Saratoga Resources.pdf 5321 KB - EnerCom, Inc.

Investment ConsiderationsHigh-Quality ResourceBase• Large, diversified reserve base with strong cash flows in the shallow transition zone in the state waters ofLouisiana• 32,119 gross / net acres, all depths, mostly Held by Production (“HBP”)• Net daily production of 3,543 Boepd (1) (62% oil) from 101 wells with 15 years of proved reserve life• High quality Heavy Louisiana Sweet / Light Louisiana Sweet crude prices at a substantial premium to WTI‒ Currently receiving approximately $21/bbl premium in pricingSignificant AssetCoverage• 19.0 MMBoe of proved reserves as of 1/1/12• Using SEC reserves PV-10 of $464.3MM, pro forma net debt will be covered 3.4x by total proved reserves‒ Pro forma net debt will be ~10.0x covered by 3P reserves (2)• Huge upside in exploratory drilling inventory with 50 BCF shallow gas and >10 TCF deep/ultra-deep gasLarge Workover &Drilling Inventory ofProved ReservesControl ofInfrastructure & 3rdParty ProcessingRevenueAcquisitionOpportunity Pipeline• 62 proved workovers/recompletion opportunities and 87 proved undeveloped opportunities in 24 proveddevelopment locations across 12 fields• Near term development capital budget focused on PUD conversion and low-risk recompletions• Six production platforms and over 100 miles of pipelines allow the opportunity to expand through jointventures with nearby producers• Additional revenues from 3rd party handling, processing and contract operations• Accretive “add-on” opportunities nearby existing assets and existing “Hub-and-Spoke” infrastructure• Since 2009, over 175 transactions for $8.5B have occurred in the areas the Company operatesExperiencedManagement Team• Extensive South Louisiana/Gulf Coast operational expertise with particular emphasis on cost-control andreservoir management• Over 100 years of Gulf Coast experience across the management team(1) Average daily production on 12/17/12.(2) Pro-forma net debt totals $136 MM, including $25 MM of notes issued in December 2012.31