Saratoga Resources provides operations update

Independent oil and gas exploration and production company Saratoga Resources Inc., announced Dec. 4, 2012, an update on its planned operations.

The company has contracted the Parker 50-B drilling rig to begin drilling the QQ-209 “Buddy” development well. The Buddy well is designed as an infill development well in the non-pressured sand section of Grand Bay Field, in an attic position to and offsetting the QQ-201 and QQ-199 wells. The well will have a slight directional path to reach the targets in an optimum position. There are several shallow, non-pressured targets that range between 5,600 feet and 6,100 feet. The targets are predominately proved undeveloped reserves, but they also include probable and possible reserves, although the majority of these reserves are currently unbooked.

In addition, Saratoga has contracted the Moncla 118 workover rig to begin the first of two major rig recompletions in Grand Bay Field. The first of these recompletions involves the MP-47 SL 195QQ-24, where the company will attempt a gravel-pack completion of the 29M sand while setting up the 20 sand as a future non-gravel-pack completion. The second planned recompletion will be in the GPLD A-191 well, where the company will attempt a gravel-pack completion of the 8 sand and set up the 7 and X-9 sands as future non-gravel-pack completions.

Thomas F. Cooke, chairman and CEO of Saratoga Resources, said, “We are pleased to have resumed normal field operations after the delays caused by Hurricane Isaac and to bring our development program back on line with the commencement of these projects.”

Cooke noted that the Buddy well represents a resumption of Saratoga’s infill drilling program in Grand Bay Field. “Our Grand Bay infill drilling program, which was deferred in the wake of Hurricane Isaac, following our successful ‘Jupiter’ well, is focused on low-risk oil-dominated prospects and is expected to continue through 2013,” he said. “We expect each of these projects to be completed by early January 2013.”

He commented that, with Saratoga’s production and cash flow from existing wells returning to normal levels after the storm-related delays, the company is once again focused on adding new production from the deferred development projects and other projects in its development pipeline.

“These wells principally target oil reserves and are expected to bring our oil production volumes close to our oil production goals for 2012, with internal estimates for initial production from the three projects of approximately 550 net barrels of oil equivalent per day, of which an estimated 80% is expected to be oil production,” Cooke said. “We continue to curtail natural gas production and natural gas-focused development projects in the ongoing weak gas market – in turn, resulting in our natural gas production levels being below initial targets for the year. Although we have a large inventory of gas development opportunities that are economic even in today’s price environment, we will remain focused on oil production, where we continue to enjoy substantial premiums to West Texas Intermediate pricing, while natural gas prices remain low.”   

Saratoga Resources is an independent exploration and production company with offices in Houston, Texas, and Covington, Louisiana.

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