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Fair dinkum. The Tulainyo drill has come up with very much the same result as Dempsey. Potential reservoirs, gas shows, sandstone units as expected and as predicted. Also the Ensign 587 rig is being demobilised and a specialised rig and testing equipment will be brought to site with testing due to commence in the new year. No quick net pay and flow test at Tulainyo either then which really seems to show that everything is maybe going as planned with the Dempsey well.

Very well done anyone holding Magnum and/or Pancontinental shares (me included). A trading halt with a significant progress report due and to maintain an orderly market sounds very good news to me. Hopefully California Resources Corp (the Tulainyo operators) will release the gross/net pay and then continue on to a sensible flow test. I see SDX operating in Morocco have just drilled a well that hit gas. Initially they announced a gas discovery with 14.2 metres of net gas pay and then today, four (yes 4) days later, flow rates of 7.52 Mmscfd. That is 7,520,000 cf/d which is a very fine flow rate and makes nonsense of the Dempsey initial flow rates of 140mcfd which is 140,000cf/d. Note Sacgasco that is how it should be done. To be honest 7.52Mmcfd is the sort of rate that should have been flowing from Dempsey, especially after all the mega-ramping news releases during drilling. Instead Dempsey has turned out to be a big flop. As I've posted before I have sold all my Sacgasco shares and still have a smallish holding in EME which is now at a paper loss but I will hang on to them as I believe that EME's other prospects, particularly the offshore oil in the South China Seas, will come good. I will average down when they start to look for a farm-in/JV partner which should be relatively easy as the whole area is full of successful oil drills and I believe that EME still have 100% ownership of their blocks. I don't blame EME for the Dempsey result as they cannot override Sacgasco but the latter have made a first-rate hash of it so far and personally I see very little chance of a successful conclusion to the Dempsey drill. All just my opinion. ATB

Both Magnum and Pancontinental are in a trading halt. Of course its good news about Tulainyo. If it was bad news they would be straight out with it and there would be no need for a trading halt. Besides it is an appraisal well which means they know the gas is there. This is all about testing it and getting commercial flow rates. And the RNS says news of a "significant progress announcement". This is another reason why I am not very confident in the Dempsey flow rates because if they had so far got any significant test results Sacgasco would have had to go into a trading halt. This is though very important for the Alvares prospect as it is on trend and very similar in depths, etc.

California Resources Company operate only in California and have a m/cap of about $687M - GBP512M. They are producers so this m/cap will be based on their turnover and profits and proven reserves rather than the speculation of the smaller outfits. To be honest they are a much bigger concern that Sacgasco, who are worryingly small with their AU$22M m/cap. Looking at CRC's website it appears that the Sacramento Basin is not the most important part of their portfolio and actually accounts for only 2% of their proved reserves and where they operate from 53 active fields as of year-end 2016. The others are the San Joaquin Basin (76% and 45 producing fields), Los Angeles Basin (17% and 8 fields) and Ventura Basin (5% and 28 fields). Sorry this doesn't make very good reading from the EME/SGC perspective though probably explains why no-one has bothered to drill the lower zones of the Sacramento Basin before. The whole Sacramento Basin seems to be full of lots of very low production fields - which is rather reminiscent of what we are hearing from Dempsey so far.

Am I correct in thinking that the California Resources Company was spun out of Occidental Petroleum a few years ago.

Augustus_ Not sure who ratty means by "Oxy" but he is referring to the operators in the same way that Sacgasco are the operators of Dempsey. The operator of Tulainyo is the California Resources Production Corporation, a subsidiary of California Resources Corporation (NYSE: CRC), which is the largest oil and gas producer in California on a gross-operated basis. They are the experts in California. Sacgasco (and EME and partners) are the newbies.

The Tulainyo drill is expected to reach TD at 5600 ft (considerable shallower than Dempsey) very soon. This was an anticipated 21 day drill starting on 22cnd November so they should be at the gas zone by now as this is an appraisal drill and the gas has already been discovered. The plan is to hit the gas zone and conduct a flow test as this was not done previously. It will be interesting to see how the operators tackle the pressure, etc and whether they give any gross pay/net pay figures and whether they can get commercial flow rates from the start. Why post here some might say? For those stroppy b*ggers Alvares is on trend with Tulainyo. If Tulainyo results are good or very good it will substantially help the prospects at Alvares.

I could name lots. M/cap at 11.50p is GBP45.65M which is quite hefty for a company that is mainly in the exploration phase and has gas about to come online at a miserly rate of 140 m/cfd which as was pointed out last week at $3.40 per m/cfd is not a lot of income. About $140 per day (£110) to be precise and no upside expected for 3 or 4 months. I should imagine most PI's earn more than that. Oh and I can name one for starters - Sacgasco - who have a m/cap of about one quarter that of EME - about AUD20M or GBP11M.

Also it is very doubtful that the partnership will commit to any other drills, Alvares included, while the Dempsey testing is ongoing. So all in all a slow and thoughtful time here for one and all.

"Planning for the reservoir stimulation work is already underway with an aim to undertake the work within the first quarter of 2018". Not the first month - the first quarter - so anytime by the end of March which is reflective of the pace that Sacgasco are setting with the flow testing. Some were posting that approval would take a week and this would all be done by the end of the year. This is not so. As I said last week this will take a while - and it's actually looks like it's going to take a month or two longer than my initial prediction. Bit of a bounce today in response to the Q and A but on the whole, and unless there is news on the other prospects, the shareprice here will drop back further yet.

At some stage this will all come good because SULA have some very good assets and it will no doubt be a 5 or 10 bagger from the lows but exactly when that might happen is very much in the hands of the gods. With a few sells like the 8.7 million at 0.07p that has just gone through this may still fall back to nearer the placing price in which case I will buy some.

DShox Over 7000 million shares after the placing and subscription so it's not the £2M m/cap you posted on Friday. It's about £6M which is no longer tiny (though obviously it's maybe tiny for the assets they have but the market hasn't liked SULA for a long time now and very little value is attributed to the assets). I would have averaged down today at somewhere near the placing price but I won't buy now at 0.09p. If the SP had risen I would have been happy as I'm not that far adrift but that hasn't happened.

They've been digging out pellets of gold at up to 65g/ton in the Pilbara region recently.

I wish they had dropped the SP down to very near the placing price of 0.05p - say to 0.05p/0.055p - and I would have bought more to average down my smallish holding here. Now you don't know where you are. To buy at 0.09p is to buy at 40% over the placing price which might be a good move or it might be a very stupid move if they drop the SP over the next few days. Plus trades are sluggish to non-existent at this shareprice whereas if they had dropped it to the placing price there would have been probably a lot of buying and a very high volume.

ASX closed at the equivalent of 4.40p.

The Aussies know the value of the Pilbara region. There have been major finds there and huge increases in value for any company holding prospective licences there. Not often the ASX leads the AIM market. Peaked at AUD0.086c overnight which is about 4.8p.

They are 2 new problems admittedly but against that BOS have funding options and the current BOD's are prepared to stand down to let MT back in.

"If" this happens, "when" that happens, "If" something else happens, "when" something else happens - oh, dear, all a bit confusing. More talk going on than work I feel.

The trades are still all buys despite the MM's mismanaging the spread and showing them all as sells. I still can't see why the MM's keep edging both the buy and sell prices down.

Is this what we were waiting for in April when the SP went up to 5p??? Lots of buys today but the SP keeps edging down instead of up...............