This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Saratoga Resources, Inc. Provides Operations Update

Stocks in this article: SARA

Saratoga Resources, Inc. (NYSE MKT: SARA; the "Company" or "Saratoga") today provided an update on planned operations for the remainder of 2012.

The Company is contracting the Parker 50-B drilling rig to begin drilling the QQ-209 “Buddy” development well within two weeks. 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 5600 feet and 6100 feet. The targets are predominately proved undeveloped reserves but also include probable and possible reserves, although the majority of these reserves are currently unbooked.

In addition, the Company is contracting the Moncla 118 workover rig and expects to begin the first of two major rig recompletions in Grand Bay Field within one week. 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 to a gravel-pack completion of the 8 sand and set up the 7 and X-9 sands as future non gravel-pack completions.

Management Comments

Mr. Thomas F. Cooke, Chairman and Chief Executive Officer 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. The Buddy well represents a resumption of our 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. We expect each of these projects to be completed by early January 2013." Mr. Cooke went on to say, "With our production and cash flow from existing wells returning to normal levels after the storm-related delays, we are once again focused on adding new production from the deferred development projects and other projects in our 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. 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, which 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."

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs