Saratoga Resources, Inc. Enters Into Financial Advisory Agreement With SMH Capital,...

Saratoga Resources, Inc. Enters Into Financial Advisory Agreement With SMH Capital, Inc.

AUSTIN, Texas--(Business Wire)--Saratoga Resources, Inc. (OTCBB: SROE) (the "Company"), announced
today that it has entered into a financial advisory agreement with SMH
Capital, Inc. to provide financial advisory services to the Company
relating to its previously announced and currently pending
acquisitions of Harvest Oil & Gas, LLC and The Harvest Group, LLC.

Thomas Cooke, Chairman and CEO of Saratoga, stated, "We are
excited to have SMH Capital on board as we move forward with our
acquisition strategy. With the addition of SMH Capital, a leader in
energy investment banking, and our previously announced agreements to
acquire Harvest Oil & Gas and The Harvest Group, with combined proved
reserves of 77 bcfe with an estimated PV10 value of $327 million, we
believe we are well positioned to establish Saratoga as a leading
independent operator and partner in acquisition, development and
exploration of energy resources in the South Louisiana and Gulf of
Mexico areas."

About Saratoga Resources, Inc.

Saratoga Resources, Inc. is an energy development company directed
by a team of experienced industry professionals. Saratoga's focus is
on the acquisition, development and exploration of energy resources
while maintaining efficient operations and high environmental
standards.

Further information about Saratoga Resources is available via
their website at www.saratogaresources.net.

About SMH Capital, Inc.

SMH Capital is a registered broker-dealer and a subsidiary of
Sanders Morris Harris Group (NASDAQ:SMHG) (member FINRA/SIPC).

Sanders Morris Harris Group is a financial services holding
company headquartered in Houston that manages approximately $15.8
billion in client assets. The subsidiaries and affiliates of Sanders
Morris Harris Group deliver superior wealth advisory, asset
management, and capital markets services to individual and
institutional investors and middle-market companies. Its operating
entities are Edelman Financial Center, Salient Partners, Salient Trust
Co. LTA, SMH Capital, SMH Capital Advisors, and Select Sports Group.
Sanders Morris Harris Group has over 600 employees in 21 states.
Additional information is available at www.smhgroup.com

SMH Capital Investment Banking (www.smhib.com) is headquartered in
New York with regional offices in Los Angeles and Houston. The firm is
a full-service investment bank providing middle-market companies with
private placements and public offerings of equity and debt securities,
as well as financial-advisory services in connection with mergers and
acquisitions, restructuring and recapitalizations.

SMH Capital Markets provides corporate and investment banking
services to affluent private investors, institutions, and
middle-market corporations. SMH Capital Markets offers a full range of
services including: private placements and public offerings of equity
and debt securities, financial advisory services, institutional equity
sales, trading, and research, as well as prime brokerage services for
hedge funds and fixed income securities sales and trading. For more
information, go to www.smhib.com.

This press release may contain "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such statements include,
but are not limited to, any statements relating to our ability to
consummate any acquisition or other business combination and any other
statements that are not historical facts. These statements are based
on management's current expectations, but actual results may differ
materially due to various factors, including, but not limited to, our
limited operations and resources, our dependence on key personnel some
of whom may join us following the proposed acquisitions, our
potentially being unable to obtain additional financing to complete
the acquisitions of Harvest Oil & Gas and/or The Harvest Group and/or
other targets, the ownership of our securities being concentrated,
risks associated with the oil and gas industry and those other risks
and uncertainties detailed in the Company's filings with the
Securities and Exchange Commission, all of which are available free of
charge on the SEC's web site at www.sec.gov. We expressly
disclaim any intent or obligation to update any forward-looking
statements.

Saratoga Resources, Inc.
Thomas F. Cooke, 512-445-2301

Copyright Business Wire 2007