HOUSTON, June 3, 2010 (GLOBE NEWSWIRE) -- Savoy Energy Corporation (OTCBB:SNVP), an independent oil and gas company, announced today that it has entered into a Letter Of Intent with a privately owned oil and gas company to acquire a producing oil field located in an approximate 500-acre tract.
The Letter Of Intent is subject to completion of due diligence and the execution of a final Sale and Purchase Agreement. Under the Agreement, Savoy will have an 80% Net Revenue Interest in the field. The field currently has no less than 34 existing well bores that the Company believes are capable of production with 7 of those wells currently in production.
Savoy is advised that current production is logged at 60/70 BOPD and is being produced from three of five known field formations. The reports from engineers and geologists employed by a previous operator show that the geology of the field was well defined through the drilling, logging and coring of wells in the area. An existing reserve report projects that 1.3 to 1.6 million bbls of oil may be recoverable from the field.
Arthur Bertagnolli, CEO of Savoy Energy Corporation, stated, "The acquisition of this interest is consistent with our strategy of identifying and acquiring underdeveloped oil and gas interests. We believe that the remaining wells that can be returned to production at a favorable well intervention cost have the potential of achieving a production goal of 100 BOPD from the field."
About Savoy Energy Corporation
Savoy Energy Corporation (OTCBB:SNVP) is an independent oil and gas company whose strategy is to build a diversified portfolio of 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 re-completion and work-over activities. The company seeks to accomplish this through a process of evaluations and applications of modern well technologies and effective management controls. The company seeks to increase its asset base and cash flow, while significantly reducing the cost of initial drilling. By following this process, the company seeks to minimize the risk of traditional exploration projects and while limiting corporate overhead. 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.