However, they are waiting for the one ‘big one’ which means that exploration success at Borba should be a prominent catalyst. Sacgasco’s management team has already demonstrated their ability to identify high-quality targets, bringing them into production at commercially viable costs. The near term strategy is to drill the Borba 1-7 well that will test multiple stacked 3D seismic anomalies in the interval from 3,200 ft (975m) 9,500 ft (2,800m) depth and finish in basement rocks. The size of the prospects in California have the potential to supply both domestic Californian natural gas and export LNG markets, including those in Asia.įrom a broader perspective, Sacgasco’s strategy is to find, acquire and develop undervalued and under-developed opportunities connected to materially under-supplied oil and gas markets across the world. Sacgasco is targeting gas supply to the local Californian gas market and the burgeoning LNG market in North America. Prior to news of the current acquisition, Sacgasco Limited ( ASX:SGC) already had an extensive portfolio of natural gas producing wells and prospects at both exploration and appraisal stages, including multi-trillion cubic feet (tcf) opportunities. SGC looks to make its mark in North American gas Red Earth is currently producing over 1000 Barrels of Sweet Light (39o API) oil per day (~300 BOPD net to SGC working interest), and will provide SGC with near term revenue.Īlong with Red Earth, SGC has numerous share price catalysts on the horizon as drilling at Borba commences and results from 11 layers of interpreted hydrocarbons come to hand.īefore we look at the coming drilling program at Borba and the Red Earth acquisition, let’s take a more detailed look at SGC. It consists of extensive long-life oil and gas leases (covering a net area of 123,000 acres), oil wells and extensive associated production facilities and oil flow lines, accommodation, produced water disposal facilities and wells and access roads.Īdditional revenues are received from third parties who use some of the Red earth infrastructure. This asset consists of 6 oilfields and associated infrastructure and is located 450km north of Edmonton. SGC will gain a 30% working interest in the oil producing Red Earth asset in northern Alberta, Canada.
Neither is its Red earth acquisition, which the company announced on Friday last week, that should produce its own catalysts. SGC’s management team has a proven record of identifying new wells, bringing them into production and managing sustained output.īorba is no exception. Sacgasco has recently completed construction of a drill pad at Borba in readiness for the drilling of the Borba 1-7 well that is due to commence before year-end. The interception of good reservoirs during drilling is expected to lead to further opportunities in a new play fairway in this area. SGC will drill its Borba 1-7 well in the Sacramento Basin.ĭrilling will test multiple stacked 3D seismic anomalies in the interval from 3,200 ft (975m) 9,500 ft (2,800m) depth and finish in basement rocks.
Natural gas in California continues to realise premium prices, which are currently close to US$4.00 per mcf with the cold of winter still to come to support and boost gas and oil prices. There is an unsatiated 7 BCF/day gas market in California which imports over 90% of its natural gas from Canada and other US states. The company is targeting gas supply to the premium local Californian gas market and the burgeoning LNG market in North America. Sacgasco Ltd ( ASX:SGC) is an Australian-based energy company, focused on conventional gas exploration and production in the Sacramento Basin, onshore California – a proven gas basin for low-cost, high return wells.