Saratoga Resources is planning seven through tubing plug backs in the Grand Bay Field in the first quarter of 2009 as the first phase of the Company’s 2009 capital development program. This phase of the development campaign will cost the Company an estimated $525,000 and is expected to convert net 105 thousand barrels of oil (MBO) plus net 565 million cubic feet of gas (MMCFG), or 200 thousand barrels of oil equivalent (MBOE), from proved developed non-producing and probable developed non-producing reserves to the proved developed producing (PDP) category at an estimated development cost of $0.38 per BOE. The production impact of this program is expected to be an additional 100 barrels of oil per day (BOPD) plus 1,300 thousand cubic feet of gas per day (MCFPD).
Further to recent news related to the recompletions at SL 195 QQ#205 and SL 195 QQ#15, Saratoga announced that the SL 195QQ#204 recompletion of the 10B sand is currently producing at a stabilized rate of 1,907 MCFPD, 0 BOPD plus 8 barrels of water per day (BWPD) through a 13/64 inch choke.
Andy Clifford, Saratoga’s President, said, "With the current market conditions of price uncertainty, Saratoga is starting its 2009 capital development program with low-cost and low-risk workovers and recompletions at Grand Bay. We are continuing full field studies at Grand Bay and Vermilion 16 and will continue to identify high-grade opportunities for ongoing development. We have a number of development drilling options which we will consider as the pricing outlook stabilizes. However, the aforementioned development opportunities are examples of the 'low hanging fruit' that exist in our portfolio."
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