Statement No. 3. SFAS No. 154 requires  voluntary changes in accounting
         principles to be applied  retrospectively,  unless it is impracticable.
         SFAS No. 154's retrospective  application requirement replaces APB 20's
         requirement to recognize most voluntary changes in accounting principle
         by including  in net income of the period of the change the  cumulative
         effect of changing to the new accounting  principle.  If  retrospective
         application for all prior periods is impracticable,  the method used to
         report  the change and the  reason  the  retrospective  application  is
         impracticable are to be disclosed.

              Under  SFAS  No.  154,  retrospective   application  will  be  the
         transition   method  in  the  unusual  instance  that  a  newly  issued
         accounting pronouncement does not provide specific transition guidance.
         It is expected that many pronouncements will specify transition methods
         other than  retrospective.  SFAS No. 154 is  effective  for  accounting
         changes made in fiscal years beginning after December 15, 2005, and the
         adoption  of this  statement  is  expected  to have  no  impact  on our
         financial position or results of operations.

              In July 2005,  the FASB issued an exposure draft  "Accounting  for
         Uncertain Tax Positions,  a proposed  interpretation  of FASB Statement
         No.  109."  The  proposed  interpretation  would  apply to all open tax
         positions  under FASB No. 109. The  conclusions in this  interpretation
         include:   initial   recognition  of  tax  benefits,   recognition  and
         de-recognition  of  tax  positions,  measurement  of tax  benefits  and
         classifications of tax liabilities. The comment period on this exposure
         draft ended in  September  2005,  and we are  currently  assessing  the
         impact,  if any, that this  interpretation  would have on our financial
         position and results of operations.  The proposal  enactment date would
         require application effective December 31, 2005.

(3)  Earnings Per Share

              Basic  earnings per share ("Basic  EPS") have been computed  using
         the weighted  average  number of common shares  outstanding  during the
         respective periods.  Diluted earnings per share ("Diluted EPS") for all
         periods also assumes,  as of the  beginning of the period,  exercise of
         stock  options  and  restricted  stock  grants to  employees  using the
         treasury  stock  method.  Certain  of our  stock  options,  that  could
         potentially dilute Basic EPS in the future,  were anti-dilutive for the
         three-month  and nine-month  periods ended September 30, 2005 and 2004,
         and are discussed below.

              The  following  is  a   reconciliation   of  the   numerators  and
         denominators  used in the  calculation of Basic and Diluted EPS for the
         three-month and nine-month periods ended September 30, 2005 and 2004:


                                       14





         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Continued
                              SWIFT ENERGY COMPANY




                                                           Three Months Ended September 30,
                                      ------------------------------------------------------------------------------
                                                      2005                                   2004
                                      ---------------------------------------  -------------------------------------
                                          Net                     Per Share        Net                     Per Share
                                         Income       Shares        Amount        Income       Shares        Amount
                                      ------------  -----------  ------------  ------------  -----------  ----------
                                                                                        

      Basic EPS:
        Net Income and Share Amounts  $ 27,506,899   28,632,895  $       0.96  $ 14,130,717   27,948,095  $     0.51
        Dilutive Securities:
        Restricted Stock                       ---       71,815                         ---         ---
        Stock Options                          ---    1,081,254                         ---     555,861
                                      ------------  -----------                ------------  ----------
      Diluted EPS:
        Net Income and Assumed Share
          Conversions                 $ 27,506,899   29,785,964  $       0.92  $ 14,130,717  28,503,956   $     0.50
                                      ------------  -----------                ------------  ----------


                                                            Nine Months Ended September 30,
                                      ------------------------------------------------------------------------------
                                                      2005                                   2004
                                      --------------------------------------   -------------------------------------
                                           Net                    Per Share        Net                   Per Share
                                         Income       Shares        Amount       Income        Shares       Amount
                                      ------------  ----------- -------------  -----------   -----------  ----------
      Basic EPS:
        Net Income and Share Amounts  $ 81,077,709   28,390,120  $       2.86  $ 41,616,498   27,747,789  $     1.50
        Dilutive Securities:
        Restricted Stock                       ---       37,194                         ---          ---
        Stock Options                          ---      866,822                         ---      502,251
                                      ------------  -----------                -----------   -----------
      Diluted EPS:
        Net Income and Assumed Share
          Conversions                 $ 81,077,709   29,294,136  $       2.77  $ 41,616,498   28,250,040  $     1.47
                                      ------------  -----------                ------------  ----------


              Options to purchase approximately 2.4 million shares at an average
         exercise price of $20.24 were  outstanding at September 30, 2005, while
         options to purchase 2.8 million shares at an average  exercise price of
         $17.65 were  outstanding  at September 30, 2004.  Less than 0.1 million
         and 0.9  million  options to purchase  shares were not  included in the
         computation of Diluted EPS for the three-month  periods ended September
         30, 2005 and 2004, respectively,  and approximately 0.2 million and 0.9
         million options to purchase shares were not included in the computation
         of Diluted EPS for the nine-month  periods ended September 30, 2005 and
         2004, respectively, because these options were antidilutive in that the
         option price was greater than the average  closing market price for the
         common  shares  during  those  periods.   Restricted  stock  grants  to
         consultants of 15,000  shares,  which were issued in the second half of
         2004,  were not  included  in the  computation  of Diluted  EPS for the
         three-month  and  nine-month  periods  ended  September  30,  2005,  as
         performance  conditions surrounding the vesting of these shares had not
         occurred.

(4) Long-Term Debt

              Our long-term debt, including the current portion, as of September
         30, 2005 and December 31, 2004, was as follows (in thousands):



                                                               September 30,            December 31,
                                                                   2005                     2004
                                                           ------------------      -------------------
                                                                             
          Bank Borrowings                                  $              ---      $             7,500
          7-5/8% senior notes due 2011                                150,000                  150,000
          9-3/8% senior subordinated notes due 2012                   200,000                  200,000
                                                           ------------------      -------------------
                    Long-Term Debt                         $          350,000      $           357,500
                                                           ------------------      -------------------



                                       15





         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Continued
                              SWIFT ENERGY COMPANY


         Bank Borrowings

              At September 30, 2005, we had no outstanding  borrowings under our
         $400.0 million credit facility with a syndicate of ten banks that has a
         borrowing  base of $250.0  million  and  expires  in October  2008.  At
         December 31, 2004, we had $7.5 million in outstanding  borrowings under
         our credit  facility.  The interest  rate is either (a) the lead bank's
         prime rate (6.75% at September  30, 2005),  or (b) the adjusted  London
         Interbank  Offered Rate ("LIBOR") plus the applicable  margin depending
         on the level of outstanding debt. The applicable margin is based on the
         ratio of the outstanding balance to the last calculated borrowing base.
         In June 2004, we renewed this credit facility,  increasing the facility
         to $400 million  from $300  million and  extending  its  expiration  to
         October 1, 2008 from  October 1,  2005.  The other  terms of the credit
         facility,  such as the  borrowing  base amount and  commitment  amount,
         stayed largely the same. The covenants  related to this credit facility
         changed  somewhat  with the extension of the facility and are discussed
         below.  We incurred $0.4 million of debt issuance  costs related to the
         renewal of this facility in 2004,  which is included in "Debt  issuance
         costs" on the  accompanying  balance  sheets and will be  amortized  to
         interest expense over the life of the facility.

              The  terms  of our  credit  facility  also  include,  among  other
         restrictions,  a  limitation  on the  level of cash  dividends  (not to
         exceed  $5.0  million  in  any  fiscal  year),  a  remaining  aggregate
         limitation on purchases of our stock of $15.0 million,  requirements as
         to  maintenance  of  certain  minimum  financial  ratios   (principally
         pertaining  to  adjusted  working  capital  ratios  and  EBITDAX),  and
         limitations on incurring other debt or  repurchasing  our 7-5/8% senior
         notes  due 2011 or 9-3/8%  senior  subordinated  notes due 2012.  Since
         inception, no cash dividends have been declared on our common stock. We
         are currently in compliance with the provisions of this agreement.  The
         credit facility is secured by our domestic oil and gas  properties.  We
         have also pledged 65% of the stock in our two New Zealand  subsidiaries
         as  collateral  for  this  credit  facility.   The  borrowing  base  is
         re-determined at least every six months and was reconfirmed by our bank
         group at $250.0 million effective November 1, 2005. At our request, the
         commitment  amount  with our bank group was  reduced to $150.0  million
         effective May 9, 2003, and continues at this amount. Under the terms of
         the credit facility, we can increase this commitment amount back to the
         total amount of the borrowing  base at our  discretion,  subject to the
         terms of the credit agreement. The next scheduled borrowing base review
         is in May 2006.

              Interest expense on the credit facility, including commitment fees
         and amortization of debt issuance costs,  totaled $0.2 million and $0.3
         million  for the  three-months  ended  September  30,  2005  and  2004,
         respectively,  and $0.8  million and $1.2  million for the  nine-months
         ended  September  30,  2005  and  2004,  respectively.  The  amount  of
         commitment fees included in interest expense,  net was $0.1 million for
         both the  three-months  ended  September  30,  2005 and 2004,  and $0.4
         million for both the nine-months ended September 30, 2005 and 2004.

          Senior Notes Due 2011

              These notes  consist of $150.0  million of 7-5/8% senior notes due
         2011,  which  were  issued  on June 23,  2004 at 100% of the  principal
         amount and will mature on July 15, 2011. The notes are senior unsecured
         obligations  that rank  equally  with all of our  existing  and  future
         senior unsecured indebtedness,  are effectively subordinated to all our
         existing and future secured  indebtedness to the extent of the value of
         the collateral  securing such indebtedness,  including  borrowing under
         our bank credit  facility,  and rank senior to all of our  existing and
         future  subordinated  indebtedness.  Interest on these notes is payable
         semi-annually  on January 15 and July 15, and  commenced on January 15,
         2005.  On or after  July 15,  2008,  we may  redeem  some or all of the
         notes, with certain  restrictions,  at a redemption price, plus accrued
         and unpaid  interest,  of 103.813% of  principal,  declining to 100% in
         2010 and thereafter. In addition, prior to July 15, 2007, we may redeem
         up to 35% of the notes with the net proceeds of qualified  offerings of
         our equity at a redemption price of 107.625% of the principal amount of
         the notes, plus accrued and unpaid interest. We incurred  approximately
         $3.9 million of debt issuance  costs  related to these notes,  which is
         included in "Debt issuance  costs" on the  accompanying  balance sheets
         and will be  amortized  to interest  expense,  net over the life of the
         notes using the  effective  interest  method.  Upon certain  changes in
         control of Swift  Energy,  each  holder of notes will have the right to
         require  us to  repurchase  all or any part of the notes at a  purchase
         price in cash equal to 101% of the principal  amount,  plus accrued and
         unpaid  interest  to the date


                                       16





         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Continued
                              SWIFT ENERGY COMPANY


         of   purchase.   The  terms  of  these  notes   include,   among  other
         restrictions,  a limitation  on how much of our own common stock we may
         repurchase.  We are currently in compliance  with the provisions of the
         indenture governing these senior notes.

              Interest  expense on the 7-5/8%  senior notes due 2011,  including
         amortization  of debt issuance  costs totaled $3.0 million for both the
         three-months  ended  September 30, 2005 and 2004,  and $8.9 million and
         $3.2 million for the  nine-months  ended  September  30, 2005 and 2004,
         respectively.

         Senior Subordinated Notes Due 2012

              These   notes   consist  of  $200.0   million  of  9-3/8%   senior
         subordinated  notes due May 2012,  which were issued on April 16, 2002,
         and  will  mature  on May 1,  2012.  The  notes  are  unsecured  senior
         subordinated  obligations  and are  subordinated in right of payment to
         all our existing  and future  senior  debt,  including  our bank credit
         facility and 7-5/8%  senior  notes.  Interest on these notes is payable
         semiannually  on May 1 and  November  1, and  commenced  on November 1,
         2002. On or after May 1, 2007, we may redeem these notes,  with certain
         restrictions,  at a redemption price, plus accrued and unpaid interest,
         of 104.688% of principal, declining to 100% in 2010. In addition, prior
         to May 1, 2005, we could have redeemed up to 33.33% of these notes with
         the net  proceeds of  qualified  offerings of our equity at 109.375% of
         the principal amount of these notes,  plus accrued and unpaid interest.
         Upon certain  changes in control of Swift Energy,  each holder of these
         notes will have the right to require  us to  repurchase  the notes at a
         purchase  price in cash  equal to 101% of the  principal  amount,  plus
         accrued and unpaid interest to the date of purchase. The terms of these
         notes include,  among other  restrictions,  a limitation on how much of
         our own common stock we may repurchase.  We are currently in compliance
         with the  provisions  of the  indenture  governing  these  subordinated
         notes.

              Interest expense on the 9-3/8% senior subordinated notes due 2012,
         including  amortization of debt issuance costs totaled $4.8 million for
         both the  three-months  ended  September  30, 2005 and 2004,  and $14.4
         million for both the nine-months ended September 30, 2005 and 2004.

         Other

              The aggregate  maturities  on our long-term  debt are $150 million
         for 2011 and $200 million for 2012.

              We have  capitalized  interest on our unproved  properties  in the
         amount of $1.8  million  and $1.6  million for the  three-months  ended
         September  30, 2005 and 2004,  respectively,  and $5.3 million and $4.7
         million for the nine-months ended September 30, 2005.

(5) Foreign Activities

              As of  September  30,  2005,  our  gross  capitalized  oil and gas
         property costs in New Zealand  totaled  approximately  $278.2  million.
         Approximately   $238.8   million  has  been  included  in  the  "Proved
         properties" portion of our oil and gas properties,  while $39.4 million
         is included as "Unproved  properties."  Our functional  currency in New
         Zealand is the U.S.  Dollar.  Net assets of our New Zealand  operations
         total $240.0 million at September 30, 2005. In April 2005, Swift Energy
         New Zealand ("SENZ") was awarded  petroleum mining permit ("PMP") 38155
         and  petroleum  exploration  permit  ("PEP")  38495 by the New  Zealand
         Government.  PMP 38155 is for the  development  of our  Kauri  Sand and
         Manutahi Sand discoveries and covers 8,708 acres and allows us to fully
         develop our Kauri area for a primary  term of 30 years.  Following  the
         award of PEP 38495,  SENZ  initiated  a farm-in  agreement  with Mighty
         River Power ("MRP"),  whereby SENZ agreed to transfer a 50% interest in
         the permit to MRP in return for MRP funding various seismic  operations
         during 2005 and 2006.  PEP 38495 is located  offshore  in the  southern
         portion  of the  basin  to the  south  and  west of our PEP  38719  and
         encompasses approximately 600 square miles.

(6) Acquisitions and Dispositions

              In late  December  2004,  we acquired  interests  in two fields in
         South  Louisiana,  the Bay de Chene and Cote Blanche Island fields.  We
         paid  approximately  $27.7 million in cash for these  interests.  After
         taking into account  internal  acquisition  costs of $2.8 million,  our
         total  cost was  $30.5  million.  We  allocated  $27.8  million  of the
         acquisition price to "Proved properties," and $5.1 million to "Unproved
         properties." We also recorded $0.5 million to "Restricted  assets," and
         recorded a liability of $2.9 million to "Asset  retirement  obligation"
         on our accompanying  balance sheet.  This acquisition was accounted for


                                       17





         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Continued
                              SWIFT ENERGY COMPANY

         by the  purchase  method of  accounting.  We made this  acquisition  to
         increase  our  exploration  and  development   opportunities  in  South
         Louisiana.  The revenues and expenses from these  properties  have been
         included  in our  accompanying  statements  of income  from the date of
         acquisition  forward,  however,  given  the  acquisition  was  in  late
         December 2004, these amounts were immaterial for 2004.

              In the third quarter of 2005,  we agreed to purchase  interests in
         the South Bearhead Creek Field in Beauregard Parish,  Louisiana with an
         effective  date of August 1, 2005.  We expect this purchase to close in
         November  2005 with an expected  purchase  price of  approximately  $24
         million.


                                       18





         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Continued
                              SWIFT ENERGY COMPANY


 (7) Segment Information

              The Company has two  reportable  segments,  one  domestic  and one
         foreign,  which  are in the  business  of  crude  oil and  natural  gas
         exploration and production. The accounting policies of the segments are
         the same as those  described in the summary of  significant  accounting
         policies.  We evaluate our performance based on profit or loss from oil
         and gas operations before price-risk management and other, net, general
         and  administrative,  net, and interest  expense,  net. Our  reportable
         segments are managed  separately based on their  geographic  locations.
         Financial information by operating segment is presented below:




                                                              Three Months Ended September 30,
                                     -----------------------------------------------------------------------------------
                                                       2005                                       2004
                                     ----------------------------------------   ----------------------------------------
                                                       New                                         New
                                        Domestic     Zealand        Total           Domestic     Zealand        Total
                                     ------------  -----------  -------------   -------------  -----------  ------------
                                                                                          
Oil and gas sales                    $ 81,692,754  $19,314,770  $ 101,007,524   $  63,497,169  $11,155,937  $ 74,653,106

Costs and Expenses:
    Depreciation, depletion and        17,328,183    6,542,104     23,870,287      15,112,143    4,733,024    19,845,167
      amortization
    Accretion of asset retirement         157,442       34,087        191,529         124,781       43,354       168,135
      obligation
    Lease operating costs               8,903,988    3,317,165     12,221,153       7,293,487    2,555,462     9,848,949
    Severance and other taxes           8,438,368    1,232,197      9,670,565       6,310,555      767,439     7,077,994
                                     ------------  -----------  -------------     -----------  -----------  ------------

Income from oil and gas operations   $ 46,864,773  $ 8,189,217  $  55,053,990   $  34,656,203  $ 3,056,658  $ 37,712,861

    Price-risk management and                                        (154,019)                                   289,645
      other, net

    General and administrative, net                                 5,803,946                                  4,390,432
    Interest expense, net                                           6,194,370                                  7,317,002
    Debt retirement cost                                                  ---                                  6,822,476
                                                                -------------                               ------------

Income Before Income Taxes                                      $  42,901,655                               $ 19,472,596
                                                                =============                               ============


                                                                Nine Months Ended September 30,
                                     --------------------------------------------------------------------------------------
                                                       2005                                       2004
                                     ------------------------------------------   -----------------------------------------
                                                       New                                           New
                                        Domestic     Zealand         Total           Domestic      Zealand        Total
                                     ------------  ------------  --------------   -------------  ------------  ------------

Oil and gas sales                    $248,399,764  $ 53,051,493  $  301,451,257   $ 177,918,389  $ 34,513,276  $212,431,665

Costs and Expenses:
    Depreciation, depletion and
       amortization                    57,560,343    19,292,953      76,853,296      44,533,330    13,116,577    57,649,907
    Accretion of asset retirement
       obligation                         465,465       100,066         565,531         375,028       123,842       498,870
    Lease operating costs              25,651,928     9,183,230      34,835,158      22,147,817     7,762,925    29,910,742
    Severance and other taxes          26,197,345     3,385,055      29,582,400      17,792,020     2,459,802    20,251,822
                                     ------------  ------------  --------------   -------------  ------------  ------------

Income from oil and gas operations   $138,524,683  $ 21,090,189  $  159,614,872   $  93,070,194  $ 11,050,130  $104,120,324

    Price-risk management and
      other, net                                                       (677,143)                                 (1,089,449)

    General and administrative, net                                  15,674,141                                  12,595,665
    Interest expense, net                                            18,825,273                                  21,361,566
    Debt retirement cost                                                    ---                                   9,513,719
                                                                 --------------                                ------------

Income Before Income Taxes                                       $  124,438,315                                $ 59,559,925
                                                                 ==============                                ============

Total Assets                         $886,525,732  $239,968,842  $1,126,494,574   $ 719,512,808  $202,689,893  $922,202,701
                                     ============  ==-=========  ==============   =============  ============  ============



                                       19





                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                              SWIFT ENERGY COMPANY


              You  should  read  the  following   discussion   and  analysis  in
         conjunction   with  our   financial   information   and  our  condensed
         consolidated  financial  statements and notes thereto  included in this
         report  and our Form 10-K for the year ended  December  31,  2004.  The
         following  information  contains  forward-looking   statements.  For  a
         discussion of limitations inherent in forward-looking  statements,  see
         "Forward-Looking Statements" on page 33 of this report.

         Overview

              For the third quarter of 2005, our revenues were $100.9 million, a
         35% increase,  and our production was 13.5 Bcfe, a 3% decrease, in both
         cases as compared to third  quarter 2004  results.  These  revenues and
         production  levels  for the third  quarter  of 2005 were lower than our
         pre-hurricane  guidance as a result of production shut-ins necessitated
         by  Hurricanes  Katrina and then Rita.  We estimate  that the effect of
         these hurricanes deferred approximately 3.0 Bcfe of production from the
         third  quarter of 2005.  The weighted  average  price  increased 40% to
         $7.48 per Mcfe for the  third  quarter  of 2005 from  $5.36 in the same
         period of 2004. The strong  commodity  prices during third quarter 2005
         supported  the  increase in our revenues as compared to the same period
         in 2004 despite the impact of the hurricanes on our production.

              Hurricane Katrina shut-down procedures were implemented  beginning
         August 26, 2005 in our Lake Washington Field in Plaquemines Parish, Bay
         de Chene Field in Jefferson  and Lafourche  Parishes,  and Cote Blanche
         Island  Field in St.  Mary's  Parish.  Production  at our Cote  Blanche
         Island Field was resumed in late August to  pre-hurricane  levels while
         damage assessment and repair work on our facilities and  infrastructure
         was conducted in Lake Washington and Bay de Chene. Some of our drilling
         operations  had  resumed  in  Lake  Washington  in  mid-September  when
         shut-down  procedures  were again  implemented  during the  approach of
         Hurricane  Rita.  Our  preparations  for  Hurricane  Rita began in late
         September  in  our  Lake  Washington   Field,  the  Toledo  Bend  Area,
         consisting of the Brookeland  Field located in East Texas in Jasper and
         Newton Counties,  and the Masters Creek Field located across the Sabine
         River in western Louisiana parishes of Rapides and Vernon, and again in
         our Cote  Blanche  Island  Field.  In  early  October,  production  was
         restored  at  our  Lake  Washington  Field  to  approximately   80%  of
         pre-Katrina  levels and  production in our Masters Creek and Brookeland
         Field was restored to 100% of pre-Rita levels in mid-October. We expect
         production  in our Lake  Washington  field to return  to  pre-hurricane
         rates in the near future.  Pending  completion  of repairs,  production
         remains  shut-in at our Bay de Chene Field due to damage from Hurricane
         Katrina.  Our Cote Blanche Island Field,  which had not suffered damage
         from  Hurricane  Katrina  but did suffer  damage  from  Hurricane  Rita
         remains  shut-in.  Drilling,  completion  and  recompletion  operations
         resumed  with  two  drilling  rigs  and  one  completion  rig  in  Lake
         Washington,  and one  completion  rig  working in Bay de Chene in early
         October.  A third  drilling  rig,  which was damaged  during  Hurricane
         Katrina,  just returned to the Lake  Washington  area in early November
         2005.

              In addition to the impact on our  production,  the hurricanes also
         resulted in substantial operational disruption in our Louisiana coastal
         fields. The disruption includes deferred drilling, displaced employees,
         offices, and dock facilities, and for a period, hampered communication.
         A new shore base was opened in DuLac,  Louisiana to facilitate  repairs
         in the fields and office  space and  housing  was  established  for our
         affected  employees  near  Houma,  Louisiana.  The new shore  base is a
         considerable  distance  from the  previous  shore base in Port  Sulphur
         adding  considerable  travel  time  to  the  fields.  Additionally,  we
         provided  personnel and equipment as requested by local  authorities to
         help with levee repairs and the  restoration  of access and services to
         the lower Plaquemines Parish area.

              During the third quarter of 2005, we recorded  approximately  $7.5
         million of costs related to Hurricane  Katrina and $1.3 million related
         to Hurricane Rita, and expect additional  hurricane related costs to be
         incurred in the fourth quarter of 2005.  Approximately  $1.0 million of
         the total  costs  were  expensed  to lease  operating  expense,  net of
         estimated  insurance  reimbursement,  in the third quarter of 2005. The
         remainder of the costs related to capital projects. .

              For the first  nine  months  of 2005,  we had  revenues  of $300.8
         million and production of 44.9


                                       20





                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS-(Continued)
                              SWIFT ENERGY COMPANY


         Bcfe,  which  is a  42%  increase  in  revenues  and a 6%  increase  in
         production over first nine months of 2004 results. Our revenues for the
         first nine  months of 2005 were  supported  by record  high oil and gas
         prices  in  the  industry,  while  at the  same  time,  our  production
         increased  over 2004  levels.  Our efforts and capital  throughout  the
         first nine months of 2005 remained  primarily focused on infrastructure
         improvements,  increased production,  and the development of long-lived
         reserves through exploration and exploitation  activities  primarily in
         southern Louisiana,  South Texas and New Zealand. We expect to continue
         this focus throughout the last quarter of 2005.

              Our overall costs and expenses have increased, and we expect costs
         and expenses to continue to increase in the fourth quarter of 2005. The
         primary  increase  in these  costs  and  expenses  is due to  increased
         depreciation,  depletion  and  amortization  expense  as  a  result  of
         increased estimates for future development costs and additional capital
         expenditures  during  the  year.  The  other  primary  factor  for  our
         increased  costs and  expenses is due to increased  production  in Lake
         Washington along with higher severance taxes due to increased revenues.
         We've also seen an increase in our general and administrative  expenses
         due to an increased workforce and stock compensation expense associated
         with the issuance of  restricted  stock.  Although our lease  operating
         costs  were  less than  originally  anticipated  through  the first six
         months  of 2005,  due to  lower  than  expected  chemical,  repair  and
         maintenance costs as well as no significant  work-over activity,  lease
         operating  costs were  adversely  affected in the third quarter of 2005
         due to Hurricane Katrina.

              Our financial position remains strong and flexible, allowing us to
         take  advantage  of future  opportunities  in  organic  growth  through
         drilling and  strategic  growth  through  acquisitions.  Our  financial
         ratios  have  also  continued  to  improve.  Our  debt to  PV-10  ratio
         decreased to 10% at September  30, 2005 compared to 18% at December 31,
         2004,  due to higher  crude oil and  natural  gas  prices  and a slight
         decrease in our total debt.  Higher commodity prices have increased our
         PV-10 value. Our debt to capitalization  ratio was 38% at September 30,
         2005  compared  to 43% at  year-end  2004,  as  debt  levels  decreased
         slightly in 2005 and  retained  earnings  increased  as a result of the
         current period profit.

              There are a number of factors  that  support our belief that Swift
         Energy's  performance  for the last quarter of 2005 will be strong.  We
         believe that strong commodity prices will continue over the foreseeable
         future, based in part on forward-strip  pricing. We expect to return to
         pre-Hurricane  Katrina  production  levels during the fourth quarter of
         2005 in Lake Washington and along with the capacity increase of the new
         facilities in Lake  Washington  is on schedule to be completed  late in
         the fourth quarter of 2005,  which was delayed due to  hurricanes.  Our
         3-D seismic data study of southern Louisiana has yielded success in our
         exploration  and  development   activities.   Continued  work-over  and
         recompletion  activity is expected to take place in the last quarter of
         2005,  particularly  in the Bay de Chene and Cote Blanche Island fields
         in southern Louisiana, however, this work has been delayed somewhat due
         to our recovery from Hurricanes  Katrina and Rita. The Piakau discovery
         in New Zealand has early results that are encouraging, although further
         reservoir  delineation is required.  Our diversified drilling portfolio
         positions us for higher impact exploration drilling as well as expanded
         exploitation efforts in both the last quarter of 2005 and into 2006.

         Results of Operations - Three Months Ended September 30, 2005 and 2004

              Revenues.  Our revenues in the third quarter of 2005  increased by
         35% compared to revenues in the same period in 2004,  due  primarily to
         an increase in commodity  prices,  partially offset by lower production
         volumes.  Revenues from our oil and gas sales  comprised  substantially
         all of our net revenues for the third quarter of both 2005 and 2004. In
         the  third  quarter  of  2005,  oil  production  made  up 47% of  total
         production,  natural gas made up 44%,  and NGL  represented  9%. In the
         third quarter of 2004, oil production made up 46% of total  production,
         natural gas made up 43%, and NGL represented 11%.

              Our third quarter of 2005 weighted average prices increased 40% to
         $7.48 per Mcfe from $5.36 in the third quarter of 2004, with per barrel
         oil  prices  appreciating  42% to $59.66  from  $41.99  during the same
         period in 2004,  per Mcfe  natural gas prices  increasing  33% to $5.29
         from $3.97, and per barrel NGL prices rose 36% to $31.84 from $23.33.

              Our third quarter of 2005  production  was  adversely  affected by
         Hurricanes Katrina and Rita. Our Lake Washington field was shut-in from
         late August due to Hurricane  Katrina and began producing again briefly


                                       22




                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS-(Continued)
                              SWIFT ENERGY COMPANY


         in late September,  but was then shut-in as Hurricane Rita  approached.
         The field began  producing  again in early  October 2005,  however,  at
         approximately 80% of pre-Katrina levels.

              The following table sets forth our revenues from oil and gas sales
         and the  volumes  underlying  those  sales  from our core areas for the
         three  months  ended  September  30,  2005 and 2004,  illustrating  the
         changes between the two periods:



                                                          Three Months Ended September 30,
                                    ----------------------------------------------------------------------------
     Area                            Oil and Gas Sales (In Millions)       Net Oil and Gas Sales Volumes (Bcfe)
     ----                                                                                                      
                                    ----------------------------------     -------------------------------------
                                                2005              2004               2005                   2004
                                                ----              ----               ----                   ----
                                                                                                
     AWP Olmos                               $  16.5            $ 11.9                2.0                    2.1
     Brookeland                                  6.5               4.5                0.8                    0.8
     Lake Washington                            46.6              37.1                4.9                    5.5
     Masters Creek                               4.5               5.4                0.5                    0.9
     Other                                       7.6               4.6                0.9                    0.9
                                    ----------------   ---------------     --------------   --------------------
             Total Domestic                  $  81.7            $ 63.5                9.1                   10.2
                                    ----------------   ---------------     --------------   --------------------
     Rimu/Kauri                                 11.3               4.4                2.2                    1.0
     TAWN                                        8.0               6.8                2.2                    2.7
                                    ----------------   ---------------     --------------   --------------------
             Total New Zealand               $  19.3            $ 11.2                4.4                    3.7
                                    ----------------   ---------------     --------------   --------------------
     Total                                   $ 101.0            $ 74.7               13.5                   13.9
                                    =================  ===============     ===============  ====================



              The following table breaks down our sales volumes by commodity and
         provides  average  sales  prices for each  commodity  for the  quarters
         ending September 30, 2005 and 2004:



                                                         Sales Volume                    Average Sales Price
                                             ------------------------------------    ---------------------------
                                                 Oil      NGL     Gas   Combined       Oil      NGL        Gas
                                               (MBbl)   (MBbl)   (Bcf)     (Bcfe)     (Bbl)    (Bbl)      (Mcf)
                                             --------  -------  ------  ---------    ------  -------  ----------
                                                                                     
         2005
         Three Months Ended September 30:
              Domestic                            925      119     2.8        9.1    $59.44   $40.58      $7.68
              New Zealand                         134       85     3.1        4.4    $61.23   $19.50      $3.08
                                             --------  -------  ------  ---------
                    Total                       1,059      204     5.9       13.5    $59.66   $31.84      $5.29
                                             ========  =======  ======  =========
         2004
         Three Months Ended September 30:
              Domestic                          1,008      151     3.2       10.2    $41.60   $26.44      $5.47
              New Zealand                          68      100     2.8        3.7    $47.75   $18.63      $2.21
                                             --------  -------  ------  ---------
                    Total                       1,076      251     6.0       13.9    $41.99   $23.33      $3.97
                                             ========  =======  ======  =========



                                       22






                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS-(Continued)
                              SWIFT ENERGY COMPANY

              In the third quarter of 2005,  our $26.4 million  increase in oil,
         NGL, and natural gas sales over the same period in 2004 resulted from:

         o    Price variances that had a $28.4 million favorable impact on
              sales, of which $18.7 million was attributable to the 42% increase
              in average oil prices received, $7.9 million was attributable to
              the 33% increase in average gas prices received, and $1.8 million
              was attributable to the 36% increase in average NGL prices
              received; and

         o    Volume variances that had a $2.0 million unfavorable impact on
              sales, with $0.7 million of decreases coming from the 17,000 Bbl
              decrease in oil sales volumes, $0.2 million of decreases due to
              the less than 0.1 Bcfe decrease in gas sales volumes, and by a
              $1.1 million decrease attributable to the 47,000 Bbl decrease in
              NGL sales volumes.

              Costs and  Expenses.  Our  expenses  in the third  quarter of 2005
         increased $2.5 million,  or 4%, compared to expenses in the same period
         of 2004.  The  increase  was mainly due to a $4.0  million  increase in
         DD&A,  a $2.4 million  increase in lease  operating  costs,  and a $2.6
         million increase in severance and other taxes.  These cost increases in
         the third  quarter  of 2005 were  partially  offset by debt  retirement
         costs that were  incurred in the third  quarter of 2004,  which totaled
         $6.8 million.

              Our third quarter 2005 general and administrative  expenses,  net,
         increased $1.4 million,  or 32%, from the level of such expenses in the
         same 2004 period.  This  increase was  primarily  due to an increase in
         workforce,  resulting in increased  salaries  and  benefits,  and stock
         compensation  expense associated with the issuance of restricted stock.
         Our net general and administrative expenses per Mcfe produced increased
         to $0.43 per Mcfe in the third  quarter  of 2005 from $0.32 per Mcfe in
         the  same  2004  period.  The  increase  to $0.43  per Mcfe was  mainly
         attributable to deferred production from the hurricanes.  For the third
         quarters of 2005 and 2004, our capitalized  general and  administrative
         costs totaled $4.6 million and $3.4 million,  respectively. The portion
         of   supervision   fees   recorded  as  a  reduction   to  general  and
         administrative  expenses was $2.0 million for the third quarter of 2005
         and $1.6 million for the 2004 period.

              DD&A increased $4.0 million,  or 20%, in the third quarter of 2005
         from  the  level  of  those  expenses  in  the  same  period  of  2004.
         Domestically,  DD&A increased $2.2 million in the third quarter of 2005
         predominantly  due to increases in our  depletable oil and gas property
         base including future development costs, and to a lesser extent,  lower
         reserve  volumes than in the same 2004  period,  offset by a decline in
         domestic production.  In New Zealand, DD&A increased by $1.8 million in
         the third  quarter of 2005 due to increases in the  depletable  oil and
         gas property base,  increased  production in the 2005 period, and lower
         reserve volumes than in the same 2004 period. Our DD&A rate per Mcfe of
         production  was $1.77 and $1.43 in the third quarters of 2005 and 2004,
         respectively.

              We recorded  $0.2 million of  accretions  to our asset  retirement
         obligation in both the third quarters of 2005 and 2004.

              Our lease  operating  costs per Mcfe produced were $0.91 and $0.71
         in the  third  quarters  of 2005  and  2004,  respectively.  Our  lease
         operating costs in the third quarter of 2005 increased $2.4 million, or
         24%,  over  the  level  of  such  expenses  in the  same  2004  period.
         Approximately  $1.6  of  the  increase  was  related  to  our  domestic
         operations,  which  increased by a net of $1.0 million due to Hurricane
         Katrina  related  costs.  Our  lease  operating  costs  in New  Zealand
         increased in the third quarter of 2005 by $0.8 million due to increased
         production  in the 2005  period.  The  increase  to $0.91  per Mcfe was
         mainly attributable to deferred production from the hurricanes.

              In the third quarter of 2005,  severance and other taxes increased
         $2.6 million,  or 37%,  over levels in the third  quarter of 2004.  The
         increase was due primarily to higher  commodity  prices.  Severance and
         other taxes, as a percentage of oil and gas sales,  were  approximately
         9.6% and 9.5% in the third quarters of 2005 and 2004, respectively.

              Interest  expense on our 7-5/8%  senior  notes due 2011  issued in
         June 2004, including  amortization of debt issuance costs, totaled $3.0
         million in the third quarters of 2005 and 2004. Interest expense on our


                                       23





                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS-(Continued)
                              SWIFT ENERGY COMPANY


         9-3/8%  senior  subordinated  notes  due 2012  issued  in  April  2002,
         including amortization of debt issuance costs, totaled $4.8 million for
         the third  quarters of 2005 and 2004.  Interest  expense on our 10-1/4%
         senior  subordinated  notes  issued in August 1999 and retired in 2004,
         including  amortization of debt issuance costs, totaled $0.8 million in
         the  third  quarter  of  2004.  Interest  expense  on our  bank  credit
         facility,  including  commitment fees and amortization of debt issuance
         costs,  totaled  $0.2  million  in the third  quarter  of 2005 and $0.3
         million  in the same  period in 2004.  Our total  interest  cost in the
         third  quarter  of 2005 was $8.0  million,  of which $1.8  million  was
         capitalized.  Our total  interest cost in the third quarter of 2004 was
         $8.9 million,  of which $1.6 million was  capitalized.  We capitalize a
         portion of interest  related to unproved  properties.  The  decrease of
         interest   expense  in  the  third   quarter  of  2005  was   primarily
         attributable  to the  replacement  of our 10-1/4%  senior  subordinated
         notes with our 7-5/8% senior notes.

              In the third  quarter of 2004,  we incurred  $6.8  million of debt
         retirement  costs related to the repurchase of a portion of our 10-1/4%
         senior  subordinated  notes due 2009  pursuant to a tender  offer.  The
         costs were comprised of approximately  $4.8 million of premiums paid to
         repurchase  the notes,  $1.6  million  to  write-off  unamortized  debt
         issuance  costs,  and  $0.4  million  to  write-off   unamortized  debt
         discount.

              Our overall  effective  tax rate was 35.9% in the third quarter of
         2005 and 27.4% in the same 2004 period.  The effective  income tax rate
         for both  the  third  quarter  of 2005  and  2004  was  lower  than the
         statutory tax rates  primarily  due to reductions  from the New Zealand
         statutory rate  attributable  to the currency effect on the New Zealand
         deferred tax calculation.  Additionally, the third quarter of 2004 rate
         is lower due to a favorable return to provision adjustment and reversal
         of a tax contingency.

              Net Income. For the third quarter of 2005, our net income of $27.5
         million was 95% higher, and Basic EPS of $0.96 was 90% higher, than our
         third  quarter  of 2004 net  income of $14.1  million  and Basic EPS of
         $0.51.  Our Diluted  EPS in the third  quarter of 2005 of $0.92 was 86%
         higher than our third  quarter 2004 Diluted EPS of $0.50.  These higher
         amounts are due to our increased  oil and gas  revenues,  which in turn
         were higher due to continued strong commodity prices,  partially offset
         by lower hurricane-deferred production volumes during the third quarter
         of 2005.

         Results of Operations - Nine Months Ended September 30, 2005 and 2004

              Revenues.  Our revenues in the first nine months of 2005 increased
         by 42% compared to revenues in the same period in 2004,  due  primarily
         to an  increase  in  commodity  prices  and  production  from  our Lake
         Washington area and the Rimu/Kauri area.  Revenues from our oil and gas
         sales  comprised  substantially  all of net revenues for the first nine
         months  of 2005 and  2004.  In the  first  nine  months  of  2005,  oil
         production  made up 51% of total  production,  natural gas made up 41%,
         and  NGL  represented  8%.  In the  first  nine  months  of  2004,  oil
         production  made up 47% of total  production,  natural gas made up 41%,
         and NGL  represented  12%. The increase in the  percentage of our total
         production  from oil is  because  production  from Lake  Washington  is
         almost  entirely crude oil, and production from this area has increased
         significantly as a result of our continued development in the field.

              Our first nine months of 2005 weighted  average  prices  increased
         34% to $6.71 per Mcfe from $5.00 in the first nine months of 2004, with
         per barrel oil prices appreciating 38% to $51.99 from $37.72 during the
         first nine months of 2004,  per Mcfe natural gas prices  increasing 20%
         to $4.73 from $3.93,  and per barrel NGL prices rose 27% to $27.15 from
         $21.46.


                                       24





                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITION AND RESULTS OF OPERATIONS-Continued
                              SWIFT ENERGY COMPANY


              The following  table sets forth our revenue from oil and gas sales
         and the volumes  underlying those sales from each of our core areas for
         the nine months ended  September  30, 2005 and 2004,  illustrating  the
         changes between the two periods:



                                                          Nine Months Ended September 30,
                                    ---------------------------------------------------------------------------

     Area                             Oil and Gas Sales (In Millions)      Net Oil and Gas Sales Volumes (Bcfe)
     ----                                                                                                     
                                    -----------------------------------   -------------------------------------
                                               2005               2004              2005                   2004
                                               ----               ----              ----                   ----
                                                                                              
     AWP Olmos                             $   40.7           $   36.2               5.7                    6.9
     Brookeland                                14.6               13.8               2.2                    2.7
     Lake Washington                          160.1               98.8              19.5                   16.1
     Masters Creek                             13.6               16.0               2.0                    2.9
     Other                                     19.4               13.1               2.6                    2.2
                                    ---------------   ----------------    --------------   --------------------
             Total Domestic                $  248.4           $  177.9              32.0                   30.8
                                    ---------------   ----------------    --------------   --------------------
     Rimu/Kauri                                33.1               13.8               6.5                    3.2
     TAWN                                      20.0               20.7               6.4                    8.5
                                    ---------------   ----------------    --------------   --------------------
             Total New Zealand                $53.1              $34.5              12.9                   11.7
                                    ---------------   ----------------    --------------   --------------------
     Total                                 $  301.5           $  212.4              44.9                   42.5
                                    ===============   ================    ===============  ====================


              The following table breaks down our sales volumes by commodity and
         provides  average  sales prices for each  commodity for the nine months
         ending September 30, 2005 and 2004:



                                                         Sales Volume                   Average Sales Price
                                             ------------------------------------    ------------------------
                                                Oil      NGL     Gas     Combined     Oil      NGL       Gas
                                              (MBbl)   (MBbl)   (Bcf)     (Bcfe)     (Bbl)    (Bbl)     (Mcf)
                                             --------  -------  ------  ---------    ------   ------    -----
         2005
         ----
                                                                                   
         Nine Months Ended September 30:
              Domestic                          3,448      381     9.1       32.0    $51.65   $32.66    $6.38
              New Zealand                         358      255     9.2       12.9    $55.25   $18.90    $3.10
                                             --------  -------  ------  --------- 
                    Total                       3,806      636    18.3       44.9    $51.99   $27.15    $4.73
                                             ========  =======  ======  =========
         2004
         ----
         Nine Months Ended September 30:
              Domestic                          3,047      540     9.3       30.8    $37.58   $23.29    $5.48
              New Zealand                         296      257     8.3       11.7    $39.26   $17.62    $2.20
                                             --------  -------  ------  ---------
                    Total                       3,343      797    17.6       42.5    $37.72   $21.46    $3.93
                                             ========  =======  ======  ========= 



              In the first nine months of 2005,  our $89.0  million  increase in
         oil, NGL, and natural gas sales resulted from:

         o    Price variances that had a $72.4 million favorable impact on
              sales, of which $54.3 million was attributable to the 38% increase
              in average oil prices received, $14.5 million was attributable to
              the 20% increase in average gas prices received, and $3.6 million
              was attributable to the 27% increase in average NGL prices
              received; and

         o    Volume variances that had a $16.6 million favorable impact on
              sales, with $17.5 million of increases coming from the 463,000 Bbl


                                       25





                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITION AND RESULTS OF OPERATIONS-Continued
                              SWIFT ENERGY COMPANY


              increase in oil sales volumes, $2.6 million of increases due to
              the 0.7 Bcf increase in gas sales volumes, partially offset by a
              $3.5 million decrease attributable to the 162,000 Bbl decrease in
              NGL sales volumes.

              Costs and Expenses.  Our expenses in the first nine months of 2005
         increased  $24.6  million,  or 16%,  compared  to  expenses in the same
         period of 2004.  The  increase was due to a $19.2  million  increase in
         DD&A, a $9.3 million  increase in severance and other taxes, and a $4.9
         million  increase in lease operating  costs, all of which are primarily
         due to increased  production volumes and high oil and gas prices in the
         first  nine  months of 2005.  These  cost  increases  in the first nine
         months of 2005 were partially offset by debt retirement costs that were
         incurred in the first nine months of 2004, which totaled $9.5 million.

              Our first nine months of 2005 general and administrative expenses,
         net, increased $3.1 million, or 24%, from the level of such expenses in
         the same 2004 period. This increase was primarily due to an increase in
         workforce,   resulting  in  increased  salaries,   benefits  and  stock
         compensation  expense associated with the issuance of restricted stock.
         Our net general and administrative expenses per Mcfe produced increased
         to $0.35 per Mcfe in the first nine  months of 2005 from $0.30 per Mcfe
         in the same 2004  period.  For the first nine  months of 2005 and 2004,
         our capitalized general and administrative  costs totaled $13.4 million
         and  $9.6  million,  respectively.  The  portion  of  supervision  fees
         recorded as a reduction to general and administrative expenses was $5.8
         million for the first nine months of 2005 and $4.0 million for the 2004
         period.

              DD&A increased $19.2 million,  or 33%, in the first nine months of
         2005  from the  level of those  expenses  in the same  period  of 2004.
         Domestically,  DD&A increased $13.0 million in the first nine months of
         2005 due to  increases  in the  depletable  oil and gas  property  base
         including future  development  costs and higher  production in the 2005
         period.  In New  Zealand,  DD&A  increased by $6.2 million in the first
         nine  months of 2005 due to  increases  in the  depletable  oil and gas
         property base,  higher  production in the 2005 period and lower reserve
         volumes  than in the  same  2004  period.  Our  DD&A  rate  per Mcfe of
         production  was $1.71 and  $1.36 in the first  nine  months of 2005 and
         2004, respectively.

              We recorded  $0.6 million of  accretions  to our asset  retirement
         obligation  in the first  nine  months of 2005 and $0.5  million in the
         same period of 2004.

              Our lease  operating  costs per Mcfe  produced  were  $0.78 in the
         first  nine  months  of 2005 and  $0.70 in the 2004  period.  Our lease
         operating  costs  in the  first  nine  months  of 2005  increased  $4.9
         million,  or 16%,  over the  level of such  expenses  in the same  2004
         period.  Approximately  $3.5 million of the increase was related to our
         domestic operations, which increased primarily due to higher production
         from our Lake Washington area and a net of  approximately  $1.0 million
         in Hurricane  Katrina  related costs.  Our lease operating costs in New
         Zealand  increased  in the nine  months of 2005 by $1.4  million due to
         higher plant operating  expense and higher production in the Rimu/Kauri
         area partially offset by the decline in the TAWN area.

              In the first  nine  months  of 2005,  severance  and  other  taxes
         increased $9.3 million, or 46%, over levels in the first nine months of
         2004.  The increase was due  primarily to higher  commodity  prices and
         increased  Lake  Washington  and  Rimu/Kauri  production in the period.
         Severance  taxes on oil in Louisiana  are 12.5% of oil sales,  which is
         higher  than in the  other  states  where  we have  production.  As our
         percentage  of oil  production  in  Louisiana  increases,  the  overall
         percentage of severance  costs to sales also  increases.  Severance and
         other taxes, as a percentage of oil and gas sales,  were  approximately
         9.8% and 9.5% in the first nine months of 2005 and 2004, respectively.

              Interest  expense on our 7-5/8%  senior  notes due 2011  issued in
         June 2004, including  amortization of debt issuance costs, totaled $8.9
         million in the first nine  months of 2005 and $3.2  million in the same
         2004  period,  which was the period  these  notes  were  issued and the
         10-1/4% senior subordinated notes were retired. Interest expense on our
         9-3/8%  senior  subordinated  notes  due 2012  issued  in  April  2002,
         including amortization of debt issuance costs, totaled $14.4 million in
         both the first nine  months of 2005 and 2004.  Interest  expense on our


                                       26





                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITION AND RESULTS OF OPERATIONS-Continued
                              SWIFT ENERGY COMPANY


         10-1/4% senior  subordinated notes issued in August 1999 and retired in
         2004,  including  amortization  of debt  issuance  costs,  totaled $7.4
         million in the first nine months of 2004.  Interest expense on our bank
         credit  facility,  including  commitment fees and  amortization of debt
         issuance  costs,  totaled $0.8 million in the first nine months of 2005
         and $1.1 million in the same period in 2004. Our total interest cost in
         the first nine months of 2005 was $24.1 million,  of which $5.3 million
         was  capitalized.  Our total  interest cost in the first nine months of
         2004 was $26.1  million,  of which $4.7  million  was  capitalized.  We
         capitalize a portion of interest  related to unproved  properties.  The
         decrease  of  interest  expense  in the first  nine  months of 2005 was
         primarily  attributable  to  the  replacement  of  our  10-1/4%  senior
         subordinated notes with our 7-5/8% senior notes.

              In the first nine months of 2004, we incurred $9.5 million of debt
         retirement  costs related to the repurchase of a portion of our 10-1/4%
         senior  subordinated  notes pursuant to a tender offer.  The costs were
         comprised of approximately  $6.5 million of premiums paid to repurchase
         the notes,  $2.2 million to write-off  unamortized debt issuance costs,
         $0.6 million to write-off unamortized debt discount and $0.2 million of
         other costs.

              Our overall  effective tax rate was 34.8% in the first nine months
         of 2005 and 30.1% in the same 2004  period.  The  effective  income tax
         rate for both the first nine months of 2005 and 2004 was lower than the
         statutory tax rates  primarily  due to reductions  from the New Zealand
         statutory rate  attributable  to the currency effect on the New Zealand
         deferred tax  calculation  and corrections to the New Zealand tax basis
         calculations.  Additionally,  the 2004 rate is lower  due to  favorable
         corrections to tax basis amounts  discovered  while preparing the prior
         year's tax returns.

              Net Income.  For the first nine months of 2005,  our net income of
         $81.1  million was 95%  higher,  and Basic EPS of $2.86 was 90% higher,
         than our first  nine  months of 2004 net  income of $41.6  million  and
         Basic EPS of $1.50. Our Diluted EPS in the first nine months of 2005 of
         $2.77 was 88% higher than our first nine months of 2004  Diluted EPS of
         $1.47.  These  higher  amounts  are  due to our  increased  oil and gas
         revenues,  which in turn were higher due to continued  strong commodity
         prices and our  increased  production  during the first nine  months of
         2005.

         Contractual Commitments and Obligations

              We had no  material  changes in our  contractual  commitments  and
         obligations  from  December 31, 2004 amounts  referenced  in our Annual
         Report on Form 10-K for the period ending December 31, 2004.

         Commodity Price Trends and Uncertainties

              Oil and natural gas prices historically have been volatile and are
         expected to continue to be volatile in the future. The price of oil has
         increased over the last two years and is currently at record highs when
         compared to longer-term historical prices. Factors such as geopolitical
         activities,   worldwide   supply   disruptions,    worldwide   economic
         conditions,  weather conditions, actions taken by OPEC, and fluctuating
         currency  exchange  rates can cause wide  fluctuations  in the price of
         oil.  Domestic natural gas prices continue to remain high when compared
         to longer-term  historical prices.  North American weather  conditions,
         the industrial and consumer  demand for natural gas,  storage levels of
         natural  gas, and the  availability  and  accessibility  of natural gas
         deposits in North  America can cause  significant  fluctuations  in the
         price of natural gas. Such factors are beyond our control.

         Income Tax Regulations

              The tax laws in the  jurisdictions  we operate in are continuously
         changing and professional judgments regarding such tax laws can differ.
         We do not believe the recently  enacted  American  Jobs Creation Act of
         2004 will have a material impact on our financial position or cash flow
         from operations in the near-term.

         Liquidity and Capital Resources

              During the first nine months of 2005,  we relied upon our net cash
         provided by  operating  activities  of $220.5  million to fund  capital
         expenditures  of $158.1 million and to pay down our bank  borrowings by
         $7.5 million.  During the first nine months of 2004, we largely  relied
         upon our net cash provided by operating  activities  of $126.4  million
         and proceeds  from the offering of our 7-5/8%  senior notes due 2011 of


                                       27





                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITION AND RESULTS OF OPERATIONS-Continued
                              SWIFT ENERGY COMPANY


         $150.0  million  to  fund  capital   expenditures  of  $128.5  million,
         repurchase $125.0 million of our 10-1/4% senior  subordinated notes due
         2009,  and  repay  outstanding   indebtedness  under  our  bank  credit
         facility.

              Net Cash  Provided  by  Operating  Activities.  For the first nine
         months of 2005,  our net cash  provided  by  operating  activities  was
         $220.5  million,  representing  a 74%  increase  as  compared to $126.4
         million  generated  during  the same 2004  period.  The  $94.0  million
         increase  in the  first  nine  months of 2005 was  primarily  due to an
         increase of $89.0 million in oil and gas sales,  attributable to higher
         commodity  prices  and  production,  offset  in  part by  higher  lease
         operating costs due to higher production and severance taxes.

              Accounts  Receivable.   Included  in  the  "Accounts   receivable"
         balance,  which  totaled  $39.0  million at December 31,  2004,  on the
         accompanying   balance  sheets,  were  approximately  $2.3  million  of
         receivables  related to hydrocarbon volumes produced from 2001 and 2002
         that had been disputed since early 2003. As a result of the dispute, we
         did not record a receivable  with regard to any 2003  disputed  volumes
         and our  contract  governing  these  sales  expired  in 2003.  Based on
         settlement discussions, we settled our claim with this counter-party in
         July  2005  by  receiving  a cash  payment  for  less  than  our  gross
         receivable.  Accordingly,  in the second  quarter of 2005, we increased
         our  reserve for this claim by  approximately  $0.6  million,  which is
         recorded in "Price-risk  management and other, net" on the accompanying
         statements of income.

              We assess the collectibility of accounts receivable,  and based on
         our judgment,  we accrue a reserve when we believe a receivable may not
         be  collected.  At September  30, 2005 and December 31, 2004, we had an
         allowance  for  doubtful  accounts  of less than $0.1  million and $0.5
         million,  respectively.  The allowance  for doubtful  accounts has been
         deducted  from  the  total  "Accounts   receivable"   balances  on  the
         accompanying balance sheets.

              Bank Credit  Facility.  We had no borrowings under our bank credit
         facility  at  September  30,  2005,  and $7.5  million  in  outstanding
         borrowings at December 31, 2004. Our bank credit  facility at September
         30, 2005 consisted of a $400.0 million  revolving line of credit with a
         $250.0 million  borrowing base. The borrowing base is  re-determined at
         least every six months and was  reaffirmed  by our bank group at $250.0
         million,  effective  November 1, 2005.  We  maintained  the  commitment
         amount at $150.0 million, which amount was set at our request effective
         May 9, 2003. We can increase this commitment amount to the total amount
         of the borrowing  base at our  discretion,  subject to the terms of the
         credit agreement.  Our revolving credit facility includes,  among other
         restrictions  that  changed  somewhat as the  facility  was renewed and
         extended,  requirements to maintain  certain minimum  financial  ratios
         (principally   pertaining  to  adjusted   working  capital  ratios  and
         EBITDAX), and limitations on incurring other debt. We are in compliance
         with the provisions of this agreement.

              Our  access to funds from our credit  facility  is not  restricted
         under any "material adverse  condition" clause, a clause that is common
         for credit agreements to include. A "material adverse condition" clause
         can remove the  obligation  of the banks to fund the credit line if any
         condition or event would  reasonably  be expected to have an adverse or
         material effect on our operations,  financial  condition,  prospects or
         properties,   and  would   impair  our  ability  to  make  timely  debt
         repayments.  Our credit facility includes  covenants that require us to
         report events or  conditions  having a material  adverse  effect on our
         financial  condition.  The  obligation  of the banks to fund the credit
         facility  is not  conditioned  on the  absence  of a  material  adverse
         effect.

              Debt  Maturities.  Our credit  facility  extends  until October 1,
         2008.  Our $150.0  million of 7-5/8% senior notes mature July 15, 2011,
         and our $200.0 million of 9-3/8% senior  subordinated  notes mature May
         1, 2012.

              Working  Capital.  Our working capital  improved from a deficit of
         $14.2  million at December 31, 2004,  to a surplus of $27.5  million at
         September 30, 2005. The improvement primarily resulted from an increase
         in our  cash  balances  due to  increased  cash  flows  from  operating
         activities exceeding capital expenditures.


                                       28





                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITION AND RESULTS OF OPERATIONS-Continued
                              SWIFT ENERGY COMPANY


              Hurricanes Costs. Our cash flow from operations will be negatively
         affected  in the  fourth  quarter  of 2005  resulting  from  Hurricanes
         Katrina and Rita.  As our Lake  Washington  field was shut-in from late
         August  through most of September  and then shut-in again for Hurricane
         Rita until early  October  2005,  we will not collect oil and gas sales
         revenue at this location for these production dates.  Through September
         30, 2005, we have recorded  approximately $7.5 million of costs related
         to  Hurricanes  Katrina and $1.3 million of costs  related to Hurricane
         Rita.  Approximately $1.9 million of these total costs were recorded in
         lease  operating  costs in the third  quarter  of 2005.  The  remaining
         amounts were  recorded in the third quarter of 2005 relating to capital
         costs.  The  majority of these costs have been  accrued as of September
         30, 2005. As cash payments are made against  these  expenses,  our cash
         flow from operations will be reduced.  The hurricane damage assessments
         for Lake Washington and Bay de Chene have been completed,  however, the
         assessment for Cote Blanche Island is still ongoing.

              Capital Expenditures.  In the first nine months of 2005, we relied
         upon our net cash provided by operating activities of $220.5 million to
         fund total  capital  expenditures  of $158.1  million in the first nine
         months of 2005, which included:

              Domestic expenditures of $124.1 million as follows:

                  o     $102.8 million for drilling and developmental activity
                        costs, predominantly in our Lake Washington and AWP
                        areas;

                  o     $18.9 million of domestic prospect costs, principally
                        prospect leasehold, activity, and geological costs
                        of unproved prospects;

                  o     $2.3 million primarily for a field office building,
                        mobile homes for employee use, computer equipment,
                        software, furniture, and fixtures;

                  o     less than $0.1 million on gas processing plants in the
                        Brookeland and Masters Creek areas.

              New Zealand expenditures of $34.0 million as follows:

                  o     $27.9 million for drilling and developmental activity
                        costs;

                  o     $5.3 million on prospect costs and geological costs of
                        unproved properties;

                  o     $0.6 million on gas processing plants;

                  o     and $0.2 million for computer equipment, software,
                        furniture, and fixtures.

              We successfully  completed 35 of 49 wells in the first nine months
         of 2005, for a success rate of 71%. Domestically, we completed 29 of 35
         development wells for a success rate of 83% and completed three of five
         exploration wells during the first nine months of 2005. During the same
         period,  a total of 26 wells were drilled in the Lake Washington  area,
         of which 18 were completed; 13 wells were drilled in the AWP Olmos area
         and all were completed,  and one  non-operated  well was drilled in the
         Brookeland area and was completed. In New Zealand during the first nine
         months of 2005,  we  drilled  six  development  wells of which two were
         successful, and three exploratory wells of which one was successful.

              For  the  last  quarter  of  2005,   we  expect  to  make  capital
         expenditures   of   approximately   $75   to  $95   million   including
         acquisitions. Our current estimated total capital expenditures for 2005
         are estimated to be $240 to $260 million, including acquisition costs.

              During  the  last  quarter  of 2005,  we  anticipate  drilling  or
         participating  in the  drilling of up to an  additional 6 to 7 wells in
         the Lake  Washington  area, an additional 4 to 7 wells in the AWP Olmos
         area,  and several  additional  wells,  with varying  working  interest
         percentages,  mainly in South Texas.  Approximately 10 to 12 wells were
         deferred  until  2006 due to the  hurricanes  experienced  in the third
         quarter of 2005.  In addition,  we plan on drilling 2 to 4 wells in New
         Zealand.


                                       29





                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITION AND RESULTS OF OPERATIONS-Continued
                              SWIFT ENERGY COMPANY


              Our 2005 capital expenditures continue to be focused on developing
         and producing  long-lived  reserves in our Lake Washington,  AWP Olmos,
         and  Rimu/Kauri  area.  For 2005,  based upon our  progress to date and
         effects of the  hurricanes  experienced  in the third  quarter,  we now
         estimate our total  production  to increase 1% to 3%, or  approximately
         59.0 Bcfe to 60.0 Bcfe, and estimate that proved reserves will increase
         5% to 10%, over 2004 levels.

              Our 2006 capital  expenditure budget is estimated to be 25% higher
         than 2005 spending  levels,  or about $300.0 to $325.0 million,  mainly
         due to continued  oilfield service cost increases and expanded drilling
         at our  recently  acquired  properties,  as well as a  continuation  of
         activities in our other core areas.  Our preliminary  2006 estimate for
         production is an increase of 14% to 18% over 2005 levels.

         New Accounting Pronouncements

              In September and November 2004, and March 2005, the EITF discussed
         a proposed  framework for addressing when a limited  partnership should
         be consolidated by its general  partner,  EITF Issue 04-5. The proposed
         framework presumes that a sole general partner in a limited partnership
         controls the limited partnership,  and therefore should consolidate the
         limited partnership.  The presumption of control can be overcome if the
         limited  partners have (a) the  substantive  ability to remove the sole
         general  partner or otherwise  dissolve the limited  partnership or (b)
         substantive   participating   rights.  The  EITF  reached  a  tentative
         conclusion  on the  circumstances  in which either  kick-out  rights or
         participating  rights  would be  considered  substantive  and  preclude
         consolidation  by the general partner.  The EITF tentatively  concluded
         that for kick-out rights to be considered  substantive,  the conditions
         specified in paragraph B20 of FIN 46R should be met. With regard to the
         definition of participating rights that would preclude consolidation by
         the general  partner,  the EITF  concluded that the definition of those
         rights  should be consistent  with those in EITF Issue 96-16.  The EITF
         also reached a tentative  conclusion on the transition for Issue 04-05.
         The FASB ratified the EITF consensus at the June 2005 EITF meeting.  We
         do  not  believe  this  EITF  will  have  a  material   impact  on  our
         consolidated  financial  statements  because  we  believe  our  limited
         partners have  substantive  kick-out  rights under paragraph B20 of FIN
         46R.

              In  December  2004,  the FASB issued  SFAS No.  123R,  Share-Based
         Payment.  SFAS No. 123R is a revision of SFAS No. 123,  Accounting  for
         Stock-Based Compensation, and supercedes APB Opinion No. 25, Accounting
         for Stock  Issued to  Employees,  and amends SFAS No. 95,  Statement of
         Cash Flows. SFAS No. 123R requires all employee  share-based  payments,
         including  grants of employee  stock  options,  to be recognized in the
         financial   statements  based  on  their  fair  values.  SFAS  No.  123
         discontinues the ability to account for these equity  instruments under
         the intrinsic value method as described in APB Opinion No. 25. SFAS No.
         123R requires the use of an option  pricing model for  estimating  fair
         value,  which is  amortized to expense  over the service  periods.  The
         requirements  of  SFAS  No.  123R  are  effective  for  fiscal  periods
         beginning after June 15, 2005.  SFAS No. 123R permits public  companies
         to adopt its requirements using one of two methods:

         o    A "modified prospective" method in which compensation cost is
              recognized beginning with the effective date based on the
              requirements of SFAS No. 123R for all share-based payments granted
              after the effective date and based on the requirements of SFAS No.
              123 for all awards granted to employees prior to the adoption date
              of SFAS No. 123R that remain unvested on the adoption date.

         o    A "modified retrospective" method which includes the requirements
              of the modified prospective method described above, but also
              permits entities to restate either all prior periods presented or
              prior interim periods of the year of adoption based on the amounts
              previously recognized under SFAS No. 123 for purposes of pro forma
              disclosures.

              In April 2005, the SEC issued a release  announcing  that it would
         provide for a phased-in  implementation process for SFAS No. 123R. As a
         result,  our  required  date to adopt SFAS No.  123R is now  January 1,
         2006. Also in April 2005, the SEC issued Staff Accounting Bulleting No.
         107, Share-Based Payment, which provides guidance on the implementation
         of SFAS No.  123R.  SAB No. 107 provides  guidance on valuing  options,
         estimating  volatility  and expected  terms of the option  awards,  and


                                       30





                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITION AND RESULTS OF OPERATIONS-Continued
                              SWIFT ENERGY COMPANY


         discusses  the SEC's views on  share-based  payment  transactions  with
         non-employees,  the  capitalization of compensation cost and accounting
         for  income  tax  effects  of  share-based  payment  arrangements  upon
         adoption of SFAS No. 123R.

              We have  elected  to adopt  the  provisions  of SFAS  No.  123R on
         January 1, 2006 using the modified  prospective method. As permitted by
         Statement 123, the Company currently accounts for share-based  payments
         to employees  using APB Opinion No. 25's intrinsic value method and, as
         such,  generally  recognizes no  compensation  cost for employee  stock
         options.  Accordingly,  the adoption of Statement No. 123R's fair value
         method is  expected  to have a  significant  impact on our  results  of
         operations.  However,  it will have no impact on our overall  financial
         position. We currently use the Black-Scholes-Merton formula to estimate
         the value of stock options  granted to employees and expect to continue
         to use  this  acceptable  option  valuation  model  upon  the  required
         adoption of SFAS No. 123R. The  significance  of the impact of adoption
         will depend on levels of outstanding  unvested  share-based payments on
         the date of adoption and  share-based  payments  granted in the future.
         However, had we adopted Statement No. 123R in prior periods, the impact
         of that standard  would have  approximated  the impact of Statement No.
         123 as described in the disclosure of pro forma net income and earnings
         per share under "Stock Based Compensation" above.

              In May 2005, the FASB issued SFAS No. 154,  Accounting Changes and
         Error  Corrections:  a  replacement  of APB  Opinion  No.  20 and  FASB
         Statement No. 3. SFAS No. 154 requires  voluntary changes in accounting
         principles to be applied  retrospectively,  unless it is impracticable.
         SFAS No. 154's retrospective  application requirement replaces APB 20's
         requirement to recognize most voluntary changes in accounting principle
         by including  in net income of the period of the change the  cumulative
         effect of changing to the new accounting  principle.  If  retrospective
         application for all prior periods is impracticable,  the method used to
         report  the change and the  reason  the  retrospective  application  is
         impracticable are to be disclosed.

              Under  SFAS  No.  154,  retrospective   application  will  be  the
         transition   method  in  the  unusual  instance  that  a  newly  issued
         accounting pronouncement does not provide specific transition guidance.
         It is expected that many pronouncements will specify transition methods
         other than  retrospective.  SFAS No. 154 is  effective  for  accounting
         changes made in fiscal years beginning after December 15, 2005, and the
         adoption  of this  statement  is  expected  to have  no  impact  on our
         financial position or results of operations.

              In July 2005,  the FASB issued an exposure draft  "Accounting  for
         Uncertain Tax Positions,  a proposed  interpretation  of FASB Statement
         No.  109."  The  proposed  interpretation  would  apply to all open tax
         positions  under FASB No. 109. The  conclusions in this  interpretation
         include:   initial   recognition  of  tax  benefits,   recognition  and
         de-recognition  of  tax  positions,  measurement  of tax  benefits  and
         classifications of tax liabilities. The comment period on this exposure
         draft ended in  September  2005,  and we are  currently  assessing  the
         impact,  if any, that this  interpretation  would have on our financial
         position and results of operations.  The proposal  enactment date would
         require application effective December 31, 2005.

         New Developments


              South Bearhead Creek. Swift Energy signed an agreement to purchase
         interests in South Bearhead Creek Field in Beauregard Parish, Louisiana
         with an effective date of August 1, 2005. This  acquisition is expected
         to close in November 2005 with a purchase  price of  approximately  $24
         million, subject to post-closing adjustments.


              Our  estimates  project total proved  reserves of these  purchased
         properties to be approximately  3.6 million BOE.  Approximately  42% of
         the reserves are classified as proved developed and future  development
         costs are estimated to be $22.7 million for an all-in  acquisition cost
         of $13.11  per BOE (or  $2.19  per  thousand  cubic  feet  equivalent).
         Current  production is approximately 90% crude oil and is less than 160
         BOE per day net to the purchased working interests.  The purchase price
         will be funded  with  current  cash flow.  Pursuant to the terms of the


                                       31





                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITION AND RESULTS OF OPERATIONS-Continued
                              SWIFT ENERGY COMPANY


         agreement,  we will  acquire a 100%  working  interest in the  seller's
         operated  wells in the  field and a 25%  working  interest  in  certain
         non-operated wells.


              South Bearhead Creek Field ("SBC") is located near the Toledo Bend
         area  approximately  50 miles south of our  Masters  Creek Field and 30
         miles north of Lake Charles, Louisiana. Oil and gas are produced in SBC
         predominantly  from the upper and lower Wilcox sands, at depths ranging
         from approximately 10,600 to 13,700 feet. The field also has production
         in the Cockfield  sands at  approximately  8,000 to 8,500 feet. SBC was
         discovered  in 1958 by a major  oil  company.  It is a large  east-west
         trending anticlinal closure and has had cumulative production of over 4
         million BOE. The field consists of approximately 5,800 gross acres with
         an average net revenue interest of approximately 78%.


              We plan to  initiate  an  exploitation  program  in 2006 to  drill
         proved undeveloped and probable  locations,  fracture stimulate several
         wells,  enhance  facilities and improve per unit operating costs. It is
         expected that our 2006 budget will include $8 million to $12 million of
         capital expenditures in this field.


                                       32






                           Forward Looking Statements

              The  statements  contained in this report that are not  historical
         facts are forward-looking statements as that term is defined in Section
         21E of the  Securities  and  Exchange  Act of 1934,  as  amended.  Such
         forward-looking   statements   may  pertain  to,  among  other  things,
         financial results, capital expenditures, drilling activity, development
         activities, cost savings,  production efforts and volumes,  hydrocarbon
         reserves,   hydrocarbon  prices,  liquidity,   regulatory  matters  and
         competition.  Such forward-looking statements generally are accompanied
         by words  such as "plan,"  "future,"  "estimate,"  "expect,"  "budget,"
         "predict,"  "anticipate,"  "projected,"  "should,"  "believe"  or other
         words that convey the  uncertainty  of future events or outcomes.  Such
         forward-looking  information is based upon management's  current plans,
         expectations,   estimates   and   assumptions,   upon  current   market
         conditions,  and upon engineering and geologic information available at
         this  time,  and is  subject  to  change  and to a number  of risks and
         uncertainties, and therefore, actual results may differ materially.

              Among the  factors  that  could  cause  actual  results  to differ
         materially  are the  uncertainty of finding,  replacing,  developing or
         acquiring  reserves;  the  uncertainty of drilling  results and reserve
         estimates;  damage to  operations,  decreased  production or diminished
         market outlets due to hurricanes or tropical storms through November or
         the  adequacy  of our  insurance  coverage  of those  costs;  operating
         hazards;  availability of equipment,  services or supplies;  changes in
         geologic or engineering information; geopolitical events; volatility in
         oil and gas prices; fluctuations of demand for our oil and natural gas;
         changes in market  conditions;  increased  competition;  and government
         regulations; as well as the risks and uncertainties set forth from time
         to time in our other  public  reports,  filings and public  statements.
         Also, because of the volatility in oil and gas prices,  availability of
         insurance at reasonable prices, expected increases in development costs
         and other factors,  interim results are not  necessarily  indicative of
         those for a full year.


                                       33





         ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

         Commodity Risk

              Our major market risk exposure is the volatile  commodity  pricing
         applicable to our oil and natural gas  production.  Realized  commodity
         prices  received  for  such  production  are  primarily  driven  by the
         prevailing  worldwide price for crude oil and spot prices applicable to
         natural  gas. The effects of such  pricing  volatility  are expected to
         continue.

              Our  price-risk  management  policy  permits  the  utilization  of
         derivative instruments (such as futures, forward contracts,  swaps, and
         option  contracts  such as floors and  collars) to mitigate  price risk
         associated with fluctuations in oil and natural gas prices.  Below is a
         description of the derivative instruments we have utilized to hedge our
         exposure to price risk.

         oPrice Floors - At September 30, 2005, we had in place price floors in
            effect through the December 2005 contract month for natural gas,
            which cover 20% to 30% of our estimated domestic natural gas
            production for October 2005 to December 2005. The natural gas price
            floors cover notional volumes of 800,000 MMBtu, and expire at
            various dates from October 2005 to December 2005, with a weighted
            average floor price of $5.91 per MMBtu.

         oNew Zealand Gas Contracts - Almost all of our current gas production
            in New Zealand is sold under long-term, fixed-price contracts
            denominated in New Zealand dollars. These contracts protect against
            price volatility, and our revenue from these contracts will vary
            only due to production fluctuations and foreign currency exchange
            rates.

         Customer Credit Risk

              We are  exposed  to  the  risk  of  financial  non-performance  by
         customers.  Our  ability  to  collect  on  sales  to our  customers  is
         dependent on the  liquidity of our customer  base.  To manage  customer
         credit  risk,  we  monitor  credit  ratings  of  customers  and seek to
         minimize exposure to any one customer where other customers are readily
         available.  Due to availability of other purchasers,  we do not believe
         that the loss of any single oil or gas  customer  would have a material
         adverse effect on our financial position or results of operations.

         Foreign Currency Risk

              We are exposed to the risk of fluctuations in foreign  currencies,
         most notably the New Zealand dollar.  Fluctuations in rates between the
         New Zealand  dollar and U.S.  dollar may impact our  financial  results
         from  our  New  Zealand   subsidiaries   since  we  have   receivables,
         liabilities,  natural  gas and NGL  sales  contracts,  and New  Zealand
         income tax calculations, all denominated in New Zealand dollars.

         Interest Rate Risk

              Our 7-5/8%  senior notes due 2011 and 9-3/8%  senior  subordinated
         notes due 2012  have  fixed  interest  rates,  consequently  we are not
         exposed to cash flow risk from market  interest  rate  changes on these
         notes. However,  there is a risk that market rates will decline and the
         required  interest  payments on these notes may exceed  those  payments
         based on the current  market  rate.  At September  30, 2005,  we had no
         borrowings  under our credit  facility,  which is  subject to  floating
         rates and  therefore  susceptible  to interest rate  fluctuations.  The
         result of a 10% fluctuation in the bank's base rate would constitute 70
         basis points and would not have a material  adverse  effect on our 2005
         cash flows based on this same level or a modest level of borrowing.


                                       34





         ITEM 4. CONTROLS AND PROCEDURES

         Disclosure Controls and Procedures

              We maintain  disclosure controls and procedures designed to ensure
         that  information  required to be  disclosed  in our filings  under the
         Securities Exchange Act of 1934 is recorded, processed,  summarized and
         reported  within  the time  periods  specified  in the  Securities  and
         Exchange  Commission rules and forms.  Our chief executive  officer and
         chief  financial  officer have  evaluated our  disclosure  controls and
         procedures as of the end of the period  covered by this report and have
         concluded that such disclosure controls and procedures are effective in
         ensuring  that  material  information  required to be disclosed in this
         report is accumulated  and  communicated  to them and our management to
         allow timely decisions regarding required disclosure.

         Internal Control Over Financial Reporting

              There  was  no  change  in our  internal  control  over  financial
         reporting  during  the  third  quarter  of  2005  that  has  materially
         affected,  or is reasonably likely to materially  affect,  our internal
         control over financial reporting.


                                       35





                              SWIFT ENERGY COMPANY


                          PART II. - OTHER INFORMATION

Item 1.       Legal Proceedings

No material legal proceedings are pending other than ordinary, routine
litigation incidental to the Company's business.

Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds - None

Item 3.       Defaults Upon Senior Securities - None

Item 4.       Submission of Matters to a Vote of Security Holders -
Our annual meeting of shareholders was held on May 10, 2005. At the record date,
28,222,966 shares of common stock were outstanding and entitled to one vote per
share upon all matters submitted at the meeting. At the annual meeting, three
nominees were elected to serve as Directors of Swift for three year terms to
expire at the 2008 annual meeting of shareholders:

             NOMINEES FOR DIRECTORS                  FOR             WITHHELD

   Deanna L. Cannon                               23,693,494        2,562,363
   Douglas J. Lanier                              23,691,491        2,564,366
   Bruce H. Vincent                               20,663,780        5,592,077

The terms of directors  Raymond E. Galvin,  Clyde W. Smith,  Jr., Terry E. Swift
expire at the 2006 annual meeting and the terms of directors A. Earl Swift, Greg
Matiuk and Henry C. Montgomery expire at the 2007 annual meeting.

The following two proposals were also approved at the annual meeting.

                                                         FOR         ABSTAIN
Approval of Swift Energy Company's 2005 Stock         15,065,918      29,266
Compensation Plan 

Approval of Ratification of Ernst & Young LLP         26,418,784       5,999
as Swift Energy Company'sIndependent Auditors
for the fiscal year ending December 31, 2005

Item 5.       Other Information

A Certificate of Designation  for our preferred stock created in connection with
our Rights Plan was filed with the Texas Secretary of State on November 7, 2005.
The newly filed  Certificate of  Designation is identical to the  Certificate of
Designation   previously   filed  in  1997.  When  the  Company's   Articles  of
Incorporation  were amended and restated in June of 2001, the  previously  filed
Certificate of Designation was inadvertently eliminated.  The new Certificate of
Designation is attached as an exhibit to this report.

The Company amended and restated its bylaws to change the provisions relating to
offices to match current practice and provide for future  flexibility  regarding
such offices to  eliminate  the specific  number of directors  required,  and to
increase  the range of the  number of  directors  required  to not more than ten
directors.  Additionally,  the  statutory  requirement  of a vote of  66-2/3% of
shareholders  to amend the  Company's  Articles of  Incorporation  was expressly
included in the Bylaws.  The Third  Amended and Restated  Bylaws of Swift Energy
Company adopted November 4, 2005 are also attached as an exhibit to this report.


                                       36





Item 6.         Exhibits

                 3.1*     Certificate of Designation of Series A Junior
                             Participating Preferred Stock of Swift Energy
                             Company.

                 3.2*     Third Amended and Restated Bylaws of Swift Energy
                             Company adopted November 4, 2005.

                 10.1*    First Amendment to First Amended and Restated Credit
                             Agreement effective as of November 1, 2005 by and
                             among Swift Energy Company, JP Morgan Chase Bank,
                             N.A. as Administrative Agent, J.P. Morgan
                             Securities, Inc. as Sole Lead Arranger and Sole
                             Book Runner, Wells Fargo Bank, National
                             Association, as Sydication Agent, BNP Paribas, as
                             Syndication Agent, Caylon, as Documentation Agent,
                             and Societe Generale, as Documentation Agent.

                 31.1*    Certification of Chief Executive Officer pursuant
                             to Section 302 of the Sarbanes-Oxley Act of 2002.

                 31.2*    Certification of Chief Financial Officer pursuant to
                             Section 302 of the Sarbanes-Oxley Act of 2002.

                 32*      Certification of Chief Executive Officer and Chief
                             Financial Officer pursuant to Section 906 of the
                             Sarbanes-Oxley Act of 2002.

                 *        Filed herewith


                                       37





                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                             SWIFT ENERGY COMPANY
                                             (Registrant)

Date:         November 9, 2005               By:   (original signed by)
           ------------------------          -----------------------------------
                                             Alton D. Heckaman, Jr.
                                             Executive Vice President and
                                             Chief Financial Officer




Date:         November 9, 2005               By:   (original signed by)
           ------------------------          -----------------------------------
                                             David W. Wesson
                                             Controller and Principal
                                             Accounting Officer


                                       38





                                                                    Exhibit 31.1


                                  CERTIFICATION

I, Terry E. Swift, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended
September 30, 2005, of Swift Energy Company;

2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the
registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such
internal control over financial reporting, to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent fiscal
quarter (the registrant's fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.


Date:  November 9, 2005                              /s/ Terry E. Swift
                                             -----------------------------------
                                                      Terry E. Swift
                                                  Chief Executive Officer


                                       39





                                                                    Exhibit 31.2


                                  CERTIFICATION

I, Alton D. Heckaman, Jr., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended
September 30, 2005, of Swift Energy Company;

2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the
registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such
internal control over financial reporting, to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent fiscal
quarter (the registrant's fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.


Date:  November 9, 2005                         /s/ Alton D. Heckaman, Jr.
                                             -----------------------------------
                                                   Alton D. Heckaman, Jr.
                                                Executive Vice President and
                                                   Chief Financial Officer


                                       40





                                                                     Exhibit 32


      Certification of Chief Executive Officer and Chief Financial Officer


            Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the accompanying Quarterly Report on Form 10-Q for the period
ended  September 30, 2005 (the  "Report") of Swift Energy  Company  ("Swift") as
filed with the  Securities  and  Exchange  Commission  on November 9, 2005,  the
undersigned,  in his capacity as an officer of Swift,  hereby certifies pursuant
to  18  U.S.C.  Section  1350,  as  adopted  pursuant  to  Section  906  of  the
Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the  requirements of Section 13(a) or 15(d) of
the  Securities  Exchange  Act of  1934,  as  amended;  and 

2. The  information  contained in the Report  fairly  presents,  in all material
respects, the financial condition and results of operations of Swift.


Dated:  November 9, 2005
                                                 /s/ Alton D. Heckaman, Jr.
                                             -----------------------------------
                                                   Alton D. Heckaman, Jr.
                                                  Executive Vice President
                                                 and Chief Financial Officer




Dated:  November 9, 2005
                                                     /s/ Terry E. Swift
                                             -----------------------------------
                                                       Terry E. Swift
                                                    Chief Executive Officer


                                       41





                                                                     Exhibit 3.1


                           CERTIFICATE OF DESIGNATION
                                       of
                  SERIES A JUNIOR PARTICIPATING PREFERRED STOCK
                                       of
                              SWIFT ENERGY COMPANY
                       Pursuant to Article 2.13(D) of the
                         Texas Business Corporation Act

 SWIFT ENERGY COMPANY, a corporation organized and existing under the Texas
Business Corporation Act (the "Corporation"), in accordance with the applicable
provisions thereof, DOES HEREBY CERTIFY:

 That pursuant to the authority vested in the Board of Directors in accordance
with the provisions of the Articles of Incorporation of the said Corporation,
the said Board of Directors on November 4, 2005 duly adopted the following
resolution creating a series of shares of Preferred Stock designated as "Series
A Junior Participating Preferred Stock":

         RESOLVED, that pursuant to the authority vested in the Board of
         Directors of this Corporation in accordance with the provisions of the
         Articles of Incorporation, a series of Preferred Stock, par value $.01
         per share, of the Corporation be and hereby is created, and that the
         designation and number of shares thereof and the voting and other
         powers, preferences and relative, participating, optional or other
         rights of the shares of such series and the qualifications, limitations
         and restrictions thereof are as follows:

                  Series A Junior Participating Preferred Stock

 1.Designation and Amount. There shall be a series of Preferred Stock that shall
be designated as "Series A Junior Participating Preferred Stock," and the number
of shares constituting such series shall be 1,000,000. Such number of shares may
be increased or decreased by resolution of the Board of Directors; provided,
however, that no decrease shall reduce the number of shares of Series A Junior
Participating Preferred Stock to less than the number of shares then issued and
outstanding plus the number of shares issuable upon exercise of outstanding
rights, options or warrants or upon conversion of outstanding securities issued
by the Corporation.


                                       42





 2.Dividends and Distribution.

 (A)Subject to the prior and superior right of the holders of any shares of any
class or series of stock of the Corporation ranking prior and superior to the
shares of Series A Junior Participating Preferred Stock with respect to
dividends, the holders of shares of Series A Junior Participating Preferred
Stock, shall be entitled to receive, when, as and if declared by the Board of
Directors out of funds legally available for the purpose, quarterly dividends
payable in cash on the 15th day of January, April, July and October, in each
year (each such date being referred to herein as a "Quarterly Dividend Payment
Date"), commencing on the first Quarterly Dividend Payment Date after the first
issuance, of a share or fraction of a share of Series A Junior Participating
Preferred Stock, in an amount per share (rounded to the nearest cent) equal to
the Adjustment Number (as defined below) times the aggregate per share amount of
all cash dividends, and the Adjustment Number times the aggregate per share
amount (payable in kind) of all non-cash dividends or other distributions other
than a dividend payable in shares of Common Stock or a subdivision of the
outstanding shares of Common Stock (by reclassification or otherwise), declared
on the Common Stock, par value $.01 per share, of the Corporation (the "Common
Stock") since the immediately preceding Quarterly Dividend Payment Date, or,
with respect to the first Quarterly Dividend Payment Date, since the first
issuance of any share or fraction of a share of Series A Junior Participating
Preferred Stock. The "Adjustment Number" shall initially be 1000. In the event
the Corporation shall at any time after August 12, 1997 (the "Rights Declaration
Date") (i) declare and pay any dividend on Common Stock payable in shares of
Common Stock, (ii) subdivide the outstanding Common Stock or (iii) combine the
outstanding Common Stock into a smaller number of shares, then in each such case
the Adjustment Number in effect immediately prior to such event shall be
adjusted by multiplying such Adjustment Number by a fraction, the numerator of
which is the number of shares of Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of Common Stock that
were outstanding immediately prior to such event.

 (B)The Corporation shall declare a dividend or distribution on the Series A
Junior Participating Preferred Stock as provided in paragraph (A) above
immediately after it declares a dividend or distribution on the Common Stock
(other than a dividend payable in shares of Common Stock).

 (C)The Board of Directors may fix a record date for the determination of
holders of shares of Series A Junior Participating Preferred Stock entitled to
receive payment of a dividend or distribution declared thereon, which record
date shall be no more than 60 days prior to the date fixed for the payment
thereof.

 3.Voting Rights. The holders of shares of Series A Junior Participating
Preferred Stock shall have the following voting rights:

 (A)Each share of Series A Junior Participating Preferred Stock shall entitle
the holder thereof to a number of votes equal to the Adjustment Number on all
matters submitted to a vote of the stockholders of the Corporation.


                                       43





 (B)Except as required by law and by Section 10 hereof, holders of Series A
Junior Participating Preferred Stock shall have no special voting rights and
their consent shall not be required (except to the extent they are entitled to
vote with holders of Common Stock as set forth herein) for taking any corporate
action.

4.       Certain Restrictions.

 (A)Whenever quarterly dividends or other dividends or distributions payable on
the Series A Junior Participating Preferred Stock as provided in Section 2 are
in arrears, thereafter and until all accrued and unpaid dividends and
distributions, whether or not declared, on shares of Series A Junior
Participating Preferred Stock outstanding shall have been paid in full, the
Corporation shall not:

 (i)declare or pay dividends on, make any other distributions on, or redeem or
Purchase or otherwise acquire for consideration any shares of stock ranking
junior (either as to dividends or upon liquidation, dissolution or winding up)
to the Series A Junior Participating Preferred Stock;

 (ii)declare or pay dividends on or make any other distributions on any shares
of stock ranking on a parity (either as to dividends or upon liquidation,
dissolution or winding up) with the Series A Junior Participating Preferred
Stock, except dividends paid ratably on the Series A Junior Participating
Preferred Stock and all such parity stock on which dividends are payable or in
arrears in proportion to the total amounts to which the holders of all such
shares are then entitled; or

 (iii)purchase or otherwise acquire for consideration any shares of Series A
Junior Participating Preferred Stock, or any shares of stock ranking on a parity
with the Series A Junior Participating Preferred Stock, except in accordance
with a purchase offer made in writing or by publication (as determined by the
Board of Directors) to all holders of Series A Junior Participating Preferred
Stock, or to such holders and holders of any such shares ranking on a parity
therewith, upon such terms as the Board of Directors, after consideration of the
respective annual dividend rates and other relative rights and preferences of
the respective series and classes, shall determine in good faith will result in
fair and equitable treatment among the respective series or classes.

 (B)The Corporation shall not permit any subsidiary of the Corporation to
purchase or otherwise acquire for consideration any shares of stock of the
Corporation unless the Corporation could, under paragraph (A) of this Section 4,
purchase or otherwise acquire such shares at such time and in such manner.

 5.Reacquired Shares. Any shares of Series A Junior Participating Preferred
Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired promptly after the acquisition thereof. All such
shares shall upon their retirement become authorized but unissued shares of
Preferred Stock and may be reissued as part of a new series of Preferred Stock
to be created by resolution or resolutions or the Board of Directors, subject to
any conditions and restrictions on issuance set forth herein.


                                       44





 6.Liquidation, Dissolution or Winding Up. (A) Upon any liquidation, dissolution
or winding up of the Corporation, voluntary or otherwise, no distribution shall
be made to the holders of shares of stock ranking junior (either as to dividends
or upon liquidation, dissolution or winding up) to the Series A Junior
Participating Preferred Stock unless, prior thereto, the holders of shares of
Series A Junior Participating Preferred Stock shall have received an amount per
share (the "Series A Liquidation Preference") equal to the greater of (i) $1.00
plus an amount equal to accrued and unpaid dividends and distributions thereon
whether or not declared, to the date of such payment, or (ii) the Adjustment
Number times the per share amount of all cash and other property to be
distributed in respect of the Common Stock upon such liquidation, dissolution or
winding up of the Corporation.

 (B)In the event, however, that there are not sufficient assets available to
permit payment in full of the Series A Liquidation Preference and the
liquidation preferences of all other classes and series of stock of the
Corporation, if any, that rank on a parity with the Series A Junior
Participating Preferred Stock in respect thereof, then the assets available for
such distribution shall be distributed ratably to the holders of the Series A
Junior Participating Preferred Stock and the holders of such parity shares in
proportion to their respective liquidation preferences.

 (C)Neither the merger or consolidation of the Corporation into or with another
corporation nor the merger or consolidation of any other corporation into or
with the Corporation shall be deemed to be a liquidation, dissolution or winding
up of the Corporation within the meaning or this Section 6.

 7.Consolidation, Merger, Etc. In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the outstanding
shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case each share of
Series A Junior Participating Preferred Stock shall at the same time be
similarly exchanged or changed in an amount per share equal to the Adjustment
Number times the aggregate amount of stock, securities, cash and/or any other
property (payable in kind), as the case may be, into which or for which each
share of Common Stock is changed or exchanged.

 8.No Redemption. Shares of Series A Junior Participating Preferred Stock shall
not be subject to redemption by the Company.

 9.Ranking. The Series A Junior Participating Preferred Stock shall rank junior
to all other series of the Preferred Stock as to the payment of dividends, and
as to the distribution of assets upon liquidation, dissolution or winding up,
unless the terms of any such series shall provide otherwise, and shall rank
senior to the Common Stock as to such matters.

 10.Amendment. At any time that any shares of Series A Junior Participating
Preferred Stock are outstanding, the Articles of Incorporation of the
Corporation, as amended or restated from time to time, shall not be amended in
any manner which would materially alter or change the powers, preferences or
special rights of the Series A Junior Participating Preferred Stock so as to
affect them adversely without the affirmative vote of the holders of two-thirds
of the outstanding shares of Series A Junior Participating Preferred Stock,
voting separately as a class.


                                       45





 11.Fractional Shares. Series A Junior Participating Preferred Stock may be
issued in fractions of a share that shall entitle the holder, in proportion to
such holder's factional shares, to exercise voting rights, receive dividends,
participate in distributions and to have the benefit of all other rights of
holders of Series A Junior Participating Preferred Stock.

 IN WITNESS WHEREOF, the undersigned has executed this Certificate this 7th day
of November, 2005.

                                          SWIFT ENERGY COMPANY



                                          By:
                                             -----------------------------------
                                                   Bruce H. Vincent
                                                   President


                                       46





                                                                     Exhibit 3.2



                      THIRD AMENDED AND RESTATED BYLAWS OF
                              SWIFT ENERGY COMPANY


                                       47





                                TABLE OF CONTENTS

                                                                           Page
ARTICLE I SHAREHOLDERS                                                        1
         1.           ANNUAL MEETING                                          1
         2.           SPECIAL MEETING                                         1
         3.           MANNER AND PLACE OF MEETING                             1
         4.           NOTICE                                                  1
         5.           BUSINESS TO BE CONDUCTED AT ANNUAL OR SPECIAL MEETING   2
         6.           QUORUM                                                  2
         7.           VOTE REQUIRED TO TAKE ACTION                            3
         8.           PROXIES                                                 3
         9.           VOTING OF SHARES                                        3
         10.          OFFICERS                                                3
         11.          LIST OF SHAREHOLDERS                                    4
ARTICLE II BOARD OF DIRECTORS                                                 4
         1.           MANAGEMENT                                              4
         2.           NUMBER                                                  4
         3.           ELECTION AND TERM                                       4
         4.           DIRECTOR NOMINATION PROCEDURES                          4
         5.           REMOVAL                                                 5
         6.           MEETING OF DIRECTORS                                    6
         7.           FIRST MEETING                                           6
         8.           ELECTION OF OFFICERS                                    6
         9.           REGULAR MEETINGS                                        6
         10.          SPECIAL MEETINGS                                        6
         11.          NOTICE                                                  6
         12.          QUORUM                                                  6
         13.          ORDER OF BUSINESS                                       7
         14.          ACTION BY WRITTEN CONSENT                               7
         15.          COMPENSATION                                            7
         16.          PRESUMPTION OF ASSENT                                   7
         17.          COMMITTEES                                              7
ARTICLE III OFFICERS                                                          8
         1.           NUMBER, TITLES AND TERM OF OFFICE                       8
         2.           REMOVAL                                                 8
         3.           VACANCIES                                               8
         4.           SALARIES                                                8
         5.           POWERS AND DUTIES OF THE CHAIRMAN OF THE BOARD          8
         6.           POWERS AND DUTIES OF VICE-CHAIRMAN OF THE BOARD         8
         7.           POWERS AND DUTIES OF THE CHIEF EXECUTIVE OFFICER        9
         8.           POWERS AND DUTIES OF THE PRESIDENT                      9
         9.           VICE PRESIDENTS                                         9
         10.          TREASURER                                               9


                                       48





                                                                           Page
         11.          ASSISTANT TREASURER                                     9
         12.          SECRETARIES                                            10
         13.          ASSISTANT SECRETARIES                                  10
ARTICLE IV INDEMNIFICATION AND INSURANCE                                     10
         1.           INDEMNIFICATION OF DIRECTORS                           10
         2.           INDEMNIFICATION OF OFFICERS                            13
         3.           INDEMNIFICATION OF OTHER PERSONS                       13
         4.           PROCEDURE FOR INDEMNIFICATION                          13
         5.           SURVIVAL; PRESERVATION OF OTHER RIGHTS                 14
         6.           INSURANCE                                              14
         7.           SEVERABILITY                                           15
ARTICLE V CAPITAL STOCK                                                      15
         1.           CERTIFICATE OF SHARES                                  15
         2.           TRANSFER OF SHARES                                     16
         3.           CLOSING OF TRANSFER BOOKS                              16
         4.           REGISTERED SHAREHOLDERS                                16
         5.           LOST CERTIFICATE                                       17
         6.           REGULATIONS                                            17
ARTICLE VI ACCOUNTS                                                          17
         1.           DIVIDENDS                                              17
         2.           RESERVES                                               17
         3.           DIRECTORS' ANNUAL STATEMENT                            17
         4.           CHECKS                                                 17
         5.           FISCAL YEAR                                            18
ARTICLE VII AMENDMENTS                                                       18

ARTICLE VIII MISCELLANEOUS PROVISIONS                                        18
         1.           OFFICES                                                18
         2.           SEAL                                                   18
         3.           NOTICE AND WAIVER OF NOTICE                            18
         4.           RESIGNATIONS                                           18
         5.           SECURITIES OF OTHER CORPORATIONS                       19


                                       ii

                                       49




                      THIRD AMENDED AND RESTATED BYLAWS OF
                              SWIFT ENERGY COMPANY


                                   ARTICLE I
                                  SHAREHOLDERS

1.  ANNUAL  MEETING.  The annual  meeting  of  shareholders  for the  purpose of
electing directors shall be held on such date and time as may be fixed from time
to time by the board of directors  and stated in the notice of the meeting.  Any
business may be transacted at an annual meeting, except as otherwise provided by
law or by these Bylaws.


2. SPECIAL MEETING.  A special meeting of shareholders may be called at any time
by the  president  or  secretary  at the request in writing of the holders of at
least ten percent (10%) of the  outstanding  stock  entitled to be voted at such
meeting,  or a special  meeting of  shareholders  may be called at any time by a
majority  of  the  members  of  the  board  of  directors  who  are  "Continuing
Directors," being those directors then in office who have been or will have been
directors for the two year period (or such shorter period as the corporation has
been in existence)  ending on the date notice of the meeting or written  consent
to take such action is first provided to  shareholders,  or those  directors who
have been  nominated  for  election or elected to succeed  such  directors  by a
majority of such  directors,  by the chairman of the board, by the vice chairman
of the board or by the  president.  Only such business  shall be transacted at a
special meeting as may be stated or indicated in the notice of such meeting.


3. MANNER AND PLACE OF MEETING.The annual meeting of shareholders may be held in
any manner  permitted  by law or these Bylaws at any place within or without the
State  of Texas  designated  by the  board of  directors.  Special  meetings  of
shareholders  may be held in any manner  permitted by law or these Bylaws at any
place  within or without the State of Texas  designated  by the  chairman of the
board or the President, if he shall call the meeting, or the board of directors,
if they shall call the  meeting.  Any meeting may be held at any place within or
without the State of Texas designated in a waiver of notice of such meeting held
at the principal  office of the  corporation  unless another place is designated
for meetings in the manner provided herein. Subject to the provisions herein for
notice of meetings,  meetings of shareholders may be held by means of conference
telephone or similar communications equipment by means of which all participants
can hear each other.


4. NOTICE.  Written or printed  notice  stating the place,  day and hour of each
meeting  of  shareholders  and,  in case of a special  meeting,  the  purpose or
purposes for which the meeting is called,  shall be delivered  not less than ten
(10) nor more  than  sixty  (60) days  before  the date of the  meeting,  either
personally or by mail, to each  shareholder  of record  entitled to vote at such
meeting.  Whenever  any notice is  required  to be given to any  shareholder,  a
waiver  thereof in writing  signed by such  person(s)  entitled  to such  notice


                                       50





(whether  signed  before or after the time  required for such  notice)  shall be
equivalent to the giving of such notice.


5.  BUSINESS  TO BE  CONDUCTED  AT ANNUAL OR  SPECIAL  MEETING1)  . At an annual
meeting of the shareholders, only such business shall be conducted as shall have
been  properly  brought  before the meeting.  To be properly  brought  before an
annual or special  meeting  business  must be specified in the notice of meeting
(or any  supplement  thereto)  given  by or at the  direction  of the  board  of
directors,  (b)  otherwise  properly  brought  before  the  meeting by or at the
direction of the board of directors,  or (c) otherwise  properly  brought before
the meeting by a  shareholder.  For  business to be properly  brought  before an
annual or special  meeting by a  shareholder,  the  shareholder  must have given
timely  notice  thereof in writing to the  secretary of the  corporation.  To be
timely, a shareholder's  notice regarding  business to be conducted at an annual
meeting must be delivered to or mailed and received at the  principal  executive
offices of the corporation, not less than 60 days nor more than 90 days prior to
the meeting; provided, however, that in the event that less than 70 days' notice
or  prior  public  disclosure  of the  date of the  meeting  is given or made to
shareholders,  notice by the  shareholder  to be timely must be so received  not
later than the close of business on the 10th day following the day on which such
notice of the date of the annual  meeting was mailed or such  public  disclosure
was  made.  To be  timely,  a  shareholder's  notice  regarding  business  to be
conducted  at a special  meeting  must be delivered to or mailed and received at
the principal  executive  offices of the  corporation no later than the date the
notice  required  under  Section  4  of  this  Article  I  is  provided  to  the
shareholders;  provided  that,  in no event  shall the  special  meeting be held
sooner than forty (40) days after the notice is received by the  corporation.  A
shareholder's  notice to the  secretary  shall set forth as to each  matter  the
shareholder  proposes to bring before the meeting (a) a brief description of the
business desired to be brought before the meeting and the reasons for conducting
such  business at the meeting,  (b) the name and address,  as they appear on the
corporation's books, of the shareholder  proposing such business,  (c) the class
and  number of shares of the  corporation  which are  beneficially  owned by the
shareholder,  and (d) any material interest of the shareholder in such business.
Notwithstanding  anything in the Bylaws to the  contrary,  no business  shall be
conducted at any meeting  except in accordance  with the procedures set forth in
this  Section  5. The  chairman  of the  meeting  shall,  if the facts  warrant,
determine  and declare to the meeting that  business  was not  properly  brought
before the meeting and in accordance  with the provisions of this Section 5, and
if he should so  determine,  he shall so  declare  to the  meeting  and any such
business not properly brought before the meeting shall not be transacted.


6. QUORUM. Except as otherwise required by law, the Articles of Incorporation or
these  Bylaws,  the  holders of at least a majority  of the  outstanding  shares
entitled to vote  thereat and present in person or by proxy shall  constitute  a
quorum. The shareholders present at any meeting,  though less than a quorum, may
adjourn the meeting.  No notice of adjournment,  other than the  announcement at
the meeting, need be given.


                                       51





7. VOTE REQUIRED TO TAKE ACTION. Except as otherwise provided in these Bylaws or
the Articles of Incorporation, the affirmative vote of the holders of a majority
of the shares  entitled  to vote on, and that voted for or against or  expressly
abstained with respect to, that matter at a meeting of  shareholders  at which a
quorum is present shall decide any question brought before such meeting,  unless
the  question  is one upon  which  express  provisions  of  (e)applicable  Texas
statutes, (f)the rules of any exchange or quotation system upon which securities
of the corporation are traded,  or (g)the  Articles of  Incorporation  require a
different  vote, in which case such express  provision  shall govern and control
the decision of such question.  The affirmative  vote of the holders of at least
sixty-six  and  two-thirds  percent (66 2/3%) of the  outstanding  shares of the
capital stock of the corporation entitled to vote shall be required to amend the
Articles of Incorporation. In addition to the foregoing voting requirements, the
affirmative  vote of the holders of at least  sixty-six  and two thirds  percent
(66-2/3%)  of the  outstanding  shares of the capital  stock of the  corporation
entitled  to vote  shall be  required  (1) to sell,  assign or dispose of all or
substantially  all of the  corporation's  assets  (consisting of more than fifty
percent  (50%) of either the total  assets or the total  proved  reserves of the
corporation)  in  one  or a  series  of  related  transactions,  (2)  to  merge,
consolidate  or engage in a share  exchange  with another  corporation  or other
entity, or (3) to enter into any transaction (including the issuance or transfer
of  securities  of the  corporation),  with  any  holder  of 20% or  more of the
outstanding capital stock of the corporation if such transaction is not approved
by a majority of the directors and any such  transaction with a holder of 20% or
more of the outstanding  capital stock of the corporation  must otherwise comply
with  Section  13.03 of the  Texas  Business  Corporation  Act (the  "TBCA")  or
successor statute.


8. PROXIES.  At all meetings of  shareholders,  a shareholder may vote either in
person  or by  proxy  executed  in  writing  by the  shareholder  or by his duly
authorized  attorney-in-fact.  Such proxies shall be filed with the  corporation
before or at the time of the meeting.  No proxy shall be valid after eleven (11)
months from the date of its execution  unless  otherwise  provided in the proxy.
Each  proxy  shall  be  revocable  unless  expressly   provided  therein  to  be
irrevocable or unless otherwise made irrevocable by law.


9. VOTING OF SHARES.  Each outstanding  share of a class entitled to vote upon a
matter submitted to a vote at a meeting of shareholders shall be entitled to one
vote on such matter  except to the extent that the voting  rights are limited or
denied by the Articles of Incorporation.  No shareholder shall have the right to
cumulate his votes in the election of directors.


10. OFFICERS. The chairman of the board shall preside at and the secretary shall
keep the  records of each  meeting of  shareholders,  but in the  absence of the
chairman,  the president shall perform the chairman's duties, and in the absence
of the secretary and all assistant secretaries, his duties shall be performed by
some person appointed by the presiding officer.


                                       52





11. LIST OF  SHAREHOLDERS.  A complete list of shareholders  entitled to vote at
each shareholders' meeting,  arranged in alphabetical order, with the address of
and number of shares  held by each,  shall be  prepared  by the officer or agent
having charge of the stock transfer books and filed at the registered  office of
the  corporation  and shall be subject to inspection by any  shareholder  during
usual  business  hours for a period of ten (10) days prior to such  meeting  and
shall be  produced  at such  meeting  and at all times  during  such  meeting be
subject to inspection by any shareholder.


                                   ARTICLE II
                               BOARD OF DIRECTORS

1. MANAGEMENT.  The business and affairs of the corporation  shall be managed by
the  board  of  directors.  The  board  may  exercise  all  such  powers  of the
corporation and do all such lawful acts and things as are not by statute, by the
Articles of  Incorporation  or these Bylaws directed or required to be exercised
or done by the shareholders.


2. NUMBER. The number of directors which shall constitute the board of directors
shall be not less than  three (3) nor more than ten (10)  directors.  Within the
limits  specified  above,  the  number  of  directors  shall  be  determined  by
resolution  of the  board of  directors  or by the  shareholders  at the  annual
meeting.  The number of directors  may be changed from time to time by amendment
to these  bylaws,  but no decrease in the number of directors  shall shorten the
term of any director.


3.ELECTION AND TERM.

(A)The  directors are divided into three  classes,  as nearly equal in number as
the total number of directors  constituting  the entire board permits,  with the
term of  office of one class  expiring  each  succeeding  year.  At each  annual
meeting of  shareholders  the  successors  to the class of directors  whose term
shall then expire,  shall be elected to hold office  until the third  succeeding
annual meeting or until their respective  successors shall have been elected and
qualified, unless removed in accordance with these Bylaws. Directors need not be
shareholders or residents of Texas.  

(B)  Any  vacancies  in  the  board  of  directors  for  any  reason,   and  any
directorships  resulting  from any increase in the number of  directors,  may be
filled by the board of directors,  acting by a majority of the directors then in
office,  although  less than a quorum,  and any  directors  so chosen shall hold
office until the next election of the class for which such directors  shall have
been chosen or until their successors shall be elected and qualified.

4. DIRECTOR NOMINATION PROCEDURES.  Only persons who are nominated in accordance
with the  procedures  set forth in this Section 4 shall be eligible for election
as directors.  Nominations  of persons for election to the board of directors of
the  corporation  may be made  at a  meeting  of  shareholders  (h)by  or at the


                                       53





direction of the board of directors or (i)by any  shareholder of the corporation
entitled to vote for the election of directors at the meeting who complies  with
the notice procedures set forth in this Section 4. Such nominations,  other than
those  made by or at the  direction  of the  board of  directors,  shall be made
pursuant to timely notice in writing to the secretary of the corporation.  To be
timely,  a shareholder's  notice shall be delivered to or mailed and received at
the principal  executive  offices of the corporation (a)in the case of an annual
meeting,  not  less  than 60 days  nor  more  than 90 days  prior  to the  first
anniversary of the preceding year's annual meeting;  provided,  however, that in
the event  that the date of the  annual  meeting is changed by more than 30 days
from such  anniversary  date,  notice by the shareholder to be timely must be so
received not later than the close of business on the 10th day  following the day
on which such notice of the date of the meeting was mailed or public  disclosure
was made, and (b)in the case of a special  meeting at which  directors are to be
elected,  not later than the close of business on the 10th day following the day
on which such notice of the date of the meeting was mailed or public  disclosure
was made.  Such  shareholder's  notice shall set forth (a)as to each person whom
the shareholder  proposes to nominate for election or re-election as a director,
(i) the name, age, business address and residence  address of such person,  (ii)
the  principal  occupation  or  employment  of such person,  (iii) the class and
number of shares,  if any, of the corporation  which are  beneficially  owned by
such  person,  and (iv) any other  information  relating  to such person that is
required to be disclosed in  solicitations of proxies for election of directors,
or is otherwise  required,  in each case  pursuant to  Regulation  14A under the
Securities  Exchange Act of 1934, as amended  (including without limitation such
persons'  written consent to being named in the proxy statement as a nominee and
to serving as a director if elected);  and (b)as to the  shareholder  giving the
notice (i) the name and address,  as they appear on the corporation's  books, of
such  shareholder  and (ii) the  class and  number of shares of the  corporation
which are beneficially owned by such shareholder. At the request of the board of
directors  any person  nominated  by the board of  directors  for  election as a
director  shall furnish to the  secretary of the  corporation  that  information
required to be set forth in a shareholder's  notice of nomination which pertains
to the  nominee.  No person  shall be eligible for election as a director of the
corporation unless nominated in accordance with the procedures set forth in this
Section 4. The chairman of the meeting shall,  if the facts  warrant,  determine
and declare to the meeting that a nomination was not made in accordance with the
procedures prescribed by the Bylaws, and if he should so determine,  he shall so
declare to the meeting and the defective nomination shall be disregarded.


5. REMOVAL. Any director or the entire board of directors of the corporation may
be removed at any time,  with cause by the  affirmative  vote of the  holders of
sixty-six and two-thirds  percent (66-2/3%) or more of the outstanding shares of
capital stock of the  corporation  entitled to vote generally in the election of
directors cast at a meeting of the shareholders  called for that purpose and for
which notice was provided in accordance with these Bylaws.


                                       54





6. MEETING OF DIRECTORS.  The directors may hold their  meetings and may have an
office and keep the books of the  corporation,  except as otherwise  provided by
statute,  in such place or places in the State of Texas, or outside the State of
Texas, as the board of directors may from time to time determine.  The directors
may hold their meetings in any manner permitted by law, including, by conference
telephone or similar communications equipment by means of which all participants
can hear each other.


7. FIRST  MEETING.  Each newly  elected  board of  directors  may hold its first
meeting for the purpose of organization  and the  transaction of business,  if a
quorum is present, immediately after and at the same place as the annual meeting
of the shareholders, and no notice of such meeting shall be necessary.


8. ELECTION OF OFFICERS.  At the first meeting of the board of directors in each
year at which a quorum shall be present, directors shall proceed to the election
of the officers of the corporation.


9. REGULAR MEETINGS. Regular meetings of the board of directors shall be held in
any  manner  permitted  by law or these  Bylaws  and at such times and places as
shall be designated,  from time to time by resolution of the board of directors.
Notice of such regular meetings shall not be required.


SPECIAL MEETINGS. Special meetings of the board of directors shall be held in
any manner permitted by law or these Bylaws and whenever called by the chairman
of the board, the present or by a majority of the directors for the time being
in office.


10. NOTICE.  The secretary  shall give notice of each special meeting in person,
or by mail or  telegraph  at  least  two (2) days  before  the  meeting  to each
director.  The attendance of a director at any meeting or the participation by a
director in a  conference  meeting  shall  constitute a waiver of notice of such
meeting,  except  where a  director  attends  a  meeting  or  participates  in a
conference  meeting for the express  purpose of objecting to the  transaction of
any business on the grounds that the meeting is not lawfully called or convened.
Neither  the  business to be  transacted  at, nor the purpose of, any regular or
special  meeting of the board of  directors  need be  specified in the notice or
waiver of notice of such meeting.

         At any meeting at which every director shall be present in person or by
participation, even though without any notice, any business may be transaction.

         Whenever any notice is required to be given to any director, a waiver
thereof in writing signed by such person(s) entitled thereto (whether signed
before or after the time required for such notice) shall be equivalent to the
giving of such notice.


12. QUORUM. A majority of the directors fixed by these Bylaws shall constitute a
quorum for the  transaction  of business,  but if at any meeting of the board of


                                       55





directors  there be less than a quorum  present,  a majority of those present or
any  director  solely  present may adjourn the meeting from time to time without
further notice.  The act of a majority of the directors  present at a meeting at
which a quorum  is in  attendance  shall be the act of the  board of  directors,
unless the act of a greater  number is  required  by  statute,  the  Articles of
Incorporation, or by these Bylaws.


13. ORDER OF BUSINESS. At meetings of the board of directors,  business shall be
transacted in such order as from time to time the board may determine.

         At all meetings of the board of directors, the chairman of the board of
directors shall preside, in the absence of the chairman of the board, the vice
chairman of the board (if any) shall preside. In the absence of the chairman and
vice chairman of the board, the chief executive officer shall preside, and in
the absence of all three such officers, the president shall preside. If none of
the above enumerated officers are present, a chairman shall be chosen by the
board from among the directors present.

         The secretary of the corporation shall act as secretary of all meetings
of the board of directors, but in the absence of the secretary the presiding
officer may appoint any person to act as secretary of the meeting.


14. ACTION BY WRITTEN  CONSENT.  Any action required or permitted to be taken by
the board of directors or executive committee,  under the applicable  provisions
of the statutes,  the Articles of  Incorporation  or these Bylaws,  may be taken
without a meeting if a consent in writing, setting forth the action so taken, is
signed by all the members of the board of directors or executive  committee,  as
the case may be.


15.  COMPENSATION.  Directors  as such shall not receive  any stated  salary for
their  services,  but by  resolution  of the  board a fixed sum and  expense  of
attendance,  if any,  may be allowed for  attendance  at such regular or special
meetings of the board; provided that nothing contained herein shall be construed
to preclude any director from serving the  corporation  in any other capacity or
receiving compensation therefor.


16.  PRESUMPTION OF ASSENT.  A director of the  corporation  who is present at a
meeting of the board of  directors  or by law at which  action of any  corporate
matter is taken  shall be presumed  to have  assented  to the action  unless his
dissent  shall be entered in the  minutes of the meeting or unless he shall file
his written  dissent to such action with the person  acting as  secretary of the
meeting  before  the  adjournment  thereof  or shall  forward  such  dissent  by
registered  mail to the  Secretary  of the  Corporation  immediately  after  the
adjournment of the meeting.  Such right to dissent shall not apply to a director
who voted in favor of such action.


17. COMMITTEES.  The board of directors,  by resolution adopted by a majority of
the  number  of  directors  fixed by these  Bylaws,  may  designate  one or more
directors to constitute  an Executive  Committee or any other  committee,  which
committees,  to the  extent  provided  in such  resolution,  shall  have and may
exercise  all of the  authority  of the board of  directors  in the business and


                                       56





affairs of the  corporation  except  where  action of the board of  directors is
specified by law, but the  designation  of any such committee and the delegation
thereto of authority shall not operate to relieve the board of directors, or any
member  thereof,  of any  responsibility  imposed  upon  it or him by  law.  The
executive committee shall keep regular minutes of its proceedings and report the
same to the board when required.


                                  ARTICLE III
                                    OFFICERS

1.  NUMBER,  TITLES AND TERM OF OFFICE.  The officers of the  corporation  shall
consist of a chairman  of the board,  a chief  executive  officer  (who may also
serve as the president),  a president, one or more vice presidents, a secretary,
a treasurer,  and such other officers as the board of directors may from time to
time elect or appoint.  The officers of the  corporation may also include a vice
chairman of the board. Each officer shall hold office until his or her successor
shall have been duly  elected by the board and  qualified  or until his death or
until  he or she  shall  resign  or  shall  have  been  removed  in  the  manner
hereinafter  provided.  One  person may hold more than one  office.  None of the
officers need be a director.


2. REMOVAL.  Any officer or agent elected or appointed by the board of directors
may be removed  by the board of  directors  whenever  in its  judgment  the best
interests of the corporation  will be served thereby,  but such removal shall be
without  prejudice  to the  contract  rights,  if any, of the person so removed.
Election  or  appointment  of an  officer  or agent  shall not of itself  create
contract rights.


3. VACANCIES.  A vacancy in the office of any officer may be filled by vote of a
majority of the directors for the unexpired portion of the term.


4. SALARIES.  The salaries of all officers of the corporation  shall be fixed
by the board of directors except as otherwise directed by the board.


5.  POWERS AND DUTIES OF THE  CHAIRMAN OF THE BOARD.  The  chairman of the board
shall preside at all meetings of the  shareholders and of the board of directors
and shall advise and counsel the chief executive  officer and other officers and
shall have such other  powers and duties as from time to time may be assigned to
him by the board of directors. If the board of directors designates the chairman
of the board as the chief executive officer of the corporation,  the chairman of
the board  shall have the powers  and duties of the chief  executive  officer as
enumerated below.


6. POWERS AND DUTIES OF  VICE-CHAIRMAN  OF THE BOARD.  The  vice-chairman of the
board shall, if any, in the absence if the chairman of the board, preside at all
meetings of the  shareholders  and of the board. He shall have such other powers
and perform such other duties as from time to time may be assigned to him by the
board or the chairman of the board..


                                       57





7. POWERS AND DUTIES OF THE CHIEF EXECUTIVE OFFICER. The chief executive officer
shall have general supervision,  direction and active management of the business
and affairs of the  corporation,  general control over the property and business
of the  corporation,  and over all other  officers,  agents and employees of the
corporation,  other than the chairman and/or vice chairman of the board, subject
to the control and  direction  of the board of  directors.  The chief  executive
officer  will be  responsible  for the  execution  of the  policies,  orders and
resolutions  of the board and shall  perform  such other duties and may exercise
such other powers as from time to time may be assigned to him by the board under
these bylaws.  In the absence of the chairman of the board and the vice chairman
of the board,  the chief  executive  officer  will  preside  when present at all
meetings of the stockholders and the board.


8. POWERS AND DUTIES OF THE PRESIDENT. The president,  subject to the direction
of the chief  executive  officer (if different than the president) and the board
of  directors,  shall have  general  management  and  control of the  day-to-day
business  operations and properties of the corporation with all such powers with
respect to such responsibilities;  he shall preside in the absence of all of the
chairman of the board,  the vice  chairman of the board and the chief  executive
officer at all meetings of the  shareholders  and of the board of directors.  If
designated as chief executive  officer of the  corporation,  the president shall
have the powers and duties of the chief executive officer as enumerated above.


9. VICE PRESIDENTS. Each vice president shall have such powers and duties as may
be assigned to him by the board of  directors  and shall  exercise the powers of
the  president  during that  officer's  absence or  inability to act. Any action
taken by a vice  president  in the  performance  of the duties of the  president
shall be conclusive evidence of the absence or inability to act of the president
at the time such action was taken.


10. TREASURER.  The treasurer shall have custody of all the funds and securities
of the corporation  which come into his hands.  When necessary or proper, he may
endorse, on behalf of the corporation,  for collection,  checks, notes and other
obligations  and shall deposit the same to the credit of the corporation in such
bank or banks or depositories as shall be designated in the manner prescribed by
the board of directors;  he may sign all receipts and vouchers for payments made
to the  corporation,  either  alone or  jointly  with such  other  officer as is
designated  by the  board  of  directors.  Whenever  required  by the  board  of
directors,  he shall render a statement of his cash  account;  he shall enter or
cause to be entered  regularly in the books of the corporation to be kept by him
for that purpose full and accurate  accounts of all monies received and paid out
on  account  of the  corporation;  he shall  perform  all acts  incident  to the
position  of  treasurer  subject to the  control of the board of  directors;  he
shall,  if required by the board of  directors,  give such bond for the faithful
discharge of his duties in such form as the board of directors may require.


11. ASSISTANT  TREASURER.  Each assistant  treasurer shall have the usual powers
and duties pertaining to his office,  together with such other powers and duties
as may be assigned to him by the board of  directors.  The  assistant  treasurer


                                       58





shall  exercise the powers of the  treasurer  during that  officer's  absence or
inability to act.


12.  SECRETARIES.  The  secretary  shall keep the minutes of all meetings of the
board of directors and the minutes of all meetings of the  shareholders in books
provided for that purpose or in any other form capable of being  converted  into
written form within a reasonable time; he shall attend to the giving and serving
of all notices;  he may sign with the president in the name of the  corporation,
all contracts of the corporation and affix the seal of the corporation  thereto;
he may sign with the president all  certificates for shares of the capital stock
of the  corporation;  he shall have charge of the  certificate  books,  transfer
books  and  stock  ledgers,  and such  other  books  and  papers as the board of
directors may direct,  all of which shall at all reasonable times be open to the
inspection of any director  upon  application  at the office of the  corporation
during  business  hours,  and he shall in general perform all duties incident to
the office of secretary, subject to the control of the board of directors.


13. ASSISTANT SECRETARIES.  Each assistant secretary shall have the usual powers
and duties pertaining to his office,  together with such other powers and duties
as may be  assigned  to him by the  board of  directors  or the  secretary.  The
assistant  secretaries  shall  exercise the powers of the secretary  during that
officer's absence or inability to act.


                                   ARTICLE IV
                         INDEMNIFICATION AND INSURANCE

1. INDEMNIFICATION OF DIRECTORS.


A. Definitions.  For purposes of this Article:

   1. "Expenses" include court costs and attorneys' fees.

   2. "Official capacity" means

      a)when used with respect to a director, the office
      of director in the corporation, and

      b)when used with respect to a person other than a director,
      the elective or appointive office in the corporation held by the officer
      or the employment or agency relationship undertaken by the employee or
      agent on behalf of the corporation, but

      c)in both Paragraphs (a) and (b) , such term does not include service for
      any other foreign or domestic corporation or any partnership, joint


                                       59





      venture, sole proprietorship, trust, employee benefit plan, or other
      enterprise, except as may otherwise be specified in Section 2 or 3
      hereunder.

   3. "Proceeding"  means any  threatened,  pending,  or completed  action,
suit, or proceeding,  whether civil,  criminal,  administrative,
arbitrative,  or investigative,  any appeal in such an action, suit, or
proceeding, and any inquiry or investigation that could lead to
such an action, suit, or proceeding.

B. Indemnification  where director has been wholly successful in the proceeding.
The corporation shall indemnify a director against reasonable  expenses incurred
by him in  connection  with a  proceeding  in which he is a named  defendant  or
respondent because he is or was a director if he has been wholly successful,  on
the merits or otherwise, in the defense of the proceeding.

C. Indemnification where director has not been wholly successful in proceeding.

   1. The  corporation  shall  indemnify a person who was, is, or is  threatened
to be made a named  defendant or respondent in a proceeding because the person
is or was a director of the  corporation,  and who does not qualify for
indemnification  under subsection B of this Section, if it is determined, in
accordance with the procedure set out in Section F of Article 2.02-1 of the
TBCA, that the person:

      a) conducted himself in good faith;

      b) reasonably believed:

         i) in the case of conduct in his  official  capacity as a director of
         the  corporation,  that his  conduct was in the  corporation's  best
         interests; and

         ii)in all other cases, that his conduct was at least not opposed to the
         corporation's best interests; and

      c)in the case of any criminal proceeding, had no reasonable cause to
      believe his conduct was unlawful.

         If it is determined pursuant to Section F of Article 2.02-1 of the TBCA
that indemnification is to be authorized, the corporation shall determine the
reasonableness of the expenses claimed by the director seeking indemnification
in accordance with the procedure set out in Section G of Article 2.02-1 of the
TBCA.


   2. The termination of a proceeding by judgment, order, settlement, or
 conviction, or on a plea of nolo contendere or its equivalent, is not of itself
determinative that the person did not meet the requirements set forth in


                                       60





subsection C(1) hereof. A person shall be deemed to have been found liable in
respect of any claim, issue or matter only after the person shall have been so
adjudged by a court of competent jurisdiction after exhaustion of all appeals
therefrom.

   3. A person shall be indemnified under subsection C(1) hereof against
   judgments, penalties (including excise and similar taxes), fines,
   settlements, and reasonable expenses actually incurred by the person in
   connection with the proceeding; but if the person is found liable to the
   corporation or is found liable on the basis that personal benefit was 
   improperly received by the person, the indemnification (1) is limited to
   reasonable expenses actually incurred by the person in connection with the
   proceeding and (2) shall not be made in respect of any proceeding in which
   the person shall have been found liable for willful or intentional misconduct
   in the performance of his duty to the corporation.

   3. except as  otherwise  provided in  subsection  C(3),  a director  may not
   be  indemnified  under  subsection C(1)  of this  Section for obligations
   resulting from a proceeding:

      a) in which the director is found liable on the basis that personal
      benefit was improperly received by him, whether or not the benefit
      resulted from an action in the director's official capacity; or

      b) in which the director is found liable to the corporation.

   D.Court-ordered indemnification. A director may apply to a court of competent
jurisdiction for indemnification from the corporation, whether or not he has met
the requirements set forth in subsection CC(1) hereof or has been adjudged
liable in the circumstances set out in the second clause of subsection CC(3)
hereof. If a director of the corporation seeks to obtain court-ordered
indemnification pursuant hereto, the corporation and its board of directors
shall cooperate fully with such director in satisfying the procedural steps
required therefor.

   E.Advancement of expenses. Reasonable expenses incurred by a director who
was, is, or is threatened to be made a named defendant or respondent in a 
proceeding shall be paid or reimbursed by the corporation in advance of the
final disposition of the proceeding and without any of the determinations
specified in Sections F and G of Article 2.02-1 of the TBCA if the requirements 
of Sections K and L of Article 2.02-1 of the TBCA are satisfied. The board of
directors may authorize the corporation's counsel to represent such individual
in any proceeding, whether or not the corporation is a party thereto.

   F. Directors as witnesses. The corporation shall pay or reimburse expenses 
incurred by a director in connection with his appearance as a witness or other
participation in a proceeding at a time when he is not a named defendant or
respondent in the proceeding.


                                       61





   G.Notice to shareholders. Any indemnification of or advancement of expenses
to a director in accordance with this Section shall be reported in writing to
the shareholders of the corporation with or before the notice or waiver of
notice of the next shareholders' meeting or with or before the next submission
to shareholders of a consent to action without a meeting pursuant to Section A
of Article 9.10 of the TBCA and, in any case, within the twelve-month period
immediately following the date of the indemnification or advance.

   H. Directors' services to benefit plans. For purposes of this Article IV, the
corporation is deemed to have requested a director to serve an employee benefit
plan whenever the performance by him of his duties to the corporation also
imposes duties on or otherwise involves services by him to the plan or
participants or beneficiaries of the plan. Excise taxes assessed on a director
with respect to an employee benefit plan pursuant to applicable law are deemed
fines. Action taken or omitted by him with respect to an employee benefit plan
in the performance of his duties for a purpose reasonably believed by him to be
in the interest of the participants and beneficiaries of the plan is deemed to
be for a purpose which is not opposed to the best interests of the corporation.

2.INDEMNIFICATION OF OFFICERS

   A. In general. The corporation shall indemnify and advance expenses to an  
officer of the corporation in the same manner and to the same extent as is 
provided by Section 1 of this Article for a director. An officer is entitled to 
seek indemnification to the same extent as a director.

   B. Additional rights to indemnification. The corporation may, at the 
discretion of the board of directors in view of all the relevant circumstances, 
indemnify and advance expenses to a person who is an officer, employee or agent 
of the corporation and who is not a director of the corporation to such further 
extent, consistent with law, as may be provided by its Articles of 
Incorporation, by general or specific actions of its board of directors, by 
contract, or as permitted or required by common law.

3. INDEMNIFICATION OF OTHER PERSONS. The corporation may, at the discretion of
the board of directors in view of the relevant circumstances, indemnify and
advance expenses to persons who are not or were not officers, employees, or 
agents of the corporation but who are or were serving at the request of the 
corporation as directors, officers, partners, venturers, proprietors, trustees, 
employees, agents, or similar functionaries of another foreign or domestic 
corporation, partnership, joint venture, sole proprietorship, trust, employee 
benefit plan, or other enterprise, to the same extent that it may indemnify and 
advance expenses to directors hereunder.


4.0PROCEDURE FOR INDEMNIFICATION. To request indemnification pursuant hereto,
written notice describing the circumstances and proceedings giving rise to such
request shall be submitted to the corporation at 16825 Northchase Drive, Suite


                                       62





400, Houston, Texas 77060. Any indemnification of a director or officer of the
corporation, or another person entitled to indemnification pursuant to Section 3
hereof, or advance of costs, charges and expenses to a director or officer or
another person entitled to indemnification pursuant to Section 3 hereof, shall
be made promptly, and in any event within 30 days, upon the written notice of
such individual. If a determination by the corporation that the individual is
entitled to indemnification pursuant to this Article is required, and the
corporation fails to respond within 60 days to a written request for indemnity,
the corporation shall be deemed to have approved such request. If the
corporation denies a written request for indemnity or advancement of expenses,
in whole or in part, or if payment in full pursuant to such request is not made
within 30 days, the right to indemnification or advances as granted by this
Article shall be enforceable by such individual in any court of competent
jurisdiction in Harris County, Texas. It shall be a defense to any such action
(other than an action brought to enforce a claim for the advance of reasonable
expenses where the required undertaking, if any, has been received by the
corporation) that the claimant has not met the standard of conduct set forth in
subsection 11.C(1) hereof, but the burden of proving such defense shall be on
the corporation. Neither the failure of the corporation to have made a
determination prior to the commencement of such action that indemnification of
the claimant is proper in the circumstances because he has met the applicable
standard of conduct set forth in subsection 11.C(1) hereof, nor the fact that
there has been an actual determination by the corporation that the claimant has
not met such applicable standard of conduct, shall be a defense to the action or
create a presumption that the claimant has not met the applicable standard of
conduct.


5. SURVIVAL; PRESERVATION OF OTHER RIGHTS. The foregoing indemnification
provisions contained in this Article shall be deemed to be a contract between 
the corporation and each director, officer, employee or agent, or another person
entitled to indemnification pursuant to Section 3 hereof, who serves in any such
capacity at any time while these provisions, as well as the relevant provisions
of the TBCA are in effect, and any repeal or modification thereof shall not
affect any right or obligation then existing with respect to any state of facts
then or previously existing or any action, suit or proceeding previously or
thereafter brought or threatened based in whole or in part upon any such state
of facts. Such a "contract right" may not be modified retroactively without the
consent of such director or officer, employee, agent or another person entitled
to indemnification pursuant to Section 3 hereof. Notwithstanding this provision,
the corporation may enter into additional contracts of indemnity with these
persons, which contracts may provide the same rights as provided by this
Article, or may restrict or increase the rights provided by this Article.


6. INSURANCE. The corporation may purchase and maintain insurance on behalf of 
any person who is or was a director, officer, employee, or agent of the 
corporation or who is or was serving at the request of the corporation as a 
director, officer, partner, venturer, proprietor, trustee, employee, agent, or 
similar functionary of another foreign or domestic corporation, partnership, 
joint venture, sole proprietorship, trust, other enterprise, or employee benefit


                                       63





plan, against any liability asserted against him and incurred by him in such a
capacity or arising out of his status as such a person, whether or not the
corporation would have the power to indemnify him against that liability
hereunder. If the insurance or other arrangement is with a person or entity that
is not regularly engaged in the business of providing insurance coverage, the
insurance or arrangement may provide for payment of a liability with respect to
which the corporation would not have the power to indemnify the person only if
including coverage for the additional liability has been approved by the
shareholders of the corporation. Without limiting the power of the corporation
to procure or maintain any kind of insurance or other arrangement, the
corporation may, for the benefit of persons indemnified by the corporation, (1)
create a trust fund; (2) establish any form of self-insurance; (3) secure its
indemnity obligation by grant of a security interest or other lien on the assets
of the corporation; or (4) establish a letter of credit, guaranty, or surety
arrangement. The insurance or other arrangement may be procured, maintained, or
established within the corporation or with any insurer or other person deemed
appropriate by the board of directors regardless of whether all or part of the
stock or other securities of the insurer or other person are owned in whole or
part by the corporation. In the absence of fraud, the judgment of the board of
directors as to the terms and conditions of the insurance or other arrangement
and the identity of the insurer or other person participating in an arrangement
shall be conclusive and the insurance or arrangement shall not be voidable and
shall not subject the directors approving the insurance or arrangement to
liability, on any ground, regardless of whether directors participating in the
approval are beneficiaries of the insurance or arrangement.


7. SEVERABILITY. If this Article or any portion hereof shall be invalidated on 
any ground by any court of competent jurisdiction, then the corporation shall
nevertheless indemnify each director or officer, employee or agent, as to
expenses, judgments, fines and amounts paid in settlement with respect to any
proceeding, to the fullest extent permitted by any applicable portion of this
Article that shall not have been invalidated and to the fullest extent permitted
by applicable law. If any provision hereof should be held, by a court of
competent jurisdiction, to be invalid, it shall be limited only to the extent
necessary to make such provision enforceable, it being the intent of these
Bylaws to indemnify each individual who serves or who has served as a director,
officer, employee or agent, to the maximum extent permitted by laws.


                                   ARTICLE V
                                 CAPITAL STOCK

1.CERTIFICATE OF SHARES. The certificates for shares of the capital stock of the
corporation shall be in such form as shall be approved by the board of
directors. The certificates shall be signed by the chief executive officer,
president or any vice president, and also by the secretary or an assistant
secretary or by the treasurer or an assistant treasurer and may be sealed with
the seal of this corporation or a facsimile thereof. Where any such certificate


                                       64





is countersigned by a transfer agent, or registered by a registrar, either of
which is other than the corporation itself or an employee of the corporation,
the signatures of any such president or vice president and secretary or
assistant secretary may be facsimiles. They shall be consecutively numbered and
shall be entered in the books of the corporation as they are issued and shall
exhibit the holder's name and the number of shares.


2. TRANSFER OF SHARES. The shares of stock of the corporation shall be 
transferable only on the books of the corporation by the holders thereof in 
person or by their duly authorized attorneys or legal representatives, upon 
surrender to the corporation of a certificate for share duly endorsed or 
accompanied by proper evidence of succession, assignment or authority to 
transfer, and it shall be the duty of the corporation to issue a new certificate
to the person entitled thereto for a like number of shares to cancel the old 
certificate, and to record the transaction upon its books.


3. CLOSING OF TRANSFER BOOKS. For the purpose of determining shareholders 
entitled to notice of or to vote at any meeting of shareholders, or any 
adjournment thereof, or entitled to receive payment of any dividend, or in order
to make a determination of shareholders for any other proper purpose, the board
of directors of the corporation may provide that the stock transfer books shall 
be closed for a stated period but not to exceed, in any case, fifty (50) days. 
If the stock transfer books shall be closed for the purpose of determining
shareholders entitled to notice of or to vote at a meeting of shareholders, such
books shall be closed for at least ten (10) days immediately preceding such
meeting. In lieu of closing the stock transfer books, the board of directors may
fix in advance a date as the record date for any such determination of
shareholders, such date in any case to be not more than fifty (50) days and, in
case of a meeting of shareholders, not less than ten (10) days prior to the date
on which the particular action requiring such determination of shareholders is
to be taken. If the stock transfer books are not closed and no record date is
fixed for the determination of shareholders entitled to notice of or to vote at
a meeting of shareholders, or shareholders entitled to receive payment of a
dividend, the date on which the notice of the meeting is mailed or the date on
which the resolution of the board of directors declaring such dividend is
adopted, as the case may be, shall be the record date for such determination of
shareholders. When a determination of shareholders entitled to vote at any
meeting of shareholders has been made as herein provided, such determination
shall apply to any adjournment thereof except where the determination has been
made through the closing of stock transfer books and the stated period of
closing has expired.


4. REGISTERED SHAREHOLDERS. The corporation shall be entitled to recognize the
exclusive right of a person registered on its books as the owner of the share to
receive dividends, and to vote as such owner, and for all other purposes as such
owner; and the corporation shall not be bound to recognize any equitable or
other claim to or interest in such share or shares on the part of any other
person, whether or not it shall have express or other notice thereof, except as
otherwise provided by the laws of Texas.


                                       65





5. LOST CERTIFICATE. The board of directors may direct a new certificate or
certificates to be issued in place of any certificate or certificates
theretofore issued by the corporation alleged to have been lost or destroyed,
upon the making of an affidavit of that fact by the person claiming the
certificate of stock to be lost or destroyed. When authorizing such issue of a
new certificate or certificates, the board of directors may, in its discretion
and as a condition precedent to the issuance thereof, require the owner of such
lost or destroyed certificate or certificates, or his legal representative, to
advertise the name in such manner as it shall require and/or give the
corporation a bond in such sum as it may direct as indemnity against any claim
that may be made against the corporation with respect to the certificate alleged
to have been lost or destroyed.


6. REGULATIONS. The board of directors shall have power and authority to make 
all such rules and regulations as they may deem expedient concerning the issue,
transfer and registration or the replacement of certificates for shares of the
capital stock of the corporation not inconsistent with these Bylaws.


                                   ARTICLE VI
                                    ACCOUNTS

1. DIVIDENDS. The board of directors may from time to time declare, and the
corporation may pay, dividends on its outstanding shares, except when the
declaration or payment thereof would be contrary to statute or the Articles of
Incorporation. Such dividends may be declared at any regular or special meeting
of the board, and the declaration and payment shall be subject to all applicable
provisions of laws, the Articles of Incorporation and these Bylaws.


2. RESERVES. Before payment of any dividend, there may be set aside out of any
funds of the corporation available for dividends such sum or sums as the
directors from time to time, in their absolute discretion, deem proper as a
reserve fund to meet contingencies, or for equalizing dividends, or for
repairing or maintaining any property of the corporation, or for such other
purpose as the directors shall think conducive to the interest of the
corporation, and the directors may modify or abolish any such reserve in the
manner in which it was created.


3. DIRECTORS' ANNUAL STATEMENT. The board of directors shall present at each 
annual meeting a full and clear statement of the business and condition of the
corporation. The officers of the corporation shall mail to any shareholder of
record, upon his written request, the latest annual financial statement and the
most recent interim financial statements, if any, which have been filed in a
public record or otherwise published.


4. CHECKS. All checks or demands for money and notes of the corporation shall be
signed by such officer or officers or such other person or persons as the board
of directors may from time to time designate.


                                       66





5.FISCAL YEAR. The fiscal year of the corporation shall be such as established 
by resolution of the board of directors.


                                  ARTICLE VII
                                   AMENDMENTS

         These Bylaws may be altered, amended or repealed or new Bylaws may be
adopted at any annual meeting of the board of directors or at any special
meeting of the board of directors at which a quorum is present provided notice
of the proposed alteration, amendment, repeal or adoption be contained in the
notice of such meeting, by the affirmative vote of a majority of the Continuing
Directors (as that term is defined in Article I, Section 2; provided, however,
that no change of the time or place of the annual meeting of the board of
directors shall be made after the issuance of notice thereof. In accordance with
the Articles of Incorporation, the shareholders may amend or repeal any
provisions of these Bylaws adopted by the board of directors, but only by the
affirmative vote of the holders of sixty-six and two-thirds percent (66 2/3%) or
more of the outstanding capital stock of the corporation.


                                  ARTICLE VIII
                            MISCELLANEOUS PROVISIONS

1.0OFFICES. Until the board of directors otherwise determines, the registered
office of the corporation required by the TBCA to be maintained in the state of
Texas shall be that registered office set forth in the Articles of
Incorporation, but such registered office may be changed from time to time by
the board of directors in the manner provided by law and need not be identical
to the principal place of business of the corporation.


2.0SEAL. The seal of the corporation shall be such as from time to time may be
approved by the board of directors, but the use of a seal shall not be essential
to the validity of any agreement.


3. NOTICE AND WAIVER OF NOTICE. Whenever any notice whatever is required to be
given under the provisions of these Bylaws, said notice shall be deemed to be
sufficient if given by depositing the same in a post office box in a sealed
postpaid wrapper addressed to the person entitled thereto at his post office
address, as it appears on the books of the corporation, and such notice shall be
deemed to have been given on the day of such mailing. A waiver of notice, signed
by the person or persons entitled to said notice, whether before or after the
time stated therein, shall be deemed equivalent thereto.


4.RESIGNATIONS. Any director or officer may resign at any time. Such 
resignations shall be made in writing and shall take effect at the time 
specified therein, or, if no time be specified, at the time of its receipt by 


                                       67





the president or secretary. The acceptance of a resignation shall not be 
necessary to make it effective, unless expressly so provided in the resignation.


5. SECURITIES OF OTHER CORPORATIONS. The chairman of the board, the president or
any vice president of the corporation shall have power and authority to
transfer, endorse for transfer, vote, consent or take any other action with
respect to any securities of another issuer which may be held or owned by the
corporation and to make, execute and deliver any waiver, proxy or consent with
respect to any such securities.





                                                                                
                                                       -------------------------
                                                        Karen Bryant, Secretary


                                       68





                                                                    Exhibit 10.1


         FIRST AMENDMENT TO FIRST AMENDED AND RESTATED CREDIT AGREEMENT

         This FIRST AMENDMENT TO FIRST AMENDED AND RESTATED CREDIT AGREEMENT
(this "First Amendment") is made and entered into effective as of October 21,
2005, by and among SWIFT ENERGY COMPANY, a Texas corporation (the "Borrower"),
each lender that is a signatory hereto or becomes a signatory hereto as provided
in Section 9.1 of the Credit Agreement (individually, together with its
successors and assigns, a "Lender" and, collectively, together with their
respective successors and assigns, the "Lenders"), and JPMORGAN CHASE BANK,
N.A., (successor by merger to Bank One, NA (Main Office Chicago)), a national
banking association, as Administrative Agent for the Lenders (in such capacity,
together with its successors in such capacity pursuant to the terms hereof, the
"Administrative Agent"), J.P. MORGAN SECURITIES, INC. as Sole Lead Arranger and
Sole Book Runner, WELLS FARGO BANK, NATIONAL ASSOCIATION, as Syndication Agent,
BNP PARIBAS, as Syndication Agent, CALYON as Documentation Agent and SOCIETE
GENERALE as Documentation Agent.

                               W I T N E S S E T H

         WHEREAS, the above named parties did execute and exchange counterparts
of that certain First Amended and Restated Credit Agreement dated June 29, 2004
(the "Agreement"), to which reference is here made for all purposes;

         WHEREAS, the parties subject to and bound by the Agreement are desirous
of amending the Agreement in the particulars hereinafter set forth;

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
of the parties to the Agreement, as set forth therein, and the mutual covenants
and agreements of the parties hereto, as set forth in this First Amendment, the
parties hereto agree as follows:


                                   ARTICLE I
                                  DEFINITIONS

1.01 Terms Defined Above. As used herein, each of the terms "Administrative
 Agent",  "Agreement,"  "Borrower," "First Amendment," "Lender," and "Lenders" 
shall have  the meaning assigned to such term hereinabove.

1.02 Terms Defined in Agreement. As used herein, each term defined in the 
Agreement shall have the meaning assigned thereto in the Agreement, unless 
expressly provided herein to the contrary.

1.03 References. References in this First Amendment to Article or Section 
numbers shall be to Articles and Sections of this First Amendment, unless 
expressly stated herein to the contrary. References in this First Amendment to


                                       69





"hereby," "herein," hereinafter," hereinabove," "hereinbelow," "hereof," and 
"hereunder" shall be to this First Amendment in its entirety and not only to 
the particular Article or Section in which such reference appears.

1.04 Articles and Sections. This First Amendment, for convenience only, has been
divided into Articles and Sections and it is understood that the rights, powers,
privileges, duties, and other legal relations of the parties hereto shall be
determined from this First Amendment as an entirety and without regard to such
division into Articles and Sections and without regard to headings prefixed to
such Articles and Sections.

1.05 Number and Gender. Whenever the context requires, reference herein made to 
the single number shall be understood to include the plural and likewise the 
plural shall be understood to include the singular. Words denoting sex shall be
construed to include the masculine, feminine, and neuter, when such construction
is appropriate, and specific enumeration shall not exclude the general, but
shall be construed as cumulative. Definitions of terms defined in the singular
and plural shall be equally applicable to the plural or singular, as the case
may be.


                                   ARTICLE II
                                   AMENDMENTS

         The Borrower, Administrative Agent and the Lenders hereby amend the
Agreement in the following particulars:


2.01 Amendment of Section 6.2(d).  Section 6.2(d) of the Agreement is hereby 
amended to read as follows:

"6.2 (d) advances to employees of the Borrower or such Subsidiary in the
ordinary course of business not exceeding $1,000,000 in the aggregate at any
time outstanding,"

2.02 Amendment of Section 6.7.  Section 6.7 of the Agreement is hereby amended 
to read as follows:

"6.7 Rental or Lease Agreements. Enter into any contract to rent or lease any
Properties, real or personal, the aggregate of rental and lease payments under
which for the Borrower, its Subsidiaries and the Partnerships on a consolidated
basis will exceed $7,500,000 in any calendar year or $30,000,000 during the term
of such leases; provided, however, the foregoing restriction shall not apply to
(a) bonuses and rentals paid under oil, gas and mineral leases, or (b) the lease
covering the corporate office of the Borrower."

2.03 Amendment of Exhibit VIII.  Exhibit VIII,  i.e.  "Subsidiaries  and  
Partnerships"  shall be as set forth on Exhibit VIII to this First Amendment.


                                       70





                                  ARTICLE III
                                   CONDITIONS

         The obligation of the Lenders to amend the Agreement as provided herein
is subject to the fulfillment of the following conditions precedent:


3.01 Receipt of Documents.  The Lenders shall have received,  reviewed, and 
approved the following documents and other items,  appropriately
executed when necessary and in form and substance satisfactory to the Lenders:

   a) multiple counterparts of this First Amendment, as requested by the Lender;
      and

   b) such other agreements, documents, items, instruments, opinions, 
   certificates, waivers, consents, and evidence as the Administrative Agent 
   may reasonably request.

3.02 Accuracy of  Representations  and  Warranties.  The  representations  and
warranties  contained in Article IV of the Agreement and this First Amendment 
shall be true and correct.

3.03 Matters  Satisfactory  to  Lenders.  All  matters  incident  to the  
consummation  of the  transactions  contemplated  hereby  shall be
satisfactory to the Administrative Agent and the Lenders.


                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

         The Borrower hereby expressly re-makes, in favor of the Lenders, all of
the representations and warranties set forth in Article IV of the Agreement, and
represents and warrants that all such representations and warranties remain true
and unbreached.



RATIFICATION
         Each of the parties hereto does hereby adopt, ratify, and confirm the
Agreement and the other Loan Documents, in all things in accordance with the
terms and provisions thereof, as amended by this First Amendment.


                                   ARTICLE V
                                 MISCELLANEOUS

6.01 Scope of Amendment. The scope of this First Amendment is expressly limited 
to the matters addressed herein and this First Amendment shall not operate as a
waiver of any past, present, or future breach, Default, or Event of Default
under the Agreement. except to the extent, if any, that any such breach,
Default, or Event of Default is remedied by the effect of this First Amendment.

6.02 Agreement as Amended. All references to the Agreement in any document 
heretofore or hereafter executed in connection with the transactions 
contemplated in the Agreement shall be deemed to refer to the Agreement as 
amended by this First Amendment.


                                       71





6.03 Parties in Interest. All provisions of this First Amendment shall be 
binding upon and shall inure to the benefit of the Borrower, the Administrative 
Agent and the Lenders and their respective successors and assigns.

6.04 Rights of Third Parties. All provisions herein are imposed solely and
exclusively for the benefit of the Administrative Agent, the Lenders and the
Borrower, and no other Person shall have standing to require satisfaction of
such provisions in accordance with their terms and any or all of such provisions
may be freely waived in whole or in part by the Lenders at any time if in their
sole discretion it deems it advisable to do so.

6.05 ENTIRE AGREEMENT. THIS FIRST AMENDMENT CONSTITUTES THE ENTIRE AGREEMENT 
BETWEEN THE PARTIES HERETO WITH RESPECT TO THE SUBJECT HEREOF AND SUPERSEDES 
ANY PRIOR AGREEMENT, WHETHER WRITTEN OR ORAL, BETWEEN SUCH PARTIES REGARDING 
THE SUBJECT HEREOF. FURTHERMORE IN THIS REGARD, THIS FIRST AMENDMENT, THE 
AGREEMENT, THE NOTE, THE SECURITY INSTRUMENTS, AND THE OTHER WRITTEN DOCUMENTS
REFERRED TO IN THE AGREEMENT OR EXECUTED IN CONNECTION WITH OR AS SECURITY FOR 
THE NOTES REPRESENT, COLLECTIVELY, THE FINAL AGREEMENT AMONG THE PARTIES 
THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR 
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL 
AGREEMENTS AMONG THE PARTIES.

6.06 JURISDICTION AND VENUE. ALL ACTIONS OR PROCEEDINGS WITH RESPECT TO, ARISING
DIRECTLY OR INDIRECTLY IN CONNECTION WITH, OUT OF, RELATED TO, OR FROM THIS
FIRST AMENDMENT, THE AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE LITIGATED IN
COURTS HAVING SITUS IN HARRIS COUNTY, TEXAS. EACH OF THE BORROWER, THE
ADMINISTRATIVE AGENT AND THE LENDERS HEREBY SUBMITS TO THE JURISDICTION OF ANY
LOCAL, STATE, OR FEDERAL COURT LOCATED IN HARRIS COUNTY, TEXAS, AND HEREBY
WAIVES ANY RIGHTS IT MAY HAVE TO TRANSFER OR CHANGE THE JURISDICTION OR VENUE OF
ANY LITIGATION BROUGHT AGAINST IT BY THE BORROWER, THE ADMINISTRATIVE AGENT OR
THE LENDERS IN ACCORDANCE WITH THIS SECTION.

                  (Remainder of Page Intentionally Left Blank)


                                       72






         IN WITNESS WHEREOF, this Agreement is executed effective as of the date
first above written.

                                                     BORROWER:

                                                     SWIFT ENERGY COMPANY



                                                     By:               
                                                        -----------------------
                                                     Alton D. Heckaman, Jr.
                                                     Executive Vice President
                                                     Chief Financial Officer





                                                     By:               
                                                        -----------------------
                                                     Adrian D. Shelley
                                                     Treasurer


Address for Notices:
Swift Energy Company
16825 Northchase Drive, Suite 400
Houston, Texas  77060
Attention:  Alton D. Heckaman, Jr.
Telecopy:  (281) 874-2701
















                       (Signatures Continued on Next Page)


                                       73





                        ADMINISTRATIVE AGENT AND LENDER:

                                             JPMORGAN  CHASE BANK,  N.A.,
                                             (successor  by merger to Bank One,
                                             NA (Main  Office Chicago))



                                             By:               
                                                 ------------------------------
                                                   Charles Kingswell-Smith
                                                   Director


Applicable Lending Office
for Alternative Base Rate Loans and
Eurodollar Rate Loans:

One Bank One Plaza
Chicago, Illinois  60670


Address for Notices:

600 Travis, 20th Floor
Houston, Texas  77002
Attention: Charles Kingswell-Smith
Telecopy:  (713) 216-7770















                       (Signatures Continued on Next Page)


                                       74





                                                     LENDER:

                                                     BANK OF SCOTLAND



                                             By: 
                                                --------------------------------
                                             Printed Name:     
                                                          ----------------------
                                             Title:            
                                                  ------------------------------


Applicable Lending Office
for Alternative Base Rate Loans and
Eurodollar Rate Loans:

565 Fifth Avenue
New York, New York 10017
Attention: Karen Workman

Address for Notices:
1021 Main Street, Suite 1370
Suite 1750
Houston, Texas 77002
Attention: Richard Butler
Telecopy: 713-651-9714

With a copy to:
Annie Glynn
565 Fifth Avenue
New York, New York 10017











                       (Signatures Continued on Next Page)


                                       75





                                                     LENDER:

                           NATEXIS BANQUES POPULAIRES



                                             By:               
                                                -------------------------------
                                             Printed Name:     
                                                          ---------------------
                                             Title:            
                                                   ----------------------------



Applicable Lending Office
for Alternative Base Rate Loans and
Eurodollar Rate Loans:

 
 
Attention:  


Address for Notices:

 
 
Attention:  
Telecopy:  



                                       76





                                             LENDER:

                                             UFJ BANK LIMITED



                                             By:               
                                                --------------------------------
                                             Printed Name:     
                                                          ----------------------
                                             Title:            
                                                   -----------------------------


Applicable Lending Office
for Alternative Base Rate Loans and
Eurodollar Rate Loans:

Park Avenue Plaza
55 East 52nd Street
New York, New York 10055
Attention: Wai Mei (Sandy) Lew

Address for Notices:
Park Avenue Plaza
55 East 52nd Street
New York, NY 10055
Attention:  Kentaro Yamagishi
Telecopy: 212-754-2360

with a copy to:

Mr. Clyde Redford
Vice President
UFJ Bank Limited
1200 Smith Suite 2670
Houston, Texas  77002







                       (Signatures Continued on Next Page)


                                       77





                         DOCUMENTATION AGENT AND LENDER:

                                            SOCIETE GENERALE



                                            By:               
                                               --------------------------------
                                            Printed Name:     
                                                         ----------------------
                                            Title:            
                                                  -----------------------------



Applicable Lending Office
for Alternative Base Rate Loans and
Eurodollar Rate Loans:

560 Lexington Avenue
New York, New York  10022
Attention: Arlene Tellerman
Telephone: 212-278-6086
Telecopy: 212-278-7490


Address for Notices:

1111 Bagby, Suite 2020
Houston, TX 77002
Attention: Mr. Jason Henderson
      Ms. Elena Robciuc
Telecopy: 713-650-0824










                       (Signatures Continued on Next Page)


                                       78





                         DOCUMENTATION AGENT AND LENDER:

                                            CALYON NEW YORK BRANCH



                                            By:               
                                               --------------------------------
                                            Printed Name:     
                                                         ----------------------
                                            Title:            
                                                  -----------------------------



                                            By:               
                                               --------------------------------
                                            Printed Name:     
                                                         ----------------------
                                            Title:            
                                                  -----------------------------



Applicable Lending Office
for Alternative Base Rate Loans and
Eurodollar Rate Loans:

1301 Avenue of the Americas, 15th Floor
New York, New York 10019
Attn: Loan Administration Department

with a copy to:

1301 Travis, Suite 2100
Houston, Texas 77002
Attention: John Falbo

Address for Notices:

1301 Avenue of the Americas, 15th Floor
New York, New York 10019
Attn: Loan Administration Department

with a copy to:

1301 Travis, Suite 2100
Houston, TX 77002
Attention: John Falbo
Telecopy: 713-751-0307



                       (Signatures Continued on Next Page)


                                       79





                          SYNDICATION AGENT AND LENDER:

                           WELLS FARGO BANK, NATIONAL
                                   ASSOCIATION



                                             By:               
                                                -------------------------------
                                             Printed Name:     
                                                          ---------------------
                                             Title:            
                                                   ----------------------------



Applicable Lending Office
for Alternative Base Rate Loans and
Eurodollar Rate Loans:

1740 Broadway, 3rd Floor
Denver, CO  80274
Attention: Tanya Ivie


Address for Notices:

1000 Louisiana St., 3rd Floor
Houston, TX  77002
Attention: Carlos L. Quinteros



                                       80





                          SYNDICATION AGENT AND LENDER:

                                   BNP PARIBAS



                                             By:               
                                                -------------------------------
                                             Printed Name:     
                                                          ---------------------
                                             Title:            
                                                   ----------------------------



Applicable Lending Office
for Alternative Base Rate Loans and
Eurodollar Loans:

 
 
Attention:  


Address for Notices:

 
 
Attention:  
Telecopy:  



                                       81





                                             LENDER:

                                             COMERICA BANK



                                             By:               
                                                -------------------------------
                                             Printed Name:     
                                                          ---------------------
                                             Title:            
                                                   ----------------------------



Applicable Lending Office
for Alternative Base Rate Loans and
Eurodollar Rate Loans:

 
 
Attention:  


Address for Notices:

 
 
Attention:  
Telecopy:  


                                       82





                                             LENDER:

                                             AMEGY BANK NATIONAL ASSOCIATION



                                             By:               
                                                -------------------------------
                                             Printed Name:     
                                                          ---------------------
                                             Title:            
                                                   ----------------------------



Applicable Lending Office
for Alternative Base Rate Loans and
Eurodollar Rate Loans:

 
 
Attention:  


Address for Notices:

 
 
Attention:  
Telecopy:  


                                       83







   

                     FIRST AMENDMENT TO AMENDED AND RESTATED
                                CREDIT AGREEMENT

                                      AMONG

                              SWIFT ENERGY COMPANY,
                                   AS BORROWER

                            JPMORGAN CHASE BANK, N.A.
                             AS ADMINISTRATIVE AGENT

                 WELLS FARGO BANK (TEXAS), NATIONAL ASSOCIATION
                              AS SYNDICATION AGENT

                                   BNP PARIBAS
                              AS SYNDICATION AGENT

                                     CALYON
                             AS DOCUMENTATION AGENT

                                SOCIETE GENERALE
                             AS DOCUMENTATION AGENT

                                       AND

                          THE LENDERS SIGNATORY HERETO

                                       AND

                          J.P. MORGAN SECURITIES, INC.
                   AS SOLE LEAD ARRANGER AND SOLE BOOK RUNNER


                        Effective as of October 21, 2005
                       ----------------------------------

                 Revolving Line of Credit of up to $400,000,000
                        with Letter of Credit Subfacility
--------------------------------------------------------------------------------
                       

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                                TABLE OF CONTENTS
                                                                    PAGE
ARTICLE I    DEFINITIONS                                               1
         1.01         Terms Defined Above                              1
         1.02         Terms Defined in Agreement                       1
         1.03         References                                       1
         1.04         Articles and Sections                            2
         1.05         Number and Gender                                2
ARTICLE II AMENDMENTS                                                  2
         2.01         Amendment of Section 6.2(d)                      2
         2.02         Amendment of Section 6.7                         2
         2.03         Amendment of Exhibit VIII                        2
ARTICLE III CONDITIONS                                                 2
         3.01         Receipt of Documents                             3
         3.02         Accuracy of Representations and Warranties       3
         3.03         Matters Satisfactory to Lenders                  3
ARTICLE IV REPRESENTATIONS AND WARRANTIES                              3
ARTICLE V RATIFICATION                                                 3
ARTICLE VI MISCELLANEOUS                                               3
         6.01         Scope of Amendment                               3
         6.02         Agreement as Amended                             3
         6.03         Parties in Interest                              3
         6.04         Rights of Third Parties                          4
         6.05         ENTIRE AGREEMENT                                 4
         6.06         JURISDICTION AND VENUE                           4


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                                  EXHIBIT VIII
                          SUBSIDIARIES AND PARTNERSHIPS

                                   Percentage Ownership of
                                   Outstanding Common Stock    Place of Incorporation or
                                   or Partnership Interest     Jurisdiction of Formation
                                     (Distributive Share)            of Partnership               Address of Principal
                                                                                                    Place of Business
              Name
                                                                                     
Subsidiaries:
GASRS, Inc.                                 100.00%                        TX               16825 Northchase Drive, Suite 400
                                                                                            Houston, Texas 77060

Swenco-Western, Inc.                        100.00%                        TX               16825 Northchase Drive, Suite 400
                                                                                            Houston, Texas 77060

Swift Energy Marketing Co.                  100.00%                        TX               16825 Northchase Drive, Suite 400
                                                                                            Houston, Texas 77060

Swift Exploration Services Inc.             100.00%                        TX               16825 Northchase Drive, Suite 400
                                                                                            Houston, Texas 77060

Swift Energy International, Inc.            100.00%                        TX               16825 Northchase Drive, Suite 400
                                                                                            Houston, Texas 77060

Swift Energy Canada, Ltd.                   100.00%                      Canada             16825 Northchase Drive, Suite 400
                                                                                            Houston, Texas  77060


Swift Energy New Zealand Limited            100.00%                    New Zealand          16825 Northchase Drive, Suite 400
                                                                                            Houston, Texas 77060

Swift Energy New Zealand Holdings           100.00%                        TX               16825 Northchase, Suite 400

                                                                                            Houston, Texas 77060
Southern Petroleum (New                     100.00%                        TX               16825 Northchase Drive, Suite 400
Zealand) Exploration Limited                                                                Houston, Texas 77060
Partnerships:


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Swift  Energy  Drilling  Venture            20.00%                         TX               c/o Swift Energy Company
1996-1, Ltd.                                                                                16825 Northchase
                                                                                            Houston, Texas 77060

Swift  Energy  Drilling  Venture            20.00%                         TX               c/o Swift Energy Company
1997-1, Ltd.                                                                                16825 Northchase
                                                                                            Houston, Texas 77060

Swift  Energy  Drilling  Venture            20.00%                         TX               c/o Swift Energy Company
1998-1, Ltd.                                                                                16825 Northchase Drive, Suite 400
                                                                                            Houston, Texas 77060

Swift  Energy  Drilling  Venture            20.00%                         TX               c/o Swift Energy Company
1998-1, Ltd.                                                                                16825 Northchase Drive, Suite 400
                                                                                            Houston, Texas 77060

Swift  Energy  Development                  40.00%                         TX               c/o Swift Energy Company
Program 1996-A, Ltd.                                                                        16825 Northchase Drive, Suite 400
                                                                                            Houston, Texas 77060

Swift     Energy     Development            40.00%                         TX               c/o Swift Energy Company
Program 1998, Ltd.                                                                          16825 Northchase Drive, Suite 400
                                                                                            Houston, Texas 77060



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