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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