In the current oil and gas market, where price of the commodities have risen and fallen so fast, other definitive advantages are more important. The roller-coaster ride upward on prices may not be the free ride that so many companies used in the past 2 years to justify acquisitions. The Company has several distinct competitive advantages in the industry. These areas are size, experience, and contacts. These competitive advantages are brought to the company in the form of it's technical and management personnel, and the short-term focus established by management under current market conditions.

 

Being a small company looking for small abandoned properties for acquisitions is a distinct and financial advantage in the oil and gas industries today. Larger companies, and most mid-size companies, are searching for large acquisitions and new drilling to make a successful increase in the size of company. However, large acquisitions are expensive and the cost of drilling can drag out the return on investment; additionally, large plays are difficult to locate, leading most companies to look outside the US.

 

Experience and knowledge of the oil business are the most important factors in the location of the right abandoned properties for acquisitions. Shareholder value is increased when the right properties are acquired, the cost of bringing the wells back on line is reduced, and oil begins to flow. Additional improvements in production are possible with talent and expertise to evaluate the needs correctly.  Having the ability to implement the work over programs is crucial for success; Savoy Energy has that expertise to succeed.