Savoy Energy Corp. is an independent oil and gas company building a portfolio of valuable oil and gas assets in the United States. The company’s strategy is to meticulously identify abandoned oil and gas assets, which are then brought online through modern well technology involving recompletion and work-over activities.
The target market for Savoy Energy is rather large. The company is looking to extract “left-behind” oil in abandoned wells across the United States. According to the US Department of Energy, nearly 2 out of every 3 barrels of oil has been “left behind” in over 500,000 wells across the United States, amounting to a staggering 200 billion barrels of oil.
The company announced a couple weeks ago that it had finalized an agreement with Tangiers Investors LP for a $10 million equity line of credit. The financing will commence after Savoy’s company audits have been completed and within 30 days after the definitive financing documents are executed.
This financing is key to the company’s future. In order to grow and be able to obtain leases on abandoned oil properties, the company needs access to ready capital. An estimate from small cap research firm Grass Roots Research and Distribution Inc. said that the company would experience significant top-line growth – revenue of $1.1 million in 2009, rising to $8.6 million in 2013 – if the company received a capital injection of at least $2 million.
Art Bertagnolli, CEO of Savoy Energy, confirmed the importance of the financing from Tangiers Investors by stating, “We are pleased to have established this line of credit. This financing will assist our company as we move forward with our recompletion programs, as well as our plans for future growth and expansion.”
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