Saratoga Resources announced year-end 2009 net proved reserves, as of January 1, 2010 using NYMEX strip pricing at close-of-business on December 31, 2009 and Society of Petroleum Engineering methodology, of 8.3 million barrels of oil and 65.5 billion cubic feet of gas, or 115.5 billion cubic feet of gas equivalent, with a net present value of future cash flow, discounted at 10%, of $487 million. In addition, the Company announced year-end probable reserves of 3.9 MMBO and 46.7 BCFG, or 70.5 BCFE, with PV10 of $235 million, and possible reserves of 14.4 MMBO and 105.6 BCFG, or 191.9 BCFE, with PV10 of $446 million. In summary, Saratoga’s 3P net reserves amount to 377.9 BCFE with PV10 of $1.17 billion.
Saratoga has a development inventory of 67 proved developed non-producing and 90 proved undeveloped opportunities, as of January 1, 2010.
Saratoga also announced the successful recompletion of the State Lease 3762 #1 well in the Vermilion 16 Field in the Middle Miocene Cibicides 38 reservoir. The well flowed at a stabilized rate of 3.810 million cubic feet of gas per day with 4 barrels of oil per day on a 20/64 inch choke. In addition, following a workover of the State Lease 18078 #1 (Tomahawk) well in Breton Sound Block 32 Field, Saratoga announced that the well flowed at a rate of 1.250 MMCFPD and 140 BOPD on a 19/64 inch choke.
Saratoga also announced that it has entered into a natural gas, crude and processing marketing/administration agency agreement with Transparent Energy Services, effective April 1, 2010.
Andy C. Clifford, Saratoga's President said, "Saratoga's development program was scaled back significantly during 2009 due to lower commodity prices at the beginning of the year, extreme weather conditions in the last quarter, and our bankruptcy filing. Despite this, we have been able to maintain our production levels and expect to exceed our projections by year-end. Field studies have yielded significant reserve adds and we now have a deep inventory of development options from which to choose. Recent successes, such as those at Vermilion 16 and in Breton Sound 32, demonstrate that Saratoga has an array of development options, in addition to our drilling inventory of 26 proved development wells, in our three main fields - Grand Bay, Main Pass 46 and Vermilion 16."
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