During 2011, our efforts resulted in 200% reserve replacement. Increased production, together with a strong pricing environment, realizing premium pricing for heavy Louisiana sweet and light Louisiana sweet crude, drove a 44% increase in revenues to a record $76 million and a 70% increase in EBITDAX to a record $48 million. While our average daily production has steadily increased, it is just now reaching new highs in excess of 4,200 net BOEPD. Maintaining our production levels, much less growing production, has been especially difficult in the current natural gas price environment where our inclination is to curtail gas production. We currently have approximately 5.4 million cubic feet of gas per day (“MMCFGPD”), net, curtailed production from eight wells and/or pending recompletion work that is being postponed due to natural gas prices. Additionally we have been challenged by slower than expected third party fabrication of production facilities, installation of new compression systems and the reconfiguration of our water handling but most of those delays are now behind us. Despite those challenges, we have grown our production to new highs, increased our reserves and achieved record earnings per share of 93 cents in 2011.
Our prospects are enhanced by what we believe is an intriguing asset portfolio that offers both a deep inventory of low risk development opportunities and tremendous upside potential from multiple exploration targets underlying our held by production (“HBP”) lease holdings.
Financially, 2011 saw Saratoga achieve several key milestones. Most notably, we successfully completed two private placements bringing in more than $35 million of new equity and completed an offering of $127.5 million of senior notes allowing us to retire all of our prior debt and letter of credit obligations. As a result, we reduced our total debt by $18 million, extended the maturity of our senior debt from 2012 to 2016 and substantially strengthened our cash position and shareholders’ equity. Currently, we are projecting cash on hand of approximately $20 million at March 31, 2012.
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