Saratoga Buys Additional Acreage At Louisiana Lease Sale

Acquired two new leases in the Panther Prospect and Tiger Toux Prospect totalling 857.96 acres.

Saratoga Resources Inc. (NYSE: SARA) successfully acquired two new leases at the Louisiana state lease sale, held on Sept. 11 in Baton Rouge.

Saratoga acquired leases on the 552.25 acre Panther Prospect and the 305.71 acre Tiger Toux Prospect, for a combined total of 857.96 acres. The leases are located in Breton Sound Blocks 18, 19 and 32, contiguous to Saratoga’s existing lease holdings in the Breton Sound 18 and Breton Sound 32 fields and close to existing facilities and pipeline infrastructure. Saratoga has a 100% working interest in these three year leases, both of which carry a 21% royalty burden. Water depth at both prospect areas is less than 20 feet and drilling on both prospects, utilizing an inland barge rig, is expected to occur in early 2014. Both prospects are defined by high-quality 3D seismic data and abundant well control.

“We are pleased to have successfully acquired these leases, each of which we expect to contain a component of Proved Undeveloped reserves as well as additional non-proved reserve potential. The Panther Prospect is located on the upthrown side of the major west-east trending fault that delineates our Breton Sound 32 field and has three stacked target sands, each of which has either tested or produced hydrocarbons downdip. The Tiger Toux Prospect sits to the immediate north-west of our Breton Sound 18 field and is analogous to our successful North Tiger Prospect, which we acquired in a similar state lease sale in September 2010. The North Tiger well was drilled in 2011 and has been one of our most successful wells, producing from the deeper Cib Carst sand and the shallower 7,100 foot sand. A similar success was achieved with our Catina Prospect, acquired at the same September 2010 state lease sale and the Catina well, drilled in 2011, which like North Tiger has been one of our most prolific producers over the last two years. These two wells are just now being put on gas lift, which we expect to significantly extend well life and increase estimated ultimate recoverable reserves. As with the recent shallow Gulf of Mexico leases, we are focused on only leasing what we believe are very low risk exploration prospects that are defined by high-quality 3D seismic data, preferably with amplitude versus offset criteria and are close to existing infrastructure for quick hook-up and, based on available data, are believed to include high oil content and a component of proved undeveloped reserves with additional upside,” Andy C. Clifford, Saratoga’s president, said in the release.

Saratoga Resources Inc. is an independent energy company engaged in the acquisition, exploitation, production, and development of crude oil and natural gas properties in the U.S. The company is based in Houston.