HOUSTON, May 20, 2010 (GLOBE NEWSWIRE) -- Savoy Energy Corporation (OTCBB:SNVP), an independent oil and gas company, announced today that it has entered into a lease for a 144 acre property in Gonzales County, Gonzales, Texas. The leased property includes proven non-producing reserves in the Austin Chalk formation. The Company believes that there may be production potential in the Eagle Ford Shale, which is a part of the leased property.
The leased property contains one non-operating well with an estimated production output of 20 to 25 barrels of oil per day. The Company believes that re-entry of that well could be completed in six months or less. Under the terms of the lease agreement Savoy Energy has a 75% working interest of any production realized from the leased property.
This lease is the first of several properties the Company has identified as potential future prospects that the Company believes will increase its holdings, production and revenue.
Arthur Bertagnolli, CEO Savoy Energy Corporation, stated, "This lease allows us to move forward with our plans to develop the Eagle Ford Shale. Although the Eagle Ford is the driving play in our future development, any possible recovery from the Austin Chalk or other formations could be an added benefit."
About Savoy Energy Corporation
Savoy Energy Corporation (OTCBB:SNVP) is an independent oil and gas company building a diversified portfolio of valuable oil and gas assets in the United States. The company is focused on identifying abandoned oil and gas assets, which are then brought online through recompletion and work-over activities, a meticulous process of evaluation, application of modern well technology, and stringent management controls. This process allows the company to increase its asset base and cash flow, while significantly reducing the cost of initial drilling, and takes away the risk of traditional exploration projects. Savoy Energy's financial structure allows it to minimize the high overhead of traditional E&P companies. For more information visit the Company's web site at: www.savoyenergycorporation.com
Forward-Looking Statement
The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from acquisitions or actions in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also 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. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties, and factors include, but are not limited to, future capital needs, changes, and delays in product development plans and schedules, or market acceptance.