Savoy Energy Corp. is an independent oil and gas company seeking growth through a diversified portfolio of valuable oil and gas assets. The company recently announced it is in negotiations with Masi Corp. Holdings Ltd to finalize an oil exploration joint venture. The completed joint venture will result in the Savoy-Masi Petroleum Corp. Ltd. entity, which will license properties in Fiji for oil exploration, recompletion and work-over activities.
Savoy is approaching the Fiji market because of rising oil costs and the opportunity for company shareholders.
“In the early 80s, a lot of the big oil companies were drilling for oil in Fiji before the price per barrel dropped. As a result of their activity, a significant amount of data was accumulated, including seismic data for reefal traps and proven reserves from drilling,” Art Bertagnolli, CEO of Savoy stated in the press release. “Now with oil being above US$60 a barrel and Fiji’s proximity to China, opening up new drilling makes economic sense and will create tremendous shareholder value.”
According to The Pacific Islands Applied Geoscience Commission’s report “Fiji Petroleum Data Package,â€ more than 20 structural reefal traps lay on the seismic lines in the Late Miocene and Pliocene sequences, mostly in Bligh Water Basin. The report estimates the potential of recoverable reserves at 270 million barrels of oil (mmbo) per structure. It continued that if structural-stratigraphic trapping does occur, recoverable reserves could grow to more than 1 billion barrels of oil per structure.
This information supports the companyâ€™s move toward a joint venture to take advantage of Fijiâ€™s reserves, and correlates with Savoyâ€™s expansion strategy.
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