Saratoga Resources, Inc. (NYSE MKT: SARA, the 'Company') today provided
an update on the status of its operations following Hurricane Isaac.
Initial inspection of the Company′s properties identified no significant
damage to any of the assets. Pending restoration of power in certain
areas and certification of line integrity of third party pipeline
carriers, the Company′s production remains 100% shut-in. Based on input
from third party infrastructure operators, the Company anticipates that
third party issues will be resolved, and production restored, within
approximately one week. While production remains shut-in, the Company is
conducting several maintenance projects which would have otherwise
caused the subject fields to be shut-in.
Regarding completion and tie back operations that were ongoing on
landfall of Hurricane Isaac on August 28, 2012, the Company noted minor
damage and delays in completion of those operations on the Company′s
North Tiger well at Breton Sound Block 18 Field and Mesa Verde well at
Vermilion Block 16 Field. Work on those operations is now back on
schedule with only minimal delay and production from these new
completions expected in mid to late September.
Thomas F. Cooke, Saratoga′s Chairman and Chief Executive Officer said
'Just as we saw with Hurricane Katrina in 2005 and the twin hurricanes
of Gustav and Ike in 2008, our assets faired exceedingly well in
withstanding Hurricane Isaac with minimal damage sustained and the
ability to return to production in a very short time. We are using this
downtime to perform projects that would have required a shut down in the
future. Our ability to respond quickly to Isaac with minimal damage and
downtime and initiation of maintenance projects during the downtime is a
testament to the high quality and efficiency of our field personnel and
advance planning. In addition, we have taken advantage of commodity
price increases associated with Isaac to layer-in an additional hedge of
300 BOPD at $110 per barrel for the October thru December 2012 time
period and remain disciplined and active in our layered hedging
strategy.?
About Saratoga Resources
Saratoga Resources is an independent exploration and production company
with offices in Houston, Texas and Covington, Louisiana. Principal
holdings cover 32,185 gross/net acres, mostly held-by-production (all
depths), currently located in the transitional coastline and protected
in-bay environment on parish and state leases of south Louisiana. Most
of the company's large drilling inventory has multiple pay objectives
that range from as shallow as 1,000 feet to the ultra-deep prospects
below 20,000 feet in water depths of less than 10 feet. For more
information, go to Saratoga's website at and sign up for regular updates by clicking on the Updates button.
Forward-Looking Statements
This press release includes certain estimates and other forward-looking
statements within the meaning of Section 21E of the Securities Exchange
Act of 1934, including statements regarding the timing of resumption of
production or commencement of production. Words such as 'expects?,
'anticipates', 'intends', 'plans', 'believes', 'assumes', 'seeks',
'estimates', 'should', and variations of these words and similar
expressions, are intended to identify these forward-looking statements.
While we believe these statements are accurate, forward-looking
statements are inherently uncertain and we cannot assure you that these
expectations will occur and our actual results may be significantly
different. These statements by the Company and its management are based
on estimates, projections, beliefs and assumptions of management and are
not guarantees of future performance. Important factors that could cause
actual results to differ from those in the forward-looking statements
include the factors described in the 'Risk Factors' section of the
Company's filings with the Securities and Exchange Commission. The
Company disclaims any obligation to update or revise any forward-looking
statement based on the occurrence of future events, the receipt of new
information, or otherwise.
