Swift Energy Company has entered into a Participation Agreement with Aurora Gas, LLC relating to a large onshore acreage position in the Cook Inlet Basin of Alaska. Swift Energy will earn an average working interest of 37.5% in approximately 54,500 gross acres in seven areas of mutual interest, which represents half of Aurora Gas, LLC’s working interest in the areas of mutual interest.

The exploratory commitment well, known as the Endeavour #1 in which Swift Energy has a 50% working interest, is scheduled to spud in the next few weeks. This initial exploration well will be operated by Aurora Gas and has multiple targets with crude oil and natural gas potential. At least six other exploration prospects have been targeted on the acreage. There are two main hydrocarbon plays identified in this area, the Hemlock-Tyonek oil play and the Beluga-Sterling natural gas play.

Bruce Vincent, President of Swift Energy remarked, "This new venture in the onshore Cook Inlet Basin in Alaska fits perfectly with Swift Energy’s stated strategy of looking for under-explored areas with large acreage positions and significant reserves potential in a prolific producing basin with multiple productive horizons. We look forward to working with Aurora Gas, an experienced operator in the Cook Inlet, establishing a successful partnership and expanding upon their successes to date. The Endeavour well and the six additional exploration prospects developed to date in this area provide Swift Energy the opportunity to add material potential oil and natural gas reserves while also providing additional diversity of risk and reward profiles within our sizeable drilling inventory. "

Swift Energy Company, founded in 1979 and headquartered in Houston, engages in developing, exploring, acquiring and operating oil and gas properties, with a focus on onshore and inland waters oil and natural gas reserves in Louisiana, Texas and most recently Alaska, as well as oil and natural gas reserves in New Zealand.