Sacgasco to commence drilling of Dempsey natural gas well in California

SUBIACO, Australia -- Sacramento basin-focused natural gas developer and producer, Sacgasco Limited has advised that it plans to commence drilling of the Company’s 1+ Tcf Dempsey 1-15 well in the Sacramento basin in California on Aug. 1, 2017.

The Dempsey natural gas well is planned to be drilled in three discrete sections to depths of approximately 600 m, 2,000 m and 3,200 m associated with decreasing planned casing sizes. The well has been designed conservatively to provide flexibility to respond to well bore conditions and progressive results. Sacgasco interprets seven target gas reservoir levels. Individual, unrisked Deterministic Prospective Resources for the primary targets range from 116 Bcf to 352 Bcf of recoverable gas. Should all the stacked reservoirs be full of gas, the cumulative unrisked recoverable Prospective Resources within the prospect could exceed 1 Tcf.

The primary targets are interpreted in a series of Cretaceous sandstone reservoirs that exhibit structurally consistent amplitude anomalies similar to those that are observed on seismic elsewhere in the basin, where conventional sandstone reservoirs have trapped natural gas in mapped structural closures, e.g. Tulainyo / James and Alvares wells.

The Company expects to intersect gas shows in a number of zones in the well and these will be assessed based on the information available, but quantitative results will need to await conventional logging after drilling each section of the well and may need flow testing to be definitive.