Saratoga Resources, Inc. (NYSE MKT: SARA; the “Company” or “Saratoga”) today announced that it has been awarded four leases in the shallow waters of the Central Gulf of Mexico by the U.S. Bureau of Ocean Energy Management.
The four lease blocks cover a total of 19,814 acres on a net and gross basis, and are all located in the shallow Gulf of Mexico Shelf in water depths of 13 to 77 feet and very close to existing infrastructure. The leases contain multiple prospects, all well-defined by high-quality 3D seismic data and tied to well control with either production tests, log pay or sidewall core shows. Furthermore, most of the prospects have amplitude versus offset (AVO) support, which is a common geophysical technology for risk reduction in the oil and gas industry. Saratoga will be seeking joint venture partners for these blocks with first drilling targeted for 2014.
Andy C. Clifford, Saratoga’s President, said, “We are excited at being awarded these four shallow water blocks in our first foray into the Gulf of Mexico Shelf. The leases include two in the Ship Shoal area, blocks 78 and 110, and two adjoining blocks in the Vermilion area, blocks 152 and 153. Our internal gross potential reserve estimates relative to these blocks are 51.3 million barrels of oil equivalent (“MMBOE”), of which 5.4 MMBOE are expected to be qualified as proved undeveloped (“PUD”). We are attracted by the high liquid content of these reserves, which we estimate to exceed 8 MMBO of gross 3P reserves.” Clifford added, “We believe the addition of these prospects both upgrades and enlarges our drilling inventory while adding to our reserve base and diversifying our holdings.”
Press Release, July 8, 2013