Saratoga Resources, Inc. (NYSE MKT: SARA, the “Company") today provided an update on the status of its operations following Hurricane Isaac. Initial inspection of the Company’s properties identified no significant damage to any of the assets. Pending restoration of power in certain areas and certification of line integrity of third party pipeline carriers, the Company’s production remains 100% shut-in. Based on input from third party infrastructure operators, the Company anticipates that third party issues will be resolved, and production restored, within approximately one week. While production remains shut-in, the Company is conducting several maintenance projects which would have otherwise caused the subject fields to be shut-in.
Regarding completion and tie back operations that were ongoing on landfall of Hurricane Isaac on August 28, 2012, the Company noted minor damage and delays in completion of those operations on the Company’s North Tiger well at Breton Sound Block 18 Field and Mesa Verde well at Vermilion Block 16 Field. Work on those operations is now back on schedule with only minimal delay and production from these new completions expected in mid to late September.
Thomas F. Cooke, Saratoga’s Chairman and Chief Executive Officer said “Just as we saw with Hurricane Katrina in 2005 and the twin hurricanes of Gustav and Ike in 2008, our assets faired exceedingly well in withstanding Hurricane Isaac with minimal damage sustained and the ability to return to production in a very short time. We are using this downtime to perform projects that would have required a shut down in the future. Our ability to respond quickly to Isaac with minimal damage and downtime and initiation of maintenance projects during the downtime is a testament to the high quality and efficiency of our field personnel and advance planning. In addition, we have taken advantage of commodity price increases associated with Isaac to layer-in an additional hedge of 300 BOPD at $110 per barrel for the October thru December 2012 time period and remain disciplined and active in our layered hedging strategy.”
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