Saratoga Resources, Inc. Provides Operational Update on Development Activities
Saratoga Resources, Inc. (OTCBB:SROE) (the “Company”) today provided an operational update relating to activities in the Grand Bay and Vermilion 16 Fields.
Grand Bay Field
The Company currently has two rigs deployed in the Grand Bay field in Plaquemines Parish, Louisiana, engaged in development drilling and recompletion work in the field. The Company has a 100% working interest in the field.
The Tetra 8 rig, in October, successfully completed gravel pack recompletions of the 1,600′ sand in the Main Pass 47 SL 195 QQ#15 well and the 10B sand in the SL 195 QQ#205 well in the Grand Bay field, and began a gravel pack workover of the 3B sand in the SL 195 QQ#149 well. The rig will then undertake a gravel pack recompletion of the 10B sand in the SL 195 QQ#204 well with all operations expected to be completed in early November. The Main Pass 47 SL 195 QQ #15 is currently awaiting hook-up while the SL 195 QQ #205 tested at 205 BOPD plus 1,010 MCFGD. All of these recompletions are expected to add significant production before year end.
The Axxis Justice rig began drilling on the GPLD A #191 development well in the field on October 19, 2008. The GPLD A #191 is a directional well targeting up to 30 stacked sands located in an attic position to known oil and gas pays along a well-defined fault. The well has a projected total depth of 12,443′ with a total vertical depth of 10,830′. As of November 2, the well was at a total measured depth of approximately 10,121′ (8,780′ true vertical depth) and the Company expects to reach final total depth in early November.
Additionally, the Company has engaged Collarini Associates to undertake a full field study of the Grand Bay Field. Work began in early October and is expected to continue into the first quarter of 2009.
Vermilion 16 Field
The Company has engaged NuTech Energy Alliance to perform a full field study of the Vermilion 16 Field where the Company has a 100% working interest. As part of this effort, the Company has recently licensed 3D seismic data covering the entire field and will integrate these data with petrophysical analysis of the wells to build a three dimensional model of the field to maximize ultimate recovery of oil and natural gas from the reservoir.
Andy Clifford, Saratoga’s President, said, “Deploying two rigs to begin both re-completion work and development drilling in Grand Bay is a major step forward in the growth of Saratoga Resources. When we acquired this field we were confident that it had significant untapped development potential and the initiation of a drilling program along with the full field study will further define this potential.” Mr. Clifford went on to say, “Our engagement of NuTech will ensure that we maximize both hydrocarbon recovery and return on investment in the Vermilion 16 Field.”
About Saratoga Resources
Saratoga Resources, Inc. is an independent exploration and production company headquartered in Austin, Texas, with offices in Houston, Texas, and Covington, Louisiana. The Company engages in the acquisition and development of oil and gas producing properties that allow the Company to grow through low-risk development and risk-managed exploration. The Company currently operates properties in Texas and Louisiana with principal holdings covering approximately 30,000 net acres located in the state waters offshore Louisiana.
About NuTech Energy Alliance
NuTech Energy Alliance, Ltd. provides advanced petrophysical, geological and engineering solutions to oil and gas companies worldwide, using proprietary software and modeling processes. NuTech has evaluated over 25,000 wells while working for more than 450 oil and gas companies worldwide. NuTech Energy had a 97% accuracy rate in 2007. NuTech is a privately-owned company founded in 1998 by former Schlumberger and Numar (now Halliburton) executives who pioneered Nuclear Magnetic Resonance (NMR) research and development. Headquartered in Humble, Texas, with over 65 employees, NuTech has 5 offices in the U.S. and 7 offices worldwide.
About Collarini Associates
Collarini Associates, headquartered in Houston with offices in Metarie, Louisiana, has provided integrated oil and gas reservoir evaluation services to oil and gas companies in the Gulf Coast region since 1985.
This press release includes certain estimates and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including statements with respect to anticipated completion dates of drilling operations and full field studies, drilling results and production additions resulting from well recompletions, operating and financial performance, growth opportunities, growth rates, potential acquisition opportunities, and other statements of expectation. Words such as “expects,”"anticipates,”"intends,”"plans,”"believes,”"assumes,”"seeks,”"estimates,”"should,” and variations of these words and similar expressions, are intended to identify these forward-looking statements. While we believe these statements are accurate, forward-looking statements are inherently uncertain and we cannot assure you that these expectations will occur and our actual results may be significantly different. These statements by the Company and its management are based on estimates, projections, beliefs and assumptions of management and are not guarantees of future performance. Important factors that could cause actual results to differ from those in the forward-looking statements include the factors described in the “Risk Factors” section of the Company’s filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or revise any forward-looking statement based on the occurrence of future events, the receipt of new information, or otherwise.