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PRESS RELEASE

Louisiana Department of Natural Resources Reports Shutdown of Drilling Rig

BATON ROUGE (May 26, 2010) - The state Department of Natural Resources (DNR) has announced that Swift Energy has suspended drilling operations on a rig it has contracted in the Lake Washington field in Plaquemines Parish due to concerns about a potential oil slick impacting the lake.

A light sheen had been sighted recently in the area where Swift is demobilizing the rig as the company develops a response plan in the event oil does make its way into the lake.

Oil and natural gas operators had previously voluntarily shut in four active wells in the state due to the oil spill.

Nippon Oil Exploration USA, Ltd. has shut in two well locations, one at Main Pass Block 76 and South Pass 31, both in Plaquemines Parish. Milagro Exploration had previously reported shutting in a production well and its associated saltwater injection well at Breton Sound Block 20 in St. Bernard parish.

The department's Office of Conservation has been contacting and tracking well operators in state waters to get the current status of their operations since the Commissioner of Conservation issued his Emergency Order on May 3, 2010.

Click here for information about the emergency order:
http://emergency.louisiana.gov/Releases/05112010-Order.html

Because of the possible risk of fire from the oil spill, operators have been put on notice in the Emergency Order to take all necessary actions to coordinate the shutdown of facilities and structures.

Commissioner Welsh says the order will continue for 120 days and his office is currently preparing to place daily reports of production and well operations on the website at www.dnr.la.gov.

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