Savoy 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."
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