Savoy Energy Corporation, an independent oil and gas company based in Texas, specializes in what is called â€œrecompletionâ€ and â€œworkoverâ€ 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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