This is a Big Bet by SARA

[dan_s]

Houston, TX – July 2, 2013 – Saratoga Resources, Inc. (NYSE MKT: SARA; the “Company” or “Saratoga”) today provided an update on its upcoming SL 1224 #25 “Rocky” well in Breton Sound Block 32 field.

The Rocky well, in 13 feet of water depth, will be drilled as a 70 degree directional pilot hole to 7,582’ MD/5,829’ TVD, or just past the objective 5800’ sand, when 7-5/8” casing will be set. The well will then be plugged back before drilling a 6-3/4” horizontal section 750 feet laterally to 8720’ MD/5790’ TVD. Saratoga has contracted the Parker 77B barge rig to drill the well which is scheduled to spud on July 4.

Drilling is expected to take 3 weeks with an additional week to complete the well. On completion, Saratoga plans to tie the well back to its Breton Sound 32 platform.
Thomas F. Cooke, Chairman and CEO, stated, “We are about 30 days behind schedule due to rig availability but are very pleased to have the Parker 77B rig now moving on location and excited to be commencing drilling on our Rocky well. Rocky is the first of what we believe are multiple high impact potential horizontal well candidates we have identified in Breton Sound 32 and other fields There have been four previous horizontal completions in Breton Sound 32 field, one in Main Pass 25 field and one in Grand Bay field. All of these wells recovered 2.5 to 3 times more hydrocarbons than a vertical completion in the same reservoir and initial production rates were up to 3 times higher with higher rates sustained for a longer period before decline set in.” Mr. Cooke added, “We expect the completed well cost to be close to $7 million.”

[wilmawatts]

Big bet, high impact well.

Kerr McGee tried similar wells nearby 15 years ago and did very well.

Guess is 1,000 bod IP if they can stay in the oil leg. If not, will test lower but with water cut well will produce for a long long time.

Company thrown out of a small cap index so programmed selling hammered the stock.