Saratoga Resources Acquires 5 New Leases, Updates of Vermilion 16 Field
Saratoga Resources has announced the acquisition of additional leasehold acreage and provided an update on activities relating to its Vermilion 16 Field.
Saratoga acquired five new leases at the Louisiana state lease sale, held on December 10, 2008 in Baton Rouge. Saratoga, through its wholly-owned subsidiary, Harvest Oil and Gas, LLC, acquired tracts 40598, 40600, 40602 and 40603, covering a total area of 521.93 acres, in Vermilion Blocks 5, 6 and 17. At the same sale, Saratoga, through its wholly-owned subsidiary, The Harvest Group LLC, acquired tract 40636, covering a total area of 66 acres, in Main Pass Block 53. Saratoga has a 100% working interest in these three year leases.
Vermilion 16 Update
The Company recently licensed 25 square miles of high quality 3D seismic data from Fairfield Industries, Inc. in order to better evaluate its Vermilion 16 asset and accelerate the development of the prospect's proved undeveloped reserves (PUD), consisting of 29,998 million net cubic feet (MMCF) of natural gas and 324 thousand net barrels of condensate (MBC). NuTech Energy Alliance is currently conducting a full field study of Vermilion 16 on behalf of Saratoga. This study is expected to: (a) identify unswept areas of the field for future infill drilling, (b) identify and confirm a number of directional development drilling opportunities, (c) identify shallower bypassed gas pay, and (d) identify low resistivity bypassed gas pay.
Earlier this year, the Company recompleted the SL 3762 #1 well in the Vermilion 16 field, which was completed in the Rob 54-F Sand through perforations at 13,004–13,014 feet. The well initially flowed at a rate of 1,207 thousand cubic feet per day (MCFPD) and 45 barrels of condensate per day (BCPD) on a 13/64 inch choke with 3050 pounds of flowing tubing pressure (FTP). The success of the Rob-54 completion resulted in a reserve addition of 34 MBO plus 1,102 MMCF net reserves to the proved developed producing (PDP) reserve category.
This plugback was identified by a pulsed neutron log (PNL) that was run in the well in June 2007. There are enough proved developed non-producing (PDNP) reserves recognized on the PNL log to justify an acceleration well for the field. The data will be used to help us accelerate the drilling of over 37 BCF + 400 MBO of PUD reserves The state also recently approved a voluntary unit covering approximately 600 acres across state leases 3762 and 3763, which will insure that the lease area covered by these reservoirs is protected.
Andy Clifford, Saratoga's President, said, "The Vermilion 16 Field has historically produced from 30 stacked sands between 10,500-16,200 feet. The Company has 5 existing PDNP opportunities in 3 wellbores and 4 PUD opportunities identified to date. There is significant untapped reserve potential with only 2 wells drilled to a depth greater than 17,000 feet. The Vermilion 16 area is surrounded by several fields that each have cumulative production of over 3 trillion cubic feet of gas. These new leases are contiguous to Saratoga's existing state leases 3762, 3762 and 17156 and either contain extensions to existing proved reserves or provide access to surface locations for proposed directional development wells to be drilled in the next 1-2 years."