Savoy Energy Corporation, the Texas-based oil and gas company focused on bringing old well sites back to life, is actively working the Texas Cretaceous Trend, the largest single pool field in Texas. The company has a special interest in the Eagleford Shale Formation, which has a history of long-producing wells, and holds a number of properties in the Gonzales County area of southern Texas. Savoy feels it can pull from 5,000 to as much as 140,000 barrels from a single vertical well.
In response to investor inquiries, Savoy has addressed the most frequently asked questions regarding their plans for Eagleford.
â€¢ Will the production be oil or gas?
In most cases, production will be oil, primarily above the 11,000 foot level.
â€¢ What is oil quality in the area?
Oil quality in Savoyâ€™s area of interest varies from heavy to very desirable high-gravity crude.
â€¢ How much oil can be recovered from the initial target area?
Hundreds of millions of barrels are in place. Identifying the â€œsweet spotsâ€ for exploitation is key in determining what can actually be recovered. Savoy plans to start in areas of known tests or where high-quality oil shows.
â€¢ How much production can be expected from a good horizontal well at Eagleford?
Based upon the production profile of the best vertical Eagleford well, 300-400 BOPD (barrels of oil per day) can be expected, and possibly above 75 BOPD for an extended period of 5-8 years. A dual lateral well in the basal Eagleford may well recover 400,000 barrels of oil. The idea is to explore with vertical and exploit with horizontal. The sweet spots can be identified with vertical wells before taking on the higher costs associated with horizontal wells.
â€¢ Why are Savoyâ€™s properties in Gonzales County considered prime for tapping the Eagleford?
The Savoy/Louis Zavadil #1 actually flowed 35 BOPD on test from the Eagleford back in 1978 before being plugged in search of higher deliverability. The well is also in close proximity to an Eagleford well that produced 142 MBO as a vertical completion.
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