Document:

<PAGE>

                                                                   Exhibit 10.23

                 SECOND AMENDMENT TO FIRST AMENDED AND RESTATED
                                CREDIT AGREEMENT

                                      AMONG

                              SWIFT ENERGY COMPANY
                           SWIFT ENERGY OPERATING, LLC
                                   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 December 28, 2005

                            ------------------------

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

                            -------------------------

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                            PAGE

<S>      <C>      <C>                                                                       <C>
  ARTICLE I       DEFINITIONS                                                                2
         1.01     Terms Defined Above                                                        2
         1.02     Terms Defined in Agreement                                                 2
         1.03     References                                                                 2
         1.04     Articles and Sections                                                      2
         1.05     Number and Gender                                                          2
  ARTICLE II AMENDMENTS                                                                      2
         2.01     Substitution of New Swift and Operating for Old Swift as Borrower          2
         2.02     Clarification of Certain Provisions                                        2
         2.03     Amendment of Exhibit I                                                     3
         2.04     Amendment of Exhibit VIII                                                  3
  ARTICLE III CONDITIONS                                                                     3
         3.01     Receipt of Documents                                                       3
         3.02     Accuracy of Representations and Warranties                                 4
         3.03     Matters Satisfactory to Lenders                                            4
  ARTICLE IV REPRESENTATIONS AND WARRANTIES                                                  4
  ARTICLE V RATIFICATION                                                                     4
  ARTICLE VI MISCELLANEOUS                                                                   4
         6.01     Scope of Amendment                                                         4
         6.02     Agreement as Amended                                                       4
         6.03     Parties in Interest                                                        4
         6.04     Rights of Third Parties                                                    4
         6.05     ENTIRE AGREEMENT                                                           5
         6.06     JURISDICTION AND VENUE                                                     5

Exhibit I         -        Form of Promissory Note
Exhibit VIII      -        Subsidiaries and Partnerships
</TABLE>

<PAGE>

         SECOND AMENDMENT TO FIRST AMENDED AND RESTATED CREDIT AGREEMENT

         This SECOND AMENDMENT TO FIRST AMENDED AND RESTATED CREDIT AGREEMENT
(this "Second Amendment") is made and entered into effective as of December 28,
2005, by and among SWIFT ENERGY COMPANY, a Texas corporation, and SWIFT ENERGY
OPERATING, LLC, a Texas limited liability company, (collectively 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, SWIFT ENERGY COMPANY, a Texas corporation ("Old Swift") was
the Borrower in the First Amended and Restated Credit Agreement dated June 29,
2004, as amended by First Amendment to First Amended and Restated Credit
Agreement dated October 21, 2005 (the "Agreement"), to which reference is made
for all purposes;

         WHEREAS, Old Swift merged with Swift Energy Operating, LLC
("Operating"), a Texas limited liability company, with Operating being the
surviving entity;

         WHEREAS Swift Energy Company, a Texas corporation ("New Swift") was
formed on December 15, 2005, and Swift Energy USA, Inc., a Delaware corporation
("USA") was formed on December 28, 2005;

         WHEREAS New Swift, Old Swift, and Operating entered into a Plan and
Agreement and Articles of Merger to Form Holding Company dated effective
December 28, 2005, wherein New Swift is the public parent holding company. USA
is a wholly owned subsidiary of New Swift and USA is the direct parent company
of Operating;

         WHEREAS, pursuant to a letter dated October 25, 2004, the Lenders
consented to Old Swift implementing the holding company structure and Old Swift
agreed to add New Swift and Old Swift's successor corporation, Operating, as
Borrowers to the Credit Agreement;

         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 Second 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," "Second 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 Second Amendment to Article or
Section numbers shall be to Articles and Sections of this Second Amendment,
unless expressly stated herein to the contrary. References in this Second
Amendment to "hereby," "herein," hereinafter," hereinabove," "hereinbelow,"
"hereof," and "hereunder" shall be to this Second Amendment in its entirety and
not only to the particular Article or Section in which such reference appears.

         1.04 Articles and Sections. This Second 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 Second 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 Substitution of New Swift and Operating for Old Swift as Borrower.
New Swift and Operating are hereby substituted for Old Swift as the Borrower in
the Agreement. New Swift and Operating agree to be bound by all of the terms and
provisions of the Agreement and shall be liable for all of the Obligations under
the Agreement.

         2.02 Clarification of Certain Provisions. Certain provisions of the
Agreement are hereby revised to clarify that (i) all references to financial
statements and financial terms relating to the Borrower are to New Swift on a
consolidated (or consolidating, as applicable) basis, (ii) the dividend covenant
in Section 6.5 will apply only to New Swift and not to Operating, (iii) Section
6.6 (Changes in Corporate Structure) will apply to both New Swift and Operating;
and

                                      -2-
<PAGE>

any compliance certificate and other certificates required to be signed by the
chief financial officer of Borrower shall mean the chief financial officer of
both New Swift and Operating.

         2.03 Amendment of Exhibit I. Exhibit I, i.e. the "Form of Promissory
Note" shall be as set forth on Exhibit I to this Second Amendment to First
Amended and Restated Credit Agreement.

         2.04 Amendment of Exhibit VIII. Exhibit VIII, i.e. "Subsidiaries and
Partnerships" shall be as

                                   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 Second Amendment, as requested by the
         Lender;

         (b) the Notes;

         (c) Ratification of and Amendment to Act of Mortgage and Security
         Agreement;

         (d) Ratification of and Amendment to Mortgage, Deed of Trust, Security
         Agreement, Financing Statement, Fixture Filing and Assignment of
         Production;

         (e)  Ratification of and Amendment to Security Agreement;

         (f) copies of the formation documents of the Borrower and all
         amendments thereto, accompanied by a certificate dated the Closing Date
         issued by the secretary or an assistant secretary or another authorized
         representative of the Borrower to the effect that each such copy is
         correct and complete;

         (g) a certificate of incumbency, including specimen signatures of all
         officers or other representatives of the Borrower who are authorized to
         execute Loan Documents on behalf of the Borrower, such certificate
         being executed by the secretary or an assistant secretary or another
         authorized representative of the Borrower;

         (h) copies of resolutions of the Borrower, adopted by the board of
         directors of the Borrower approving the Loan Documents to which the
         Borrower is a party and authorizing the transactions contemplated
         herein and therein, accompanied by a certificate dated the Closing Date
         issued by the secretary or assistant secretary or another authorized
         representative of the Borrower to the effect that such copies are true
         and correct copies of resolutions duly adopted and that such
         resolutions constitute all the

                                      -3-
<PAGE>

         resolutions adopted with respect to such transactions, have not been
         amended, modified, or rescinded in any respect, and are in full force
         and effect as of the date of such certificate; and

         (i) 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 Second
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.

                                    ARTICLE V
                                  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 Second Amendment.

                                   ARTICLE VI
                                  MISCELLANEOUS

         6.01 Scope of Amendment. The scope of this Second Amendment is
expressly limited to the matters addressed herein and this Second 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
Second 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 Second Amendment.

         6.03 Parties in Interest. All provisions of this Second 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

                                      -4-
<PAGE>

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 SECOND 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 SECOND 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 SECOND 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)

                                      -5-
<PAGE>

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

                                       BORROWER:

                                       SWIFT ENERGY COMPANY

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

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

                                       SWIFT ENERGY OPERATING, LLC

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

                                       By: s/ Adrian D. Shelley
                                           -------------------------------------
                                           Adrian D. Shelley
                                           Treasurer
Address for Notices:
Swift Energy Company
Swift Energy Operating, LLC
16825 Northchase Drive, Suite 400
Houston, Texas  77060
Attention:  Alton D. Heckaman, Jr.
Telecopy:  (281) 874-2701

                       (Signatures Continued on Next Page)

<PAGE>

                                       ADMINISTRATIVE AGENT AND LENDER:

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

                                       By: s/ Jo Linda Papadakis
                                           -------------------------------------
                                           Jo Linda Papadakis
                                           Vice President
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)

<PAGE>

                                       LENDER:

                                       BANK OF SCOTLAND

                                       By: s/ Karen Welch
                                           -------------------------------------
                                       Printed Name: Karen Welch
                                                     ---------------------------
                                       Title: Assistant Vice President
                                              ----------------------------------
Applicable Lending Office
for Alternative Base Rate Loans and
Eurodollar Rate Loans:

565 Fifth Avenue
New York, New York 10017
Attention: Shirley Vargas
Telecopy: 212-479-2807

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

                       (Signatures Continued on Next Page)

<PAGE>

                                       LENDER:

                                       NATEXIS BANQUES POPULAIRES

                                       By: s/ Donovan C. Broussard
                                           -------------------------------------
                                       Printed Name: Donovan C. Broussard
                                                     ---------------------------
                                       Title: Vice President & Group Manager
                                              ----------------------------------

                                       By: s/ Daniel Payer
                                           -------------------------------------
                                       Printed Name: Daniel Payer
                                                     ---------------------------
                                       Title: Vice President
                                              ----------------------------------

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

333 Clay Street, Suite 4340
Houston, Texas  77002
Attention: Donovan Broussard

Address for Notices:

_
_
_
Attention:_
Telecopy:_

                       (Signatures Continued on Next Page)

<PAGE>

                                       LENDER:

                                       THE BANK OF TOKYO-MITSUBISHI UFJ,
                                       LTD., NEW YORK BRANCH, successor by
                                       merger to UFJ Bank Limited (as of 1/1/06)

                                       By: s/ Takeshi Takahashi
                                           -------------------------------------
                                           Takeshi Takahashi
                                           Senior Vice President & Group Head

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

1251 Avenue of the Americas
New York, NY 10020-1104
Attention: Loan Operations

Address for Notices:
1251 Avenue of the Americas
New York, NY 10020-1104
Attention: Structured Finance Group
Telecopy: 212-782-6442

                       (Signatures Continued on Next Page)

<PAGE>

                                           DOCUMENTATION AGENT AND LENDER:

                                           SOCIETE GENERALE

                                           By: s/ Elena Robeiuc
                                               ---------------------------------
                                           Printed Name: Elena Robeiuc
                                                         -----------------------
                                           Title: Vice President
                                                  ------------------------------

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)

<PAGE>

                                           DOCUMENTATION AGENT AND LENDER:

                                           CALYON NEW YORK BRANCH

                                           By: s/ Michael Willis
                                               ---------------------------------
                                           Printed Name: Michael Willis
                                                         -----------------------
                                           Title: Vice President
                                                  ------------------------------

                                           By: s/ Bertrand Cond'hamme
                                               ---------------------------------
                                           Printed Name: Bertrand Cord'hamme
                                                         -----------------------
                                           Title: Director
                                                  ------------------------------

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: Tom Byargeon

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: Tom Byargeon
Telecopy: 713-751-0307

                       (Signatures Continued on Next Page)

<PAGE>

                                            SYNDICATION AGENT AND LENDER:

                                            WELLS FARGO BANK, NATIONAL
                                            ASSOCIATION

                                            By: s/ Chris Carter
                                                --------------------------------
                                            Printed Name: Chris Carter
                                                          ----------------------
                                            Title: Corporate Officer
                                                   -----------------------------

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: Chris Carter

                       (Signatures Continued on Next Page)

<PAGE>

                                 SYNDICATION AGENT AND LENDER:

                                 BNP PARIBAS

                                 By: s/ Betsy Jocher          s/ Polly Schott
                                     -------------------------------------------
                                 Printed Name: Betsy Jocher   Polly Schott
                                                                          ------
                                 Title: Vice President        Vice President
                                        ----------------------------------------

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

Attention:

Address for Notices:

Attention:
Telecopy:

                       (Signatures Continued on Next Page)

<PAGE>

                                        LENDER:

                                        COMERICA BANK

                                        By: s/ Huma Vadgama
                                            ------------------------------------
                                        Printed Name: Huma Vadgama
                                                      --------------------------
                                        Title: Vice President
                                               ---------------------------------

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

39200 Six Mile Road
Livonia, Michigan  48152
Attention: Jeffrey Zelenka
Telecopy: 734-632-2993

Address for Notices:

910 Louisiana, Suite 410
Houston, Texas  77002
Attention:  Huma Vadgama
Telecopy: 713-220-5651

                       (Signatures Continued on Next Page)

<PAGE>

                                         LENDER:

                                         AMEGY BANK NATIONAL ASSOCIATION

                                         By: s/ Kenneth R. Batson, III
                                             -----------------------------------
                                             Kenneth R. Batson, III
                                             Vice President, Energy Lending

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

AMEGY BANK NATIONAL ASSOCIATION
Attention: Dana Chargois

Address for Notices:

P.O. Box 27459
Houston, Texas  77227
Attention: Dana Chargois
Telecopy: 713-693-7467

                       (Signatures Continued on Next Page

<PAGE>

                                    EXHIBIT I

                                 PROMISSORY NOTE
$53,292,929.45                    Houston, Texas               December 28, 2005

         FOR VALUE RECEIVED and WITHOUT GRACE, the undersigned ("Maker")
promises to pay to the order of JPMORGAN CHASE BANK, N.A. ("Payee"), at the
banking quarters of JPMorgan Chase Bank, N.A., in Houston, Harris County, Texas,
the sum of FIFTY-THREE MILLION, TWO HUNDRED AND NINETY-TWO THOUSAND, NINE
HUNDRED AND TWENTY-NINE DOLLARS AND FORTY-FIVE CENTS ($53,292,929.45), or so
much thereof as may be advanced against this Note pursuant to the First Amended
and Restated Credit Agreement dated as of June 29, 2004, by and among Maker,
Bank One, NA, as a Lender and as the Administrative Agent, Wells Fargo Bank,
National Association, as a Lender and as Syndication Agent, CALYON, as a Lender
and as Documentation Agent and Societe Generale as a Lender and Documentation
Agent, and the other Lenders signatory thereto (as amended, restated or
supplemented from time to time, the "Credit Agreement"), together with interest
at the rates and calculated as provided in the Credit Agreement. The
indebtedness evidenced by this Note, both principal and interest, is payable as
provided in the Credit Agreement.

         Reference is hereby made to the Credit Agreement for matters governed
thereby, including, without limitation, certain events which will entitle the
Lenders to accelerate the maturity of all amounts due hereon. Capitalized terms
used but not defined in this Note shall have the meanings assigned to such terms
in the Credit Agreement.

         This Note is issued pursuant to, is a "Note" under, and is payable as
provided in, the Credit Agreement and is a substitution for and supersedes the
Note dated June 29, 2004 and all other prior Notes under this Agreement.

         THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE STATE OF
TEXAS (WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF
LAW); PROVIDED, HOWEVER, THAT CHAPTER 345 OF THE TEXAS FINANCE CODE (WHICH
REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRIPARTY
ACCOUNTS) SHALL NOT APPLY TO THIS NOTE.

                                         SWIFT ENERGY COMPANY

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

                                         By: Adrian D. Shelley
                                         Treasurer

                           [PAGE ONE OF TWO PAGE NOTE]

<PAGE>

                                         SWIFT ENERGY OPERATING, LLC

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

                                         By: Adrian D. Shelley

<PAGE>

                                         SWIFT ENERGY OPERATING, LLC

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

                                         By: Adrian D. Shelley
                                         Treasurer

                           [PAGE TWO OF TWO PAGE NOTE]

<PAGE>

                                    EXHIBIT I
                                 PROMISSORY NOTE
$53,292,929.45                    Houston, Texas               December 28, 2005

         FOR VALUE RECEIVED and WITHOUT GRACE, the undersigned ("Maker")
promises to pay to the order of SOCIETE GENERALE ("Payee"), at the banking
quarters of JPMorgan Chase Bank, N.A., in Houston, Harris County, Texas, the sum
of FIFTY-THREE MILLION, TWO HUNDRED AND NINETY-TWO THOUSAND, NINE HUNDRED AND
TWENTY-NINE DOLLARS AND FORTY-FIVE CENTS ($53,292,929.45), or so much thereof as
may be advanced against this Note pursuant to the First Amended and Restated
Credit Agreement dated as of June 29, 2004, by and among Maker, Bank One, NA, as
a Lender and as the Administrative Agent, Wells Fargo Bank, National
Association, as a Lender and as Syndication Agent, CALYON, as a Lender and as
Documentation Agent and Societe Generale as a Lender and Documentation Agent,
and the other Lenders signatory thereto (as amended, restated or supplemented
from time to time, the "Credit Agreement"), together with interest at the rates
and calculated as provided in the Credit Agreement. The indebtedness evidenced
by this Note, both principal and interest, is payable as provided in the Credit
Agreement.

         Reference is hereby made to the Credit Agreement for matters governed
thereby, including, without limitation, certain events which will entitle the
Lenders to accelerate the maturity of all amounts due hereon. Capitalized terms
used but not defined in this Note shall have the meanings assigned to such terms
in the Credit Agreement.

         This Note is issued pursuant to, is a "Note" under, and is payable as
provided in, the Credit Agreement and is a substitution for and supersedes the
Note dated June 29, 2004 and all other prior Notes under this Agreement.

         THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE STATE OF
TEXAS (WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF
LAW); PROVIDED, HOWEVER, THAT CHAPTER 345 OF THE TEXAS FINANCE CODE (WHICH
REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRIPARTY
ACCOUNTS) SHALL NOT APPLY TO THIS NOTE.

                                          SWIFT ENERGY COMPANY

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

                                          By: Adrian D. Shelley
                                              Treasurer

                           [PAGE ONE OF TWO PAGE NOTE]

<PAGE>

                                          SWIFT ENERGY OPERATING, LLC

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

                                          By: Adrian D. Shelley
                                          Treasurer

                           [PAGE TWO OF TWO PAGE NOTE]

<PAGE>

                                    EXHIBIT I
                                 PROMISSORY NOTE
$50,909,090.91                    Houston, Texas               December 28, 2005

         FOR VALUE RECEIVED and WITHOUT GRACE, the undersigned ("Maker")
promises to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION
("Payee"), at the banking quarters of JPMorgan Chase Bank, N.A., in Houston,
Harris County, Texas, the sum of FIFTY MILLION, NINE HUNDRED AND NINE THOUSAND,
NINETY DOLLARS AND NINETY-ONE CENTS ($50,909,090.91), or so much thereof as may
be advanced against this Note pursuant to the First Amended and Restated Credit
Agreement dated as of June 29, 2004, by and among Maker, Bank One, NA, as a
Lender and as the Administrative Agent, Wells Fargo Bank, National Association,
as a Lender and as Syndication Agent, CALYON, as a Lender and as Documentation
Agent and Societe Generale as a Lender and Documentation Agent, and the other
Lenders signatory thereto (as amended, restated or supplemented from time to
time, the "Credit Agreement"), together with interest at the rates and
calculated as provided in the Credit Agreement. The indebtedness evidenced by
this Note, both principal and interest, is payable as provided in the Credit
Agreement.

         Reference is hereby made to the Credit Agreement for matters governed
thereby, including, without limitation, certain events which will entitle the
Lenders to accelerate the maturity of all amounts due hereon. Capitalized terms
used but not defined in this Note shall have the meanings assigned to such terms
in the Credit Agreement.

         This Note is issued pursuant to, is a "Note" under, and is payable as
provided in, the Credit Agreement and is a substitution for and supersedes the
Note dated June 29, 2004 and all other prior Notes under this Agreement.

         THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE STATE OF
TEXAS (WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF
LAW); PROVIDED, HOWEVER, THAT CHAPTER 345 OF THE TEXAS FINANCE CODE (WHICH
REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRIPARTY
ACCOUNTS) SHALL NOT APPLY TO THIS NOTE.

                                          SWIFT ENERGY COMPANY

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

                                          By: Adrian D. Shelley
                                          Treasurer

                           [PAGE ONE OF TWO PAGE NOTE]

<PAGE>

                                          SWIFT ENERGY OPERATING, LLC

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

                                          By: Adrian D. Shelley
                                          Treasurer

                           [PAGE TWO OF TWO PAGE NOTE]
<PAGE>

                                    EXHIBIT I
                                 PROMISSORY NOTE
$48,000,000.00                    Houston, Texas               December 28, 2005

         FOR VALUE RECEIVED and WITHOUT GRACE, the undersigned ("Maker")
promises to pay to the order of BANK OF SCOTLAND ("Payee"), at the banking
quarters of JPMorgan Chase Bank, N.A., in Houston, Harris County, Texas, the sum
of FORTY-EIGHT MILLION DOLLARS ($48,000,000.00), or so much thereof as may be
advanced against this Note pursuant to the First Amended and Restated Credit
Agreement dated as of June 29, 2004, by and among Maker, Bank One, NA, as a
Lender and as the Administrative Agent, Wells Fargo Bank, National Association,
as a Lender and as Syndication Agent, CALYON, as a Lender and as Documentation
Agent and Societe Generale as a Lender and Documentation Agent, and the other
Lenders signatory thereto (as amended, restated or supplemented from time to
time, the "Credit Agreement"), together with interest at the rates and
calculated as provided in the Credit Agreement. The indebtedness evidenced by
this Note, both principal and interest, is payable as provided in the Credit
Agreement.

         Reference is hereby made to the Credit Agreement for matters governed
thereby, including, without limitation, certain events which will entitle the
Lenders to accelerate the maturity of all amounts due hereon. Capitalized terms
used but not defined in this Note shall have the meanings assigned to such terms
in the Credit Agreement.

         This Note is issued pursuant to, is a "Note" under, and is payable as
provided in, the Credit Agreement and is a substitution for and supersedes the
Note dated June 29, 2004 and all other prior Notes under this Agreement.

         THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE STATE OF
TEXAS (WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF
LAW); PROVIDED, HOWEVER, THAT CHAPTER 345 OF THE TEXAS FINANCE CODE (WHICH
REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRIPARTY
ACCOUNTS) SHALL NOT APPLY TO THIS NOTE.

                                            SWIFT ENERGY COMPANY

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

                                            By: Adrian D. Shelley
                                            Treasurer

                           [PAGE ONE OF TWO PAGE NOTE]

<PAGE>

                                            SWIFT ENERGY OPERATING, LLC

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

                                            By: Adrian D. Shelley
                                            Treasurer

                           [PAGE TWO OF TWO PAGE NOTE]

<PAGE>

                                    EXHIBIT I
                                 PROMISSORY NOTE
$20,000,000.00                    Houston, Texas               December 28, 2005

         FOR VALUE RECEIVED and WITHOUT GRACE, the undersigned ("Maker")
promises to pay to the order of NATEXIS BANQUES POPULAIRES ("Payee"), at the
banking quarters of JPMorgan Chase Bank, N.A., in Houston, Harris County, Texas,
the sum of TWENTY MILLION DOLLARS ($20,000,000.00), or so much thereof as may be
advanced against this Note pursuant to the First Amended and Restated Credit
Agreement dated as of June 29, 2004, by and among Maker, Bank One, NA, as a
Lender and as the Administrative Agent, Wells Fargo Bank, National Association,
as a Lender and as Syndication Agent, CALYON, as a Lender and as Documentation
Agent and Societe Generale as a Lender and Documentation Agent, and the other
Lenders signatory thereto (as amended, restated or supplemented from time to
time, the "Credit Agreement"), together with interest at the rates and
calculated as provided in the Credit Agreement. The indebtedness evidenced by
this Note, both principal and interest, is payable as provided in the Credit
Agreement.

         Reference is hereby made to the Credit Agreement for matters governed
thereby, including, without limitation, certain events which will entitle the
Lenders to accelerate the maturity of all amounts due hereon. Capitalized terms
used but not defined in this Note shall have the meanings assigned to such terms
in the Credit Agreement.

         This Note is issued pursuant to, is a "Note" under, and is payable as
provided in, the Credit Agreement and is a substitution for and supersedes the
Note dated June 29, 2004 and all other prior Notes under this Agreement.

         THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE STATE OF
TEXAS (WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF
LAW); PROVIDED, HOWEVER, THAT CHAPTER 345 OF THE TEXAS FINANCE CODE (WHICH
REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRIPARTY
ACCOUNTS) SHALL NOT APPLY TO THIS NOTE.

                                                SWIFT ENERGY COMPANY

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

                                                By: Adrian D. Shelley
                                                Treasurer

                           [PAGE ONE OF TWO PAGE NOTE]

<PAGE>

                                                SWIFT ENERGY OPERATING, LLC

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

                                                By: Adrian D. Shelley
                                                Treasurer

                           [PAGE TWO OF TWO PAGE NOTE]

<PAGE>

                                    EXHIBIT I
                                 PROMISSORY NOTE
$26,666,666.18                    Houston, Texas               December 28, 2005

         FOR VALUE RECEIVED and WITHOUT GRACE, the undersigned ("Maker")
promises to pay to the order of THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
("Payee"), at the banking quarters of JPMorgan Chase Bank, N.A., in Houston,
Harris County, Texas, the sum of TWENTY-SIX MILLION, SIX HUNDRED AND SIXTY-SIX
THOUSAND, SIX HUNDRED AND SIXTY-SIX DOLLARS AND EIGHTEEN CENTS ($26,666,666.18),
or so much thereof as may be advanced against this Note pursuant to the First
Amended and Restated Credit Agreement dated as of June 29, 2004, by and among
Maker, Bank One, NA, as a Lender and as the Administrative Agent, Wells Fargo
Bank, National Association, as a Lender and as Syndication Agent, CALYON, as a
Lender and as Documentation Agent and Societe Generale as a Lender and
Documentation Agent, and the other Lenders signatory thereto (as amended,
restated or supplemented from time to time, the "Credit Agreement"), together
with interest at the rates and calculated as provided in the Credit Agreement.
The indebtedness evidenced by this Note, both principal and interest, is payable
as provided in the Credit Agreement.

         Reference is hereby made to the Credit Agreement for matters governed
thereby, including, without limitation, certain events which will entitle the
Lenders to accelerate the maturity of all amounts due hereon. Capitalized terms
used but not defined in this Note shall have the meanings assigned to such terms
in the Credit Agreement.

         This Note is issued pursuant to, is a "Note" under, and is payable as
provided in, the Credit Agreement and is a substitution for and supersedes the
Note dated June 29, 2004 and all other prior Notes under this Agreement.

         THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE STATE OF
TEXAS (WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF
LAW); PROVIDED, HOWEVER, THAT CHAPTER 345 OF THE TEXAS FINANCE CODE (WHICH
REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRIPARTY
ACCOUNTS) SHALL NOT APPLY TO THIS NOTE.

                                           SWIFT ENERGY COMPANY

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

                                           By: Adrian D. Shelley
                                           Treasurer

                           [PAGE ONE OF TWO PAGE NOTE]

<PAGE>

                                           SWIFT ENERGY OPERATING, LLC

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

                                           By: Adrian D. Shelley
                                           Treasurer

                           [PAGE TWO OF TWO PAGE NOTE]

<PAGE>

                                    EXHIBIT I
                                 PROMISSORY NOTE
$43,636,363.54                    Houston, Texas               December 28, 2005

         FOR VALUE RECEIVED and WITHOUT GRACE, the undersigned ("Maker")
promises to pay to the order of BNP PARIBAS ("Payee"), at the banking quarters
of JPMorgan Chase Bank, N.A., in Houston, Harris County, Texas, the sum of
FORTY-THREE MILLION, SIX HUNDRED AND THIRTY-SIX THOUSAND, THREE HUNDRED AND
SIXTY-THREE DOLLARS AND FIFTY-FOUR CENTS ($43,636,363.54), or so much thereof as
may be advanced against this Note pursuant to the First Amended and Restated
Credit Agreement dated as of June 29, 2004, by and among Maker, Bank One, NA, as
a Lender and as the Administrative Agent, Wells Fargo Bank, National
Association, as a Lender and as Syndication Agent, CALYON, as a Lender and as
Documentation Agent and Societe Generale as a Lender and Documentation Agent,
and the other Lenders signatory thereto (as amended, restated or supplemented
from time to time, the "Credit Agreement"), together with interest at the rates
and calculated as provided in the Credit Agreement. The indebtedness evidenced
by this Note, both principal and interest, is payable as provided in the Credit
Agreement.

         Reference is hereby made to the Credit Agreement for matters governed
thereby, including, without limitation, certain events which will entitle the
Lenders to accelerate the maturity of all amounts due hereon. Capitalized terms
used but not defined in this Note shall have the meanings assigned to such terms
in the Credit Agreement.

         This Note is issued pursuant to, is a "Note" under, and is payable as
provided in, the Credit Agreement and is a substitution for and supersedes the
Note dated June 29, 2004 and all other prior Notes under this Agreement.

         THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE STATE OF
TEXAS (WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF
LAW); PROVIDED, HOWEVER, THAT CHAPTER 345 OF THE TEXAS FINANCE CODE (WHICH
REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRIPARTY
ACCOUNTS) SHALL NOT APPLY TO THIS NOTE.

                                           SWIFT ENERGY COMPANY

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

                                           By: Adrian D. Shelley
                                           Treasurer

                           [PAGE ONE OF TWO PAGE NOTE]

<PAGE>

                                           SWIFT ENERGY OPERATING, LLC

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

                                           By: Adrian D. Shelley
                                           Treasurer

                           [PAGE TWO OF TWO PAGE NOTE]

<PAGE>

                                    EXHIBIT I
                                 PROMISSORY NOTE
$25,454,545.45                    Houston, Texas               December 28, 2005

         FOR VALUE RECEIVED and WITHOUT GRACE, the undersigned ("Maker")
promises to pay to the order of COMERICA BANK ("Payee"), at the banking quarters
of JPMorgan Chase Bank, N.A., in Houston, Harris County, Texas, the sum of
TWENTY FIVE MILLION, FOUR HUNDRED FIFTY-FOUR THOUSAND, FIVE HUNDRED FORTY-FIVE
DOLLARS AND FORTY-FIVE CENTS ($25,454,545.45), or so much thereof as may be
advanced against this Note pursuant to the First Amended and Restated Credit
Agreement dated as of June 29, 2004, by and among Maker, Bank One, NA, as a
Lender and as the Administrative Agent, Wells Fargo Bank, National Association,
as a Lender and as Syndication Agent, CALYON, as a Lender and as Documentation
Agent and Societe Generale as a Lender and Documentation Agent, and the other
Lenders signatory thereto (as amended, restated or supplemented from time to
time, the "Credit Agreement"), together with interest at the rates and
calculated as provided in the Credit Agreement. The indebtedness evidenced by
this Note, both principal and interest, is payable as provided in the Credit
Agreement.

         Reference is hereby made to the Credit Agreement for matters governed
thereby, including, without limitation, certain events which will entitle the
Lenders to accelerate the maturity of all amounts due hereon. Capitalized terms
used but not defined in this Note shall have the meanings assigned to such terms
in the Credit Agreement.

         This Note is issued pursuant to, is a "Note" under, and is payable as
provided in, the Credit Agreement and is a substitution for and supersedes the
Note dated September 28, 2004 and all other prior Notes under this Agreement.

         THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE STATE OF
TEXAS (WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF
LAW); PROVIDED, HOWEVER, THAT CHAPTER 345 OF THE TEXAS FINANCE CODE (WHICH
REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRIPARTY
ACCOUNTS) SHALL NOT APPLY TO THIS NOTE.

                                            SWIFT ENERGY COMPANY

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

                                            By: Adrian D. Shelley
                                            Treasurer

                           [PAGE ONE OF TWO PAGE NOTE]

<PAGE>

                                            SWIFT ENERGY OPERATING, LLC

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

                                            By: Adrian D. Shelley
                                            Treasurer

                           [PAGE TWO OF TWO PAGE NOTE]

<PAGE>

                                    EXHIBIT I
                                 PROMISSORY NOTE
$25,454,545.45                    Houston, Texas               December 28, 2005

         FOR VALUE RECEIVED and WITHOUT GRACE, the undersigned ("Maker")
promises to pay to the order of AMEGY BANK NATIONAL ASSOCIATION ("Payee"), at
the banking quarters of JPMorgan Chase Bank, N.A., in Houston, Harris County,
Texas, the sum of TWENTY-FIVE MILLION, FOUR HUNDRED AND FIFTY-FOUR THOUSAND,
FIVE HUNDRED AND FORTY-FIVE DOLLARS AND FORTY-FIVE CENTS ($25,454,545.45), or so
much thereof as may be advanced against this Note pursuant to the First Amended
and Restated Credit Agreement dated as of June 29, 2004, by and among Maker,
Bank One, NA, as a Lender and as the Administrative Agent, Wells Fargo Bank,
National Association, as a Lender and as Syndication Agent, CALYON, as a Lender
and as Documentation Agent and Societe Generale as a Lender and Documentation
Agent, and the other Lenders signatory thereto (as amended, restated or
supplemented from time to time, the "Credit Agreement"), together with interest
at the rates and calculated as provided in the Credit Agreement. The
indebtedness evidenced by this Note, both principal and interest, is payable as
provided in the Credit Agreement.

         Reference is hereby made to the Credit Agreement for matters governed
thereby, including, without limitation, certain events which will entitle the
Lenders to accelerate the maturity of all amounts due hereon. Capitalized terms
used but not defined in this Note shall have the meanings assigned to such terms
in the Credit Agreement.

         This Note is issued pursuant to, is a "Note" under, and is payable as
provided in, the Credit Agreement and is a substitution for and supersedes the
Note from Southwest Bank of Texas, N.A. dated June 29, 2004 and all other prior
Notes under this Agreement.

         THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE STATE OF
TEXAS (WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF
LAW); PROVIDED, HOWEVER, THAT CHAPTER 345 OF THE TEXAS FINANCE CODE (WHICH
REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRIPARTY
ACCOUNTS) SHALL NOT APPLY TO THIS NOTE.

                                            SWIFT ENERGY COMPANY

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

                                            By: Adrian D. Shelley
                                            Treasurer

                           [PAGE ONE OF TWO PAGE NOTE]

<PAGE>

                                            SWIFT ENERGY OPERATING, LLC

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

                                            By: Adrian D. Shelley
                                            Treasurer

                           [PAGE TWO OF TWO PAGE NOTE]

<PAGE>

                                  EXHIBIT VIII

                          SUBSIDIARIES AND PARTNERSHIPS

<TABLE>
<CAPTION>
                                       PERCENTAGE OWNERSHIP OF          PLACE OF
                                      OUTSTANDING COMMON STOCK,      INCORPORATION OR
                                       MEMBERSHIP INTEREST OR        JURISDICTION OF
                                        PARTNERSHIP INTEREST           FORMATION OF                   ADDRESS OF PRINCIPAL
                NAME                    (DISTRIBUTIVE SHARE)           PARTNERSHIP                      PLACE OF BUSINESS
                ----                    --------------------           -----------                      -----------------
SUBSIDIARIES:
------------
<S>                                    <C>                           <C>                          <C>
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 Company                 100.00%                      TX                    16825 Northchase Drive, Suite 400
                                                                                                  Houston, Texas 77060

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

Swift Energy International, Inc.               100.00%                      DE                    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 Group, Inc.                       100.00%                      DE                    103 Foulk Road, Suite 202
                                                                                                  Wilmington, Delaware 19803

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 Drive,
Limited                                                                                           Suite 400
                                                                                                  Houston, Texas 77060

Swift Energy Operating, LLC                    100.00%                      TX                    16825 Northchase Drive,
                                                                                                  Suite 400
                                                                                                  Houston, Texas 77060
Swift Energy USA, Inc.                         100.00%                      DE                    103 Foulk Road, Suite 202
                                                                                                  Wilmington, Delaware 19803

Southern Petroleum (New Zealand)               100.00%                      TX                    16825 Northchase
Exploration Limited                                                                               Suite 400
                                                                                                  Houston, Texas 77060
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                       PERCENTAGE OWNERSHIP OF          PLACE OF
                                      OUTSTANDING COMMON STOCK,      INCORPORATION OR
                                       MEMBERSHIP INTEREST OR        JURISDICTION OF
                                        PARTNERSHIP INTEREST           FORMATION OF                   ADDRESS OF PRINCIPAL
                NAME                    (DISTRIBUTIVE SHARE)           PARTNERSHIP                      PLACE OF BUSINESS
                ----                    --------------------           -----------                      -----------------

PARTNERSHIPS:
------------
<S>                                    <C>                           <C>                          <C>
Swift Energy Drilling Venture                  20.00%                       TX                    c/o Swift Energy Company
1996-1, Ltd.                                                                                      16825 Northchase
(Dissolved 12/31/2005)                                                                            Houston, Texas 77060

Swift Energy Drilling Venture                  20.00%                       TX                    c/o Swift Energy Company
1997-1, Ltd.                                                                                      16825 Northchase
(Dissolved 12/31/2005)                                                                            Houston, Texas 77060

Swift Energy Drilling Venture                  20.00%                       TX                    c/o Swift Energy Company
1997-2, Ltd.                                                                                      16825 Northchase Drive, Suite 400
(Dissolved 12/31/2005)                                                                            Houston, Texas 77060

Swift Energy Drilling Venture                  20.00%                       TX                    c/o Swift Energy Company
1998-1, Ltd.                                                                                      16825 Northchase Drive, Suite 400
(Dissolved 12/31/2005)                                                                            Houston, Texas 77060

Swift Energy Development Program               40.00%                       TX                    c/o Swift Energy Company
1996-A, Ltd.                                                                                      16825 Northchase Drive, Suite 400
                                                                                                  Houston, Texas 77060
Swift Energy Development Program               40.00%                       TX                    c/o Swift Energy Company
1998, Ltd.                                                                                        16825 Northchase Drive, Suite 400
                                                                                                  Houston, Texas 77060
</TABLE>exv10w7

 

Exhibit 10.7

SEVERANCE AGREEMENT

     THIS SEVERANCE AND RELEASE AGREEMENT (“Agreement”) is made and entered into by and between
GROUP 1 AUTOMOTIVE, INC. (“Employer”) and ROBERT RAY (“Employee”).

     WHEREAS, Employee is separating from his position with Employer;

     WHEREAS, Employer wishes to provide Employee with certain benefits in consideration of
Employee’s separation and the promises and covenants of Employee as contained herein, including the
Employee’s agreement to release all claims against Employer;

     NOW THEREFORE, in consideration of and exchange for the promises, covenants, and releases
contained herein, the parties mutually agree as follows:

     1. Separation Date. Employee’s separation from all positions he holds with Employer
shall be effective on the 31st day of December, 2005 (unless an earlier date is mutually
agreed upon by both parties), at which time all entitlement to compensation and benefits from
Employer shall cease except to the extent provided by this Agreement (“Separation Date”) or under
any employee welfare or benefit plan under which Employee has vested rights to benefits, subject to
the plan documents for such plans.

     2. Effective Date. This Agreement shall be effective on the date it is executed by
Employee (“Effective Date”).

     3. Severance Benefits. In further consideration for this Agreement, Employee shall be
entitled to the following benefits, which exceed the benefits to which Employee would be entitled
absent his agreement to the covenants, conditions and terms set forth in this Agreement.

          A. Base Salary. If Employee remains employed through the Separation Date, Employer
shall pay Employee severance pay in the form of six (6) months of base salary in the amount of
$182,500 in the form of a lump sum payment on the Separation Date, less all customary and required
withholdings.

          B. Bonus Payment. If Employee remains employed through the Separation Date, Employer
shall pay Employee a bonus for 2005 in the amount of $313,900 on the Separation Date, less all
customary and required withholdings.

          C. Accrued Vacation. Employer shall pay to Employee all accrued but unused vacation
as of the Separation Date.

          D. Outplacement Assistance. Employer shall provide Employee with outplacement
assistance at the Employer’s expense, through an agency of Employer’s choosing but acceptable to
Employee, for a duration that is mutually agreed by Employer and Employee.

          E. Equipment. Employee shall be entitled to keep his cell phone, blackberry, laptop
computer, home printer and all home networking equipment following his separation, however,
Employee shall be responsible for all user charges incurred after the Separation Date.

	 	 	 	 	 
	Employee Initials___

	 	  
	 	 
	Employer Initials___
	 	 	 	 

1

 

          F. Vehicle. Employee shall be entitled to use the demonstrator vehicle currently
provided to him by Employer through February 28, 2006. During such period, insurance coverage
currently provided by the Employer in connection with use of demonstrator vehicles by executives of
the Employer shall continue to apply to the demonstrator vehicle used by Employee. Employee is
solely responsible for fuel, repairs and maintenance of the demonstrator vehicle. On or before
February 28, 2006, Employee shall return such demonstrator vehicle to Employer in a condition
acceptable to Employer. Employee agrees to indemnify and hold Employer harmless from any and all
loss or liability arising, directly or indirectly, from Employee’s use of the demonstrator vehicle
that is not covered by the insurance coverage referenced above.

          G. Condition Precedent to Severance Benefits. As a condition of receiving the
severance benefits described above, Employee shall continue to conduct all “normal” CFO duties
during his employment with Employer, including with respect to the following:

	 	i.	 	3Q financial closing and related releases /
filings (e.g., News Release, Form 10-Q, etc.);
	 
	 	ii.	 	3Q Road Show and related investor meetings;
	 
	 	iii.	 	 Bank syndication, documentation, closing;
	 
	 	iv.	 	 Board Meeting preparation / presentation; and
	 
	 	v.	 	2006 Budget.

     4. Release by Employee. In exchange for the consideration provided by Employer,
Employee agrees for Employee, Employee’s heirs, agents, executors, administrators, successors and
assigns to forever release and discharge Employer and its subsidiaries, predecessor companies,
successor companies, related companies, parents, successors and assigns, owners, officers,
directors, insurers, attorneys, agents, employees and former employees from any and all claims,
debts, promises, agreements, demands, causes of action, attorneys’ fees, losses and expenses of
every nature whatsoever, known or unknown, suspected or unsuspected, filed or unfiled, arising
prior to the Effective Date of this Agreement, or arising out of or in connection with Employee’s
employment by or offer of employment by the Employer or any affiliate of the Employer. This total
release includes, but is not limited to, any and all claims arising directly or indirectly from
Employee’s employment with the Employer and the termination of that employment; claims or demands
related to salary, bonuses, commissions, vacation pay, fringe benefits and expense reimbursements
pursuant to any federal, state or local law or cause of action, including, but not limited to,
breach of contract, breach of the implied covenant of good faith and fair dealing, infliction of
emotional harm, wrongful discharge, negligence, violation of public policy, defamation and
impairment of economic opportunity; violation of the Texas Employment Discrimination or Harassment
Laws, as amended, the Texas Constitution; and any claims for violation of Title VII of the Civil
Rights Act of 1964, as amended, the Fair Labor Standards Act, the Family Medical Leave Act, and the
Americans With Disabilities Act of 1990. Notwithstanding the foregoing, or any other provision of
this Agreement, Employee retains, and does not release or waive, his rights to indemnification, and
coverage under one or more Executive and Officer’s Liability, and other, insurance polices, with
respect to claims that may be brought against him arising out or related to his employment with
Employer, or any affiliate of Employer. Nor does Employee release or waive any claims arising out
of or related to any breach by Employer of the terms of this Agreement.

     5. Release by Employer. In exchange for the consideration provided by Employee,
Employer agrees for it, and its subsidiaries, predecessor companies, successor companies,

	 	 	 	 	 
	Employee Initials___

	 	  
	 	 
	Employer Initials___
	 	 	 	 

2

 

related companies, parents, successors assigns, and owners to forever release and discharge
Employee from any and all claims, debts, promises, agreements, demands, causes of action,
attorneys’ fees, losses and expenses of every nature whatsoever, known or unknown, suspected or
unsuspected, filed or unfiled, arising prior to the Effective Date of this Agreement, or arising
out of or in connection with Employee’s employment by or with Employer or any affiliate of the
Employer.

     6. Newly Discovered Facts. Employee and Employer hereby acknowledge that they may
hereafter discover facts different from or in addition to those that they now know or believe to be
true, and they expressly agree to assume the risk of the possible discovery of additional facts,
and agree that this Agreement will be and remain effective regardless of such additional or
different facts. Employer and Employee expressly agree that this Agreement shall be given full
force and effect according to each and all of its express terms and provisions, including those
relating to unknown or unsuspected claims, demands, causes of action, governmental, regulatory or
enforcement actions, charges, obligations, damages, liabilities, and attorneys’ fees and costs, if
any, as well as those relating to any other claims, demands, causes of action, obligations,
damages, liabilities, charges, and attorneys’ fees and costs specified herein.

     7. Confidentiality. Employer and Employee agree that they will, to the extent
possible, keep the terms, amount and fact of this Agreement completely confidential, and that they
will not hereafter disclose any information concerning this Agreement to anyone, including the
amount of consideration paid hereunder, the facts, allegations, and/or circumstances regarding
Employee’s employment and/or Employee’s separation of employment with Employer; provided, however,
that Employer and Employee may make such disclosures as they are required to make by law or are
necessary to enforce any term of this Agreement, and may make such additional disclosures to
immediate family members, professional representatives (e.g., attorneys, accountants, auditors, tax
preparers), and prospective employers but only with respect to the circumstances regarding
Employee’s separation from employment; provided, however, that such persons be informed of and
agree to be bound by this confidentiality clause. Employee further acknowledges and agrees that
he was exposed to and/or provided with confidential information relating to Employer and Employer’s
finances, business operations, customers, and employees. Employee hereby warrants and agrees that
he will hold the Employer’s confidential information in the strictest confidence and will not
disclose, reveal, publish, distribute, use, misuse or communicate in any format any confidential,
sensitive, or proprietary information regarding Employer or Employer’s business that he acquired
and/or learned during his employment with Employer, unless required by law.

     8. Covenant to Cooperate. Employee hereby acknowledges that in partial consideration
for the benefits received pursuant to this Agreement, he may be requested by the Employer to
cooperate with the Employer in the defense or prosecution of one or more existing or future court
actions, governmental investigations, arbitrations, mediations or other legal or equitable
proceedings which involve the Employer or any of its employees, officers or directors, and he
agrees to do so. This cooperation may include, but shall not be limited to, the need for or
availability for testimony in deposition, affidavit, trial, mediation or arbitration, as well as
preparation for that testimony. Employee acknowledges that he shall make himself available at the
Employer’s reasonable request for any meetings or conferences the Employer deems necessary in
preparation for the defense or prosecution of any such legal proceedings. Employer shall pay all
reasonable expenses that may be incurred by Employee (e.g., lodging and air fare) in providing such
cooperation.

	 	 	 	 	 
	Employee Initials___

	 	  
	 	 
	Employer Initials___
	 	 	 	 

3

 

     9. Employer Property. With the exception of the equipment described in Section 3 (E),
and the demonstrator vehicle described above in Section 3(F), Employee hereby represents and
warrants that on or before the Separation Date, he will return to Employer all of Employer’s
property and documents in his possession including, but not limited to, Employer’s files, notes,
records, computer recorded information, tangible property, credit cards, entry cards, keys,
identification badges, and Employer issued cell phones, pagers and other electronic devices used in
the course and scope of Employee’s employment with Employer.

     10. Entire Agreement. This Agreement embodies the entire agreement of all the parties
hereto who have executed it and supersedes any and all other agreements, understandings,
negotiations, or discussions, either oral or in writing, express or implied, between the parties to
this Agreement. The parties to this Agreement each acknowledge that no representations,
inducements, promises, agreements or warranties, oral or otherwise, have been made by them, or
anyone acting on their behalf, which are not embodied in this Agreement; that they have not
executed this Agreement in reliance on any representation, inducement, promise, agreements,
warranty, fact or circumstances, not expressly set forth in this Agreement; and that no
representation, inducement, promise, agreement or warranty not contained in this Agreement
including, but not limited to, any purported settlements, modifications, waivers or terminations of
this Agreement, shall be valid or binding, unless executed in writing by all of the parties to this
Agreement. This Agreement may be amended, and any provision herein waived, but only in writing,
signed by the party against whom such an amendment or waiver is sought to be enforced.

     11. Binding Nature. This Agreement, and all the terms and provisions contained
herein, shall bind the heirs, personal representatives, agents acting on behalf of Employee,
successors and assigns of each party, and inure to the benefit of each party, its agents,
directors, officers, employees, servants, successors, and assigns. The undersigned, on behalf of
the Employer, represents that he has all requisite authority and power to enter into this
Agreement.

     12. Construction. This Agreement shall not be construed in favor of one party or
against the other.

     13. Partial Invalidity. Should any portion, word, clause, phrase, sentence or
paragraph of this Agreement be declared void or unenforceable, such portion shall be considered
independent and severable from the remainder, the validity of which shall remain unaffected.

     14. Compliance with Terms. The failure to insist upon compliance with any term,
covenant or condition contained in this Agreement shall not be deemed a waiver of that term,
covenant or condition, nor shall any waiver or relinquishment of any right or power contained in
this Agreement at any one time or more times be deemed a waiver or relinquishment of any right or
power at any other time or times.

     15. Enforcement Costs. Employer and Employee agree that in the event that either
breaches any provision of this Agreement, the breaching party shall pay all reasonable costs and
attorney’s fees incurred by the other in connection with enforcement of this Agreement.

     16. Governing Law and Jurisdiction. This Agreement shall be interpreted under the law
of the State of Texas, both as to interpretation and performance.

	 	 	 	 	 
	Employee Initials___

	 	  
	 	 
	Employer Initials___
	 	 	 	 

4

 

     17. Section Headings. The section and paragraph headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

     18. Counterparts. This Agreement may be executed in two counterparts, each of which
shall be deemed an original, all of which together shall constitute one and the same instrument.

     19. No Admissions. It is understood and agreed by the parties that this Agreement
represents a compromise and settlement for various matters and that the promises and consideration
in this Agreement shall not be construed to be an admission of any liability or obligation by
either party to the other party or any other person.

     20. Voluntary and Knowing. This Agreement is executed voluntarily and without any
duress, undue influence or coercion on the part or behalf of the parties hereto. Employee also
acknowledges being informed that he has the option of consulting with an attorney prior to the
execution of this Agreement. By signing below, Employee also acknowledges that he has read and
fully understands and agrees to the terms of this Agreement.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the respective dates set forth
below.

	 	 	 	 	 	 	 
	Dated:         12/5/05
	 	GROUP 1 AUTOMOTIVE, INC.
	 

	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Earl J. Hesterberg 	 	 
	 

	 	 	 	 

Earl J. Hesterberg

President and Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 
	Dated:         12/5/05

	 	 	 	ROBERT RAY	 
	 
	 	 	 	 	 	 
	 
	 	 	 	/s/ Robert Ray 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(Signature)	 	 

	 	 	 	 	 
	Employee Initials___

	 	  
	 	 
	Employer Initials___
	 	 	 	 

5

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