Sacgasco makes significant natural gas discovery
Sacramento Basin-focused natural gas developer and producer, Sacgasco Limited (ASX:SGC), this morning announced that drilling at the Dempsey 1-15 Natural Gas Well in California’s Sacramento Basin had intersected its most significant gas shows to date.
Sacgasco advised that the Dempsey 1-15 well is drilling ahead in 8 1/2” vertical hole and drilled through hard siltstone/shale section into a primary gas bearing sand.
After penetrating a thick section of hard shales and siltstones, drilling intersected the potential sandstone reservoir with high gas shows. These have occurred even though the drilling mud weight has been increased to control the levels of background gas for safe drilling.
The Dempsey 1-15 well is currently drilling ahead below 2,760 metres to the highly under-explored deeper conventional sandstone reservoir targets in the approximately 440 metres of remaining section to be drilled.
Dempsey is drilling the largest undrilled mapped structural closure in the north-eastern part of the prolific Sacramento Gas Basin. It is interpreted to be optimally located to trap gas migrating out of gas generating areas to its west and south.
Managing Director, Gary Jeffery, commented on the discovery:
“As previously observed it continues to be very encouraging that since drilling out of the 9 5/8” casing, all potential reservoir zones interpreted from mud logs have been associated with significant gas shows. The latest shows are interpreted to be the most significant we have seen to date. We continue to be very pleased with the execution of the drilling and the additional gas shows seen in the Dempsey well.”
Drilling at the Dempsey 1-15 well commenced on August 2 and the well has already returned some significant gas shows, even before today’s announcement.
Management confirmed that further interpreted prospective reservoir zones remain to be drilled and that updates of any meaningful results from the evaluation of the target sandstone reservoirs will be provided.
SGC has rewarded shareholders with an impressive 221% share price rise over the past twelve months as it continues to make progress at Dempsey and at its other Sacramento Basin gas prospect, Alvares.
Historical data in terms of earnings performance and/or share trading patterns shouldn’t be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
News of the gas discovery this morning follows an announcement from the company yesterday detailing a A$2.4 million capital raising.
SGC announced that it has placed 28,744,080 ordinary shares at 8.5 cents per share to raise A$2,443,247 before costs, under the Company’s existing share placement capacity.
SGC has placed 28,744,080 ordinary shares at 8.5 cents per share to raise A$2,443,247 before costs, under its existing share placement capacity. The capital raising was strongly supported by existing and new shareholders in London and in Australia. Who are attracted by the potential for the company’s Scramento Basin assets.
The funds will be used to finish the Dempsey well including drilling, completion for testing and production hook-up, as well as hooking up existing wells for more production, permitting the Alvares Prospect well re-entry, ongoing and new oil and gas lease rentals, plus general working capital requirements.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.