Saratoga Resources, Inc. (SROEQ.OB) to Exit from Bankruptcy by Year-End

By IBTimes Staff Reporter | December 03 2009 5:27 AM

Saratoga Resources Inc. is an independent oil and gas exploration and production company whose principal holdings cover 34,246 net acres located in the state waters offshore Louisiana. The company focuses on three points: increasing production through low cost workovers and recompletions, decreasing operating costs, and increasing reserves through field studies and development.

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The company’s main producing asset is the Green Bay Field which was first discovered in 1938. Saratoga has a 100% interest in most of the 100+ producing wells in the field. The company’s other major asset is the Vermilion 16 gas field. Its other principal fields are situated in the Main Pass/Breton Sound area, along with 85 miles of pipeline.

Saratoga today announced confirmation of its ’second amended plan of reorganization’ and its anticipated exit from Chapter 11 bankruptcy, just nine months after its bankruptcy filing. The company and its subsidiaries have reached an agreement in principle with their secured lenders regarding a financial restructuring. That agreement was incorporated into the second amended plan of reorganization, which was filed on November 25, 2009.

That specific plan was confirmed by Judge Robert Summerhays of the Western District of Louisiana on December 2, 2009. This plan sets the stage for Saratoga to exit from Chapter 11 with payment in full for all its creditors and preservation of the interests of all equity holders. This was an excellent result for all the parties involved, particularly for this result to have happened in such a short period of time.