DISCOVERY at LINEHAM CREEK by CHEVRON

Houston, TX (Sharwellnewswire.com) February 27, 2013 - McMoRan (MMR) recently announced a significant oil and gas discovery at the ultra-deep Lineham Creek prospect in coastal Louisiana. McMoRan said in a statement that they’ve found proved, probable and possible gross reserves of 547 billion cubic feet (bcf) equivalent, with 12.9 bcf of that falling into the proved category, net to McMoRan’s 36% working interest in the prospect, which is operated by Chevron (CVX) with 50% working interest. This announcement bodes well for Saratoga Resources (SARA) considering that the Company’s Long John Silver prospect, underlying their Vermilion 16 field, is in the thick of where Chevron and McMoRan are operating the ultra-deep Lineham Creek and Davy Jones prospects, respectively. Vermilion 16 is located 30 miles SW of Lineham Creek prospect, while McMoRan’s Davy Jones #1 and #2 wells are located 30 miles to the SE. The aforementioned discovery is in Lower Tertiary sands, which are believed to also be prospective at Long John Silver prospect.

Saratoga is well positioned with a natural gas production platform at Vermilion 16 plus a two mile pipeline to shore with over 4,000 acres under lease. McMoRan and Chevron have been leasing actively over the past year or two close to Long John Silver, increasing their lease position to over 6,000 acres immediately surrounding Saratoga’s Vermilion 16 acreage position and also taking additional leases in federal waters over the adjoining and connected England prospect. This could be viewed as lending some industry affirmation to the chances for prospectivity at Long John Silver. Saratoga attributes the new interest in the area to recently reprocessed seismic data.

About SARA

SARA is an independent oil and natural gas company with operations in the transitional zone of Louisiana. The company’s focus is on conventional targets with multiple, stacked pay zones in known fields, including Grand Bay, Vermilion 16, and several fields in the Main Pass and Breton Sound areas. The company also has another ultra-deep prospect underlying Grand Bay field, called Invictus, which could be a game changer. Saratoga’s inventory of proved developed nonproducing and proved undeveloped drilling locations provides ample running room to grow production and reserves through 2013.

Proved reserves were 19.0 MMBOE, consisting of approximately 42% oil and 58% natural gas at year-end 2011. Probable reserves were 12.9 MMBOE (31% oil) and possible reserves were 33.7 MMBOE (41% oil) at December 31, 2011. Approximately 88% of proved reserves are classified as proved developed nonproducing and proved undeveloped reserves, resulting in a large inventory of PUD wells, workovers, and recompletions. At December 31, 2011, Saratoga Resources had 32,185 net acres, most of which are held-by-production (HBP), holding all depths.   Production totaled 945.6 MBOE in 2011, and was 64% oil and 36% natural gas. As of September 30, 2012, Saratoga had 101 net producing wells. The company’s crude oil is priced at Light Louisiana Sweet (LLS) and Heavy Louisiana Sweet (HLS), which commands a premium to West Texas Intermediate (WTI). The differential between Saratoga’s realized sales price for crude and WTI was $10.24 per barrel in the third quarter of 2012. Similarly, the company’s high BTU natural gas realized a $1.25 premium to the Henry Hub contract in 3Q:12.

The company owns interest in nine other fields in the Main Pass and Breton Sound areas; all nine fields are in shallow waters on state leases in Plaquemines, Vermilion and St. Mary parishes of southern Louisiana. Saratoga operates all its wells with 100% working interest in virtually all leases.

The company’s website is:

www.saratogaresources.com