351817--3/2/2006--SWIFT_ENERGY

related topics

{gas, price, oil}

{loss, insurance, financial}

{acquisition, growth, future}

{interest, director, officer}

{operation, international, foreign}

{tax, income, asset}

Estimates of proved reserves are uncertain, and revenues from production may vary significantly from expectations. If we cannot replace our reserves, our revenues and financial condition will suffer. Drilling wells is speculative and capital intensive. We may incur substantial losses and be subject to substantial liability claims as a result of our oil and natural gas operations. We are exposed to the risk of fluctuations in foreign currencies, primarily the New Zealand dollar. We have incurred a write-down of the carrying values of our properties in the past and could incur additional write-downs in the future. Substantial acquisitions or other transactions could require significant external capital and could change our risk and property profile. Reserves on acquired properties may not meet our expectations, and we may be unable to identify liabilities associated with acquired properties or obtain protection from sellers against associated liabilities. Prospects that we decide to drill may not yield oil or natural gas in commercially viable quantities. In many instances, title opinions on our oil and gas acreage are not be obtained if in our judgment it would be uneconomical or impractical to do so. Our use of oil and natural gas price hedging contracts involves credit risk and may limit future revenues from price increases and expose us to risk of financial loss. We may have difficulty competing for oil and gas properties or supplies. Our business depends on oil and natural gas transportation facilities, some of which are owned by others.

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351817--3/2/2006--SWIFT_ENERGY_CO