Saratoga Highlights 2010 Year-End Reserves at 108 Bcfe

Saratoga announced that year-end 2010 proved reserves, computed in accordance with Securities and Exchange Commission (SEC) guidelines, totaled 108 billion cubic feet of gas equivalent (BCFE). The SEC case net present value of future cash flow, discounted at 10% (PV10), at year-end 2010 totaled $316 million, a 41% increase from the previous year. Using NYMEX strip pricing at close-of-business on December 31, 2010 and Society of Petroleum Engineering (PE) methodology, the year-end 2010 PV10 of Saratoga's proved reserves totaled $438 million. Including probable and possible reserves and using SPE methodology and NYSE strip pricing, the year-end 2010 PV10 of Saratoga's total reserves (3P) amounted to $1,245 million.

Year-End 2010 SEC Reserves

Saratoga's year-end 2010 SEC case proved reserves consisted of 7.9 million barrels of oil (MMBO) and 60.9 billion cubic feet of gas (BCFG), or 108 BCFE. Proved developed reserves comprised 19% of year-end 2010 reserves. Year-end 2010 probable reserves totaled 4.2 MMBO and 38.0 BCFG, or 63 BCFE, and possible reserves totaled 13.1 MMBO and 101.7 BCFG, or 181 BCFE. In summary, Saratoga's year-end 2010 SEC case 3P reserves amounted to 352 BCFE.

For year-end 2010, SEC reserve calculations were based on the average first day of the month price for the prior 12 months. The prices utilized for the year-end 2010 reserve report were $79.43 per barrel of crude oil and $4.38 per Mmbtu of natural gas.

Year-End 2010 SPE Reserves

Using SPE methodology and strip pricing, Saratoga's year-end 2010 proved reserves consisted of 8.0 MMBO and 62.6 BCFG, or 111 BCFE. Using that same pricing and methodology, year-end 2010 probable reserves totaled 4.2 MMBO and 38.2 BCFG, or 63 BCFE, with PV10 of $241 million, and possible reserves totaled 13.2 MMBO and 109.4 BCFG, or 189 BCFE, with PV10 of $575 million. Saratoga's 3P reserves, computed using NYMEX strip pricing at December 31, 2010 and SPE methodology, amounted to 363 BCFE.

December 31, 2010 reserve estimates were prepared by the independent reserve engineering firm Collarini & Associates, Inc. in accordance with SEC and SPE guidelines.

Saratoga has approximately 109 active producing wells in 12 fields and a development inventory of 54 proved developed non-producing (PDNP) and 92 proved undeveloped (PUD) opportunities, as of January 1, 2011.