Saratoga Resources Inc. (NYSE: SARA) provided an update on its recent development drilling activity in Breton Sound 32 field in southeastern Louisiana.
The SL 1227-25 “Rocky” well, in 13 feet of water depth, was spud with the Parker 77B inland barge rig on July 4. A directional pilot well was drilled to a total depth of 6254 feet measured depth/5858 feet true vertical depth, as planned, before plugging back and drilling a 750 foot sidetrack horizontal section to a total depth of 7178 feet measured depth/5790 feet total vertical depth, reached on July 24. The well was subsequently completed and the rig moved to our Zeke location in the same field on Aug. 3. The Rocky well tested on Aug. 20 at a gross rate of 600 barrels of oil per day and 120 thousand cubic feet per day on a 16/64 inch choke with FTP of 650 psi, or net 508 barrels of oil equivalent per day, and has been tied back to Saratoga’s Breton Sound 32 platform. The rate continues to improve as the well stabilizes. Final costs on the Rocky well are expected to come in below the pre-drill AFE.
The SL 1227-26 “Zeke” well was spud on Aug. 5 and drilled as a directional hole to a total depth of 6,430 feet measured depth/5836.7 feet total vertical depth. The well is a high angle directional well, with a short reach horizontal section, in the same 5800 feet sand as Rocky but in the eastern portion of Breton Sound 32 field. There is also an uphole 5,750 feet sand recompletion opportunity in the Zeke well, which can be accessed in the future. The Zeke well is awaiting completion and testing. If successful, the Zeke well will also be tied back to Saratoga’s Breton Sound 32 platform.
“Our successful completion of Rocky is a significant milestone for Saratoga and is the first of what we believe are a number of high impact horizontal opportunities already identified in Breton Sound 32 and other fields. Previous horizontal completions within our leasehold footprint, including four in Breton Sound 32 field, one in Main Pass 25 field and one in Grand Bay field, have 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. Zeke targeted the same sand as Rocky and is presently awaiting completion and testing. Subject to completion and testing of Zeke, we expect to have both wells producing before the end of August," said Andrew C. Clifford, president, in the release.
Pending completion of Zeke, Saratoga is evaluating other drilling candidates such as the Charlie well, also in Breton Sound 32 field, and several opportunities in Grand Bay. This is consistent with the company strategy to grow production organically via the drill-bit with its primary objective being higher impact wells like Rocky.
Saratoga Resources Inc. is an independent energy company engaged in the acquisition, exploitation, production, and development of crude oil and natural gas properties in the U.S. The company is based in Houston.