The lease has a primary term of three years and provides for a lease bonus, including fees, of $86,026.05 with annual rentals of $37,171.75 and a 25% royalty to the state of Louisiana.
The lease includes acreage previously operated by Saratoga and the SL 5097 #1 well which was temporarily abandoned by Saratoga pending deployment of a workover rig.
Saratoga’s most recent estimate of reserves associated with the acreage reflects proved developed shut-in gross reserves of 48 thousand barrels of oil and 1,234 million cubic feet of gas, or 254 thousand barrels of oil equivalent.
Saratoga Resources chairman and CEO Thomas Cooke said, "The third quarter 2013 release of our operating agreement on the Little Bay lease was the source of the non-cash impairment charge to earnings of $2.2 million recorded for the quarter."