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Savoy Energy Corp. (SNVP.OB) to Upgrade Rozella Kifer Well’s Technology for Increase in Efficiency and Decrease in Costs
Yesterday after the closing bell, Savoy Energy Corp. announced that in the near future the company intends to upgrade the technology at its Rozella Kifer Well. The company has ordered a Jack Shaft Reducer that will be installed on the well. The installation is anticipated to increase efficiency by 25% while decreasing maintenance by 23-35%. The new technology is also expected to extend the life of the well’s production.
The Rozella Kifer Well is positioned on 193 acres of land in Gonzales County, Texas. Savoy Energy’s lease has no expiration date as long as the company conducts operations without termination for more than 120 days. It has been estimated that oil reserves for the well are 19,730 Mbbl while the gas reserves are estimated at 3,090 MMcf.
“We are continuously keeping our eye on the bottom line. With today’s technology, we can decrease costs associated with pulling oil out of the ground while increasing profits and in turn, shareholder value,” stated Art Bertagnolli, CEO of Savoy Energy Corp.
Savoy Energy Corporation also reminded investors that its representatives and its joint venture, Savoy-Masi Petroleum Corporation Limited, recently met with The Republic of Fiji Islands Ministry of Lands and Mineral Resources’ Netani Sukanaivalu. Topics discussed included stimulating Fiji’s economy through Oil exploration licenses, recompletion, and work-over activities of previously drilled wells.
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Savoy Energy Corporation (SNVP.OB) Receives Coverage from Standard & Poor’s
Standard & Poor’s (S&P) announced this morning that it has commenced Factual Stock Report coverage on Savoy Energy Corporation. The stock report provides factual research coverage to a wide investor audience of Buy and Sell-side investors, helping them understand Savoy’s fundamentals and business prospects.
Savoy Energy Corp. focuses its business operations on performing recompletion and workover activities on wells in Texas. The company re-enters, recompletes, extracts oil from, and sells oil from previously drilled wells in the United States. Currently, it holds leases on and is producing oil from four wells: Ali-O No.1, Rozella Kifer, Zavadil No.1, and Wright, all located in the state of Texas. Savoy plans to continue its workover efforts on these wells, and desires to duplicate its efforts with other wells.
With the assistance of a petroleum consulting firm, Savoy plans to locate and evaluate a number of abandoned oil wells. In addition to its four wells, the company has also identified 18 other wells, including two that are producing and 16 that have been shut in but have seismic or other data indicating that they are viable candidates for recompletion or workover.
Currently profiling more than 1,000 issuers, S&P Factual Stock Reports increase market awareness in the investment community with insightful commentary and crucial information. Their reports are accessible on an ongoing basis to the investment community, including scores of buy-side institutions and sell-side firms that utilize S&P research and information platforms daily. Millions of independent retail investors also have access to the report via their e-brokerage accounts.
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Savoy Energy Corp. (SNVP.OB) Executes Initiative to Reduce Environmental Impact and Operating Costs
Savoy Energy Corporation announced this morning that it is converting all applicable wells to operate on electricity as a source of energy to help lower maintenance costs and increase efficiency. The company commenced the conversion initiative Monday of this week to have electricity provided to those well sites.
“Electricity is cheaper as an energy source and electric motors don’t have the same maintenance issues as gas operated engines. Our Rozella Kifer well, which will soon be fitted with a jack shaft reducer, already operates on electricity. It’s our way of contributing to the protection of the environment and we intend to continue this trend with all future wells,” commented Art Bertagnolli, CEO of Savoy Energy Corporation.
Savoy Energy Corp. recently announced that its representatives and joint venture, Savoy-Masi Petroleum Corporation Limited, met with The Republic of Fiji Islands Ministry of Lands and Mineral Resources’ Netani Sukanaivalu. Topics discussed included stimulating Fiji’s economy through Oil exploration licenses, recompletion, and work-over activities of previously drilled wells.
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Savoy Energy Corp. (SNVP.OB) Issued a ‘BUY’ Rating from Grass Roots Research
Savoy Energy Corp. is a domestic, independent oil and gas company building a portfolio of oil and gas properties. Savoy Energy currently holds leases on and has oil production from four wells. Eighteen other wells (2 producing, 16 abandoned) have already been identified by the company’s meticulous evaluation process as favorable targets for recompletion or work-over activities. The company expects to acquire these properties within the next 12 months.
Nearly two out of every three barrels of oil discovered in the United States remain trapped underground after conventional recovery operations. As per the US Department of Energy, this amount of oil comes to a staggering 200 billion barrels. Savoy Energy is focusing its efforts on this huge base of trapped oil.
A new research report has been issued on Savoy Energy by Grass Roots Research, Wall Street’s number one small cap research firm. The report gave Savoy Energy a ‘BUY’ recommendation and a $2.92 long term price target. Its current price is around $0.40.
The research report projects oil and gas revenues for Savoy Energy of approximately $1.1 million in 2009, with oil production of about 23,000 barrels from 4 wells. By 2013, Grass Roots Research projects oil production of nearly 115,000 barrels of oil from 24 wells which will produce revenues of approximately $9.6 million.
The Grass Roots Research report stated the following, “We expect the company to be cost efficient and margins to be healthy. We expect gross margins to improve from 54.7% in 2009 to 58.2% in 2013. Net margins are attractive.” The report also projects funding requirements of only approximately $2 million between 2009 and 2010.
In conclusion, Grass Roots Research stated, “We believe Savoy is on a fast paced growth trajectory as the demand for oil increases. The company is in the right place at the right time. We believe Savoy is a lucrative opportunity for risk adverse investors.”
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Savoy Energy Corp. (SNVP.OB) Brings Old Sources Back Online
Savoy Energy Corporation, an independent oil and gas company based in Texas, specializes in what is called “recompletion” and “workover” activities. What this means is that the company is very good at identifying and acquiring abandoned oil and gas wells that still have a lot to give, and bringing them back into production using advanced processing technologies and careful management. Savoy is known for its ability to economically extract significant remaining product from abandoned wells.
Savoy is already producing oil from four wells, and has identified 18 other U.S. wells that are favorable candidates for turnaround. In addition, the company recently announced plans to create a joint venture in the South Pacific island of Fiji to license properties there for oil exploration and drilling.
As long term fossil fuel prices continue to rise, the demand for more production from previously producing wells is expected to increase. According to the U.S. Department of Energy, fossil fuels, which include coal, oil, and natural gas, still make up more than 85% of all energy consumed in the U.S., with oil accounting for 40% of energy use.
New technology now allows up to 50% of oil in wells to be drained before the well is capped, considerably more than old technologies. Many wells in the Los Angeles area were shut down after only 25% or less of the oil being extracted. These old fields are now being tapped, with other previously ignored wells now being re-evaluated. Wells that are up to 45 years old are being brought back online.
Savoy is very careful in evaluating wells before considering investment, and aggressively applies modern well technology and management controls. All this significantly reduces initial drilling costs and risks associated with traditional oil and gas projects. This helps ensure a much more stable financial outlook for the company and its investors.
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Savoy Energy Corp. (SNVP.OB) Announces $10 Million in Funding
Savoy Energy Corporation announced this morning that it has finalized an agreement with Tangiers Investors, LP for a $10 Million equity line of credit.
“We are pleased to have established this line of credit. This financing will assist our company as we move forward with our recompletion programs, as well as our plans for future growth and expansion,” commented Art Bertagnolli, CEO of Savoy Energy Corporation.
According to the press release, the financing will initiate after the company’s audits have been completed and within 30 days after the definitive financing documents have been executed.
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Savoy Energy Corp. (SNVP.OB) Finds a Profitable Niche in the Oil Industry
Savoy Energy Corp. currently performs recompletion and workover activities on wells in Texas. The company identifies and acquires abandoned oil and gas assets and brings them back into production using effective, low-cost methods.
The company is focused on recovering oil in wells that has been “left behind.” There are many such oil fields all over the United States which have been closed with oil trapped inside as it was uneconomical to extract further oil from the well at the time. Such activities should be profitable for Savoy Energy, a company with low overhead, an efficient cost structure and effective technologies to extract the oil.
Oil that has been left behind represents a large opportunity for Savoy Energy. Nearly two out of every three barrels of oil discovered in the United States remains trapped underground after conventional recovery operations. According to the US Department of Energy, there are approximately 200 billion barrels of oil still trapped underground – a truly staggering amount.
The company already holds leases on and is producing oil from four wells. Savoy is looking for more opportunities across the US and has identified another 18 wells that the company believes are favorable candidates for recompletion or work-over activities. With the price of oil regaining strength, Savoy Energy is in the right place at the right time.
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Savoy Energy Corp. (SNVP.OB) Sees Increasing Returns, Reduced Costs
Savoy Energy Corp., an independent oil and gas company specializing in the turnaround of abandoned wells, is in a rather unique position within the industry. While many oil and gas companies depend upon searching for and discovering new wells, still a largely speculative process in spite of all the technologies now being applied, Savoy goes after existing wells. These are wells that still have oil, but which were abandoned earlier because previously available technologies and processes were simply not able to economically extract the remaining stock. Using innovative approaches, Savoy is able to tap into those remaining resources, bringing the wells back online.
Savoy is currently producing oil from four wells, with another 18 being evaluated. This is expected to increase significantly over the next few years. However, the company is very careful in identifying and evaluating well candidates, a move that greatly reduces the risks for the company and its investors.
Most people are unaware that nearly two thirds of all the oil discovered in the U.S., a whopping 200 billion barrels, remains trapped underground after conventional recovery operations. Many old wells in the Los Angeles area, for example, were originally shut down after less than ¼ of the oil was taken out. There are an estimated ½ million wells containing residual oil. Large oil companies, with high overhead, are quick to turn their back on low producing wells. Savoy’s low overhead allows profitability at very low production rates. In addition, the company continues to increase efficiency.
This unique approach, coupled with an anticipated rise in oil and gas prices as the economy recovers, paint a bright future for Savoy. It is expected that the company will go from 4 wells to 24 operating wells by 2013, producing over 100,000 barrels and generating projected revenues of $9.6 million. Gross margins, already at 54.7%, are expected to reach over 58% by 2013, with net margins remaining attractive.
The key factors supporting Savoy’s prospects are:
• Ability to economically extract leftover oil
• Increasing oil and gas prices
• Small overhead costs compared to other companies and other approaches
• Continued push for U.S. oil independence
• Strong industry contacts
• Overall advanced technologies and managerial experience
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Savoy Energy Corp. (SNVP.OB) Receives $10 Million in Funding
Savoy Energy Corp. is an independent oil and gas company building a portfolio of valuable oil and gas assets in the United States. The company’s strategy is to meticulously identify abandoned oil and gas assets, which are then brought online through modern well technology involving recompletion and work-over activities.
The target market for Savoy Energy is rather large. The company is looking to extract “left-behind” oil in abandoned wells across the United States. According to the US Department of Energy, nearly 2 out of every 3 barrels of oil has been “left behind” in over 500,000 wells across the United States, amounting to a staggering 200 billion barrels of oil.
The company announced a couple weeks ago that it had finalized an agreement with Tangiers Investors LP for a $10 million equity line of credit. The financing will commence after Savoy’s company audits have been completed and within 30 days after the definitive financing documents are executed.
This financing is key to the company’s future. In order to grow and be able to obtain leases on abandoned oil properties, the company needs access to ready capital. An estimate from small cap research firm Grass Roots Research and Distribution Inc. said that the company would experience significant top-line growth – revenue of $1.1 million in 2009, rising to $8.6 million in 2013 – if the company received a capital injection of at least $2 million.
Art Bertagnolli, CEO of Savoy Energy, confirmed the importance of the financing from Tangiers Investors by stating, “We are pleased to have established this line of credit. This financing will assist our company as we move forward with our recompletion programs, as well as our plans for future growth and expansion.”
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Savoy Energy Corp. (SNVP.OB) Finds Profit in its Ability to React in Any Condition
Given the current state of the energy markets, being a large company is not necessarily a good thing. Flexibility is a distinct advantage. Mid and larger energy companies tend to focus on larger properties where capital costs can be extreme, limiting the ability to adapt to changing conditions. As the book says, “small is beautiful.” In a variable market, a company that can adapt quickly is one that will be profitable.
Savoy Energy Corp., an oil and gas extraction company, works to extract and sell oil and gas primarily in the United States. The company recently signed agreements to explore for oil in Fiji.
Although the company is open to all potential properties, it is currently extracting and re-working existing wells in Gonzales, Texas. The company appears to be extremely structured in its operations with a particular focus on cost controls. Generally speaking, the company works with existing technology to bring closed wells back on-line. This process, and the way that the company approaches each well, allows it to keep costs low and cash flow moving in a positive direction. For the most part, the company has been working with smaller tracts of land, ranging in size from 82 acres to 485 acres. It also appears that the company is fairly choosy in the parcels it acquires, purchasing only those tracts it feels it can quickly and easily bring back on-line in short order.
The current state of the oil and gas markets dictates the need for flexibility and the ability to react to quickly changing conditions. In this sense, Savoy Energy is uniquely positioned. As the price of oil and gas move in an uncertain environment, the company is better positioned to react with less exposure if conditions worsen or improve. As companies in all sectors have found out, this is a particular advantage and one that can dictate success or failure. Savoy Energy Corp. has a very prudent and experienced team in place and appears to have found a plan that should keep it moving forward for some time to come regardless of conditions.
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