SARATOGA RESOURCES, INC. (NYSE MKT:SARA) Reconfirmed as a Buy by CK Cooper & Company

Report Date 12/21/2012 - SARA provided an update on its current Gulf Coast operations.

Houston, TX ( January 17, 2013 - CK Cooper states in the report - "The company reported that it has completed workover operations in the QQ-24 well and has performed diagnostics work on the A-191 well to develop a plan to maximize production from the well. Additionally, SARA has contracted a rig to drill its QQ-209 “Buddy” development well. Recall, development operations were resumed with funds from the firm’s recent Senior Secured Notes offering of $25MM, after being postponed  temporarily because of a constraint on cash flow due to the lingering impact of Hurricane Isaac, which resulted in the deferral of more than $7MM in revenue. Management reported that the workover on the QQ-24 well came in under budget and ahead of schedule and the Buddy development well should be drilled by year-end. Reiterate BUY and $7.00 price target. In our opinion, SARA is undervalued on a proved reserve basis and development of the firm’s PUD inventory is the key to unlocking its asset base. With the resumption of development operations, the firm appears to be moving in that direction."

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 About (NYSE MKT: SARA):

Grand Bay Field, discovered by Gulf Oil in 1938, is located in Plaquemines Parish in a marsh area east of the Mississippi River. With water depths range from 0-5-feet, Grand Bay has produced over 250 million barrels of oil equivalent (MMBOE) from 65 individual reservoir sands. Saratoga holds a 100% working interest (WI) for all rights at all depths in 17,000 acres of HBP leases.  In addition, Saratoga owns a high quality, proprietary 90-square mile 3-D seismic survey covering the field and its environs. The company has a large inventory of proposed development wells in the field.

Saratoga has mapped several deep and ultra-deep gas/condensate prospects with 5.8 trillion cubic feet of gas (TCFG) plus 600 million barrels of oil (MMBO) potential. One of these prospects, Zeus, is a 5,000-acre “turtle” structure in the Big Hum sands between 18,000-20,000 feet with bailout potential in the overlying Cib Carst and Tex W sands, which reduces the commercial risk. In addition, 50 billion cubic feet of gas (BCFG) of shallow gas potential has been identified and mapped at depths < 5,000 feet.

The Vermilion 16 Field is located in state waters, offshore Vermilion Parish with water depths <10 feet. The company holds a 100% WI in several leases with 4,095 gross/net acres, mostly HBP, with all rights for all depths. This field was discovered in 1962, and has produced >400 BFCG from more than 30 individual reservoir sands. Saratoga has identified and permitted several proposed development wells utilizing its non-proprietary 25-square mile 3-D seismic survey, and has current plans for immediate development.

The company has mapped a large ultra-deep gas prospect called Long John Silver with Wilcox, Tuscaloosa and Lower Cretaceous objectives at depths of 23,000-30,000 feet. The prospect sits in the main Lower Wilcox sand fairway between McMoRan’s Davy Jones discovery to the SE, and the Lineham Creek deep test, currently being drilled by Chevron and McMoRan to the NW. Saratoga is in negotiations with McMoRan Oil and Gas regarding a joint venture with the purpose of exploring the ultra-deep potential.

In addition, Saratoga owns and operates approximately 10,564 gross/net acres in several producing fields, offshore Plaquemines and St. Bernard Parishes, LA. Saratoga holds a 100% WI in all wells and has licensed approximately 400 square miles of high quality 3-D seismic data over the Main Pass and Breton Sound areas.

Contact Info:
Brad Holmes
(713) 654-4009
7500 San Felipe Suite 675
Houston, Texas 77063