Sacgasco Limited has confirmed that it has taken a key step in unlocking the value of its conventional natural gas opportunities by farming out a working interest in its operated onshore California Area of Mutual Interest (the 'AMI') to private company Bombora Natural Energy Pty Ltd (BNE). BNE will fund additional oil and gas leases over highly prospective structures in the Northern Sacramento Basin.
BNE will earn a 20% Working Interest (WI) in up to nine (9) natural gas prospects that have already been mapped in the AMI by providing staged funding of up to AUS$400 000.
14% of the interest will be provided by Sacgasco, with the remaining 6% interest provide by AMI partner Xstate Resources Limited.Funding will be provided in two stages to reflect acreage acquisition, and progress announcements will be made after material leases have been secured. Initial funding of AUS$200 000 will focus on 3 Prospects in which Bombora will earn 20%.
Bombora will have the options to fund a further US$200 000 of leasing to earn a 20% interest in an additional 6 prospects.
The 9 mapped AMI prospects are large undrilled anticlines with prospective conventional sandstone reservoirs of the same age as the ready-to-drill Dempsey Prospect and Alvares Gas Discovery Appraisal Project (with a combined total 3.4 TCF* best estimate recoverable Prospective Resource), in which Sacgasco holds respective 55% and 40% interests.
Over the last three years Sacgasco has licenced and selectively reprocessed over 1000 miles of regional and prospect oriented 2D seismic data. SGC’s Technical Director Keith Martens has integrated the wireline log, mud log, core and drill stem testing and production information from over 1000 key wells in the Northern Sacramento Basin.
Interpretation of this primary data, and integration of published technical papers on structural development, source, seals, reservoir outcrop information and depositional environments, has revealed a plethora of opportunities in the AMI.
Dempsey Prospect and Alvares-Gas-Discovery Appraisal Project
Separately, Sacgasco was responsible for identifying and mapping the Dempsey Prospect (SGC– WI55%), based on a 2D and 3D seismic data, and recognising the ‘left behind’ TCF-scale potential of the 1982 Alvares gas discovery (SGC – WI 40%), based on a key well and reprocessed 2D seismic.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/15082016/sacramento-basin-farmout-confirms-ami-value/