Saratoga Resources, Inc. (NYSE MKT: SARA, the “Company”) today provided an update on its development drilling program during, and since the end of, the 2012 third quarter. During the quarter, development drilling operations were conducted on three wells, one in each of Breton Sound Block 18, Grand Bay and Vermilion Block 16 fields.
The SL 195QQ #202 “Jupiter” well was drilled in Grand Bay Field to a total depth of 9,688 feet measured depth (“MD”) and was completed in the 15 sand in early August 2012. The well tested on August 14, 2012 at a gross rate of 245 barrels of oil per day (“BOPD”) and 650 thousand cubic feet of gas per day (“MCFPD”), or net 254 barrels of oil equivalent per day (“BOEPD”), on a 15/64” choke with flowing tubing pressure (“FTP”) of 860 psi.
The SL 20433 #1 “North Tiger” well was drilled in Breton Sound Block 19 to a total depth of 9,532 feet MD/9,300 feet true vertical depth (“TVD”) and was completed as a dual producer in October 2012. The well tested on October 15, 2012 at a gross rate of 517 BOPD and 1,457 MCFPD on a 14/64” choke with FTP of 1,900 psi from the 7,100’ sand in the short string and 258 BOPD and 351 MCFPD on a 17/64” choke with FTP of 580 psi from the Cib Carst sand in the long string, or combined net 840 BOEPD.
The SL 3763 #14 “Mesa Verde” well was drilled in Vermilion Block 16 Field to a total depth of 16,258 feet MD and was completed in the LF-H sand in October 2012. The well tested on October 12, 2012 at a gross rate of 190 BOPD, 4,066 MCFPD, or net 685 BOEPD, on a 14/64” choke with FTP of 4,300 psi.
Mr. Andy Clifford, Saratoga’s President stated, “While we were challenged operationally and from a production standpoint by the effects of Hurricane Isaac in late August, we are pleased with the results of these development wells which have not only increased our production and converted reserves to PDP but also resulted in fifteen new pool discoveries in sands which had no booked reserves allocated to them pre-drill.” Further regarding the effects of Hurricane Isaac, Mr. Clifford added, “Our production was shut-in for approximately 15 days as a direct result of the hurricane and, indirectly, we have experienced and will continue to experience some lingering effects from the storm, including deferral of production during the restart of facilities, delays to routine well maintenance, delays in well completions and delays in flowline installation from the new development wells. Nonetheless, we are pleased that our assets continue to demonstrate a resilience to hurricanes and storms with minimal damage to our production infrastructure experienced from the storm, despite taking a direct impact.”