Saratoga Resources, Inc. has received independent, third-party audited reserve estimates on two of its shallow Gulf of Mexico leases, awarded earlier this year. Saratoga contracted with DeGolyer and MacNaughton to provide independent, third-party reserve estimates on its recently acquired shallow Gulf of Mexico properties. Estimates of reserves were prepared in compliance with the regulations promulgated by the SEC and future prices were estimated using guidelines established by the SEC and FASB.
Combined proved undeveloped reserves for the Moneypenny Prospect in Ship Shoal Block 78 and the Thunderball Prospect in Vermilion Block 153 totals 2.74 million barrels of oil equivalent ('MMBOE'), 46% of which is oil, with estimated present worth values using a discount rate of 10 percent ('PV10') of $37.2 million. These reserves are supplemental to the existing proved reserves associated with the Company's state and parish leases.