Swift Energy Company
16825 Northchase Dr., Suite 400
Houston, Texas 77060
June 17, 1998
To: LIMITED PARTNERS OF SWIFT ENERGY INCOME PARTNERS 1987-B, LTD. (the
"Partnership")
On February 6, 1997, Swift Energy Company, as Managing General Partner
of the above-referenced Partnership, notified all limited partners of the
Partnership that a list of limited partners was provided to an affiliate of
Madison Partnership Liquidity Investors 60 LLC, ("Madison") pursuant to
Madison's request under the terms of the limited partnership agreement in order
to make an offer to purchase up to 4.9% of limited partners' units. Although the
list was provided under the limited partnership agreement, Swift Energy
conducted negotiations with Madison to assure that such offer would disclose
certain basic information to the limited partners.
It has come to our attention that within the past week you may have
received an offer from Madison to purchase your Partnership units. Madison is an
investment company that is in the business of buying limited partnership units
at a discount and is not associated with the Partnership or the Managing General
Partner. We understand that the offer by Madison is for $5.66 per unit less a
$35.00 transfer fee. As discussed below, the Partnership's oil and gas assets
have recently been independently appraised to have a fair market value higher
than the $5.66 per unit offered.
You were notified earlier this year that a proposal (the "Proposal")
will be submitted for approval by the limited partners to sell the Partnership's
oil and gas properties to Swift Energy Company and liquidate the partnership.
The Securities and Exchange Commission is currently reviewing the Joint Proxy
Statement/Prospectus information to be sent to you regarding the proposed sale
of the Partnership's remaining oil and gas assets. The information to be
provided to limited partners will include current financial statements, reserve
reports and fair market value estimates by three independent appraisers
consisting of two petroleum engineering firms and an investment banking firm.
This review could take another 45 days to complete. We hope to have this proxy
material in your hands no later than August 31, 1998.
Please note that for this sale and liquidation to occur it requires
approval by a majority vote of the limited partners in favor of the Proposal.
Thus there is no assurance that the Proposal will be approved or consummated. If
approved by the limited partners, the Partnership will be liquidated and
dissolved and final Schedule K-1s issued by year-end.
If the Proposal is approved, the liquidation distribution would be free
of any transfer fees and the ultimate liquidation value is expected to be higher
than $8.00 per unit with the final distribution being made in the fourth quarter
of 1998. Although the Managing General Partner is not advising you whether or
not to accept Madison's offer, we do believe that you should be made aware of
the Proposal in evaluating Madison's offer.
Even though Madison's purchase of limited partners' units would not
affect the properties which Swift would purchase if the Proposal is approved,
Madison would vote any units it acquires, which may or may not have an effect
upon the ultimate vote on the Proposal.
If you have any questions, please contact the Investor Relations
Department of Swift Energy Company at 281/874-2750 or 800/777-2750.
/s/ Bruce H. Vincent
_____________________
Sincerely,
Bruce H. Vincent
Senior Vice President
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