Houston-based Savoy Energy Corp. said it has completed a 300-acre lease acquisition in Central Texas within the "oil window" of the Eagle Ford Shale formation.
The deal was made on the behalf of an undisclosed privately held oil and gas company as part of a joint effort with Savoy to perform geological studies and development for potential oil production.
Savoy said that by utilizing the expertise of its contracted land department and geological firm, it was able to effectively leverage its position to facilitate the execution of this lease and place other acreage tracts under contract. This joint effort unveils Savoy's strategy to potentially gain 10% revenue interest when the properties are developed and producing oil.
As an independent oil and gas producer, Savoy is focused on identifying abandoned oil and gas assets, which are then brought online through recompletion and workover activities. The company said it seeks to accomplish this through a process of evaluations and applications of modern well technologies and effective management controls.
Savoy CEO Arthur B. Bertagnolli said it plans to continue to identify futures leasing and development opportunities in the Eagle Ford Shale.
More liquid plays such as the Eagle Ford have been garnering more attention over the last few months as natural gas prices remain relatively low compared to crude or natural gas liquids prices.
During the 3Q2010 reporting period, much of the E&P industry -- Anadarko, Devon, Comstock, Encana, Petrohawk and Pioneer, to name a few -- said they planned to chase the higher prices of the liquids-rich plays until dry gas prices rebound (see Shale Daily, Nov. 8; Nov. 4; Nov. 3; Oct. 21; Oct. 20; Oct. 7). In late October Range Resources Corp. put its Barnett Shale properties on the block and announced plans to focus on its "liquids-rich plays" in the Marcellus Shale (see Shale Daily, Oct. 29).