Saratoga Resources (SARA)

[dan_s]

First Call has an $11.50 12-month price target on SARA. That is slightly higher than my Fair Value estimate. If the company can reach their guidance of 5,000 boepd (55% oil) by year-end and natural gas prices firm up this winter, the share price should move up. With the private placement below, they now have the capital needed to carry out their program. Their production growth should come from low risk recompletions. - Dan

Houston, Texas, May 24, 2012—Saratoga Resources, Inc. (NYSE MKT: SARA) (the “Company”) today announced the closing of a $19.3 million private placement of common stock, before fees and expenses, to select institutional and accredited investors and, in a separate transaction, the receipt of $0.8 million of proceeds from the exercise of outstanding warrants.

The Company sold an aggregate of 3,089,360 shares of common stock in the private placement at $6.25 per share. C.K. Cooper & Company (Member: FINRA/SiPC/MSRB) and Ladenburg Thalmann & Co., Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE MKT: LTD), acted as co-placement agents in the offering.

Thomas Cooke, Chairman and Chief Executive Officer of Saratoga, stated “We are pleased to have this additional capital to fund acceleration of our drilling and development program. While we have successfully executed our business plan out of cash flow for more than 2 years, we believe that this new capital will allow us to accelerate the timetable for drilling attractive prospects in our portfolio.”

About Saratoga Resources
Saratoga 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, currently located in the transitional coastline and protected in-bay environment on parish and state leases of south Louisiana. For more information, go to our website at www.saratogaresources.com and sign up for regular updates by clicking on the Updates button.