The company believes that there may be production potential in the Eagle Ford Shale, which is a part of the leased property. The property contains one non-operating well with an estimated production output of 20 to 25 barrels of oil per day.

Savoy Energy also believes that re-entry of that well could be completed in six months or less. Under the terms of the lease agreement, the company has a 75% working interest of any production realized from the leased property.

This lease is said to be the first of several properties the company has identified as potential future prospects that it believes will increase its holdings, production and revenue.

Arthur Bertagnolli, CEO of Savoy Energy, said: “This lease allows us to move forward with our plans to develop the Eagle Ford Shale. Although the Eagle Ford is the driving play in our future development, any possible recovery from the Austin Chalk or other formations could be an added benefit.”