Sacgasco Ltd has signed a farm-out agreement with Empyrean Energy plc (EME) for the natural gas Dempsey Prospect and other Sacramento Basin assets, onshore California. As a result of this farm-out, Sacgasco now has the necessary funding commitments to drill the Dempsey Prospect.
The company plans to commence a 3200 m combined appraisal and exploration well (Dempsey-1) in the next 60 days to evaluate this world class prospect.
Sacgasco interprets 7 target gas reservoir levels. Individual, unrisked Deterministic Prospective Resources for the primary targets range from 116 billion ft3 to 352 billion ft3 of recoverable gas. Should all stacked reservoirs be full of gas, the cumulative unrisked recoverable Prospective Resources within the prospect could exceed 1 Tcf.
Sacgasco’s Managing Director, Gary Jeffery, commented: “Sacgasco welcomes Empyrean to the joint venture. EME becomes the latest company to farm-in to Sacgasco’s multi-Tcf prospect portfolio with multi-well options to unlock the huge gas potential of the North Sacramento Basin.”
“Empyrean have a highly successful track record of exploring in the USA and rewarding their shareholders with positive exploration and development outcomes. Their extensive experience will be highly complementary to the Sacgasco joint venture, and based on our dealings with them to date, we believe the EME team will be a great fit as we look forward to unlocking the true potential of the Sacramento Basin.”
“The recent farm-outs provide Sacgasco with the financial capacity to move forward with the drilling of Dempsey. Detailed planning for spud is now well underway.”
“Based on current agreements, Sacgasco will fund around 28% of the Dempsey well costs while retaining a 55% Working Interest which is within Sacgasco’s funding capability. Our extensive portfolio of Sacramento Basin Assets continues to attract interest from other companies and additional farm-outs are currently under consideration.”
“Sacgasco is committed to building a world-class natural gas business in the energy-hungry Californian market, and we look forward to providing our shareholders with further updates as we realize this exciting phase in the Company’s development.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/16052017/sacgasco-signs-farm-out-agreement/
You might also like
New episode of the Palladian Energy Podcast: Championing ESG in the energy sector, with DNV.