PYX Resources: Achieving volume and diversification milestones. Watch the video here.
Please note re : frack permit observations this is my understanding from previous announcements/research NOT from info. in this RNS. Please DYOR.
With this welcome SGC RNS it appears the worm has turned. The well work over programme has proceeded to plan with a further 50 % production expected before end Q1 by which time the frac permit is anticipated to have been granted and vertical fracking commencing / having commenced. It is reassuring to note the JV partners are working well together. John Begg is a proven, experienced Oil & Gas professional with a great track record. Might even buy a few more SGC tonight to add to the EME being bought this morning
Very informative posts from jophda and jamieparklondon As I have indicated I have not been involved in oil exploration for over 30 years . Over that time there has been huge advances in fracking technology. While the principles of the process .To open up natural fractures and create new fractures by applying pressure to the formation and keep the fractures open after the pressure is removed by pumping proppant into the fractures , so opening up a greatly increased area of the reservoir to flow hydro carbons into the well bore have not changed , the actual practice , the formulations used and the size of fraccs have greatly improved the results of fracking and revolutionised the process . Horizontal drilling and fracking in very low permeability and low porosity formations has been the main driver of the resurgence in the US oil production in recent years . These formations do not flow hydrocarbons at commercial rates when conventional vertical non fracked wells are used . The sands tested so far in Dempsey have produced sub commercial flows .Fracking would be expected to increase the flow rate by multiples . Just how successful the fracc is depends on the nature of the sands , whether they are continuous horizontally or are lenses within impervious formation and if the fraccs extend into regions of higher permeability and of course the size and design of the fracc . I am sure SGC is being advised by experts .( I am most definitely not !! ) It is a case of fracc it and see. I have no idea about how long it will take to get the approvals and when the fracc will occur . Things are moving slowly but as none of the JV partners have deep pockets and they seem to be going about things as economically as they can .They have spent a lot of time , but much of it has not been rig time .This is still not a very expensive well . We do know they have found a very large amount of high pressure , dry , pipeline quality gas . It has yet to be proven that it can be stimulated to flow in commercial quantities in this well but the indications are very positive . It also gives invaluable information for drilling future wells on the structure , which could involve horizontal laterals .They are looking at these things now and will know a lot more after the fracc about how to go about future wells on the structure . They have higher zones to test and as a final result if all the lower zones do prove to be non commercial in this vertical well , they have the proven commercial shallow gas field to complete in . They have stated several times that would pay for the well if all else fails . A big plus for this well is the proximity of production infrastructure . The gas does not need to be treated before entering the pipeline system through the onsite meter station . Cash flow will start soon after a commercial flow rate has been established . It seems to me that this well has very little chance of being plugged and aba
The approvals process can take up to three months by the look of the extant applications on the Dept of Conservations website. Some go back to September. Most of the active applications are for the South Belridge field in the south of the state where the majors are operating (Exxon?). The reason you don't see the applications for Dempsey is because the operator has requested a confidential listing, that is the application for well stimulation is not public in order to protect the proprietary info the JV has acquired on what is a frontier exploration well. GJ remains confident that he will get the approval in time to meet his March quarter deadline for fracking this quarter albeit it may be on 31 March! Gas is still flowing from the lower zone tho how much GJ wouldn't say when rung yesterday. If anyone is interested in the history of the fracking revolution in the US a book by Gregory Zuckerman called "The Frackers" is well worth a read. Jophda is right well stimulation has been around for years, it was the improvement in technique eg slick water fracks, that changed the industry. Having covered and written about the oil and gas industry over the last 15 years Sacgasco's Dempsey #1-15 well is one of the best chances I have seen in a long time to push a junior oiler's share price into the stratosphere like a nickel/cobalt play. The market cap is what, just above $22 million. Look at a junior like Comet Ridge struggling with coal seam gas at Mahalo. It has a market cap of over $150 million and hasn't produced any commercial gas. I am not sure why the market is ignoring Sacgasco's potential but that doesn't bother just means just means a bigger jump when/if the Dempsey stimulation delivers. 7Bookmark and ShareReport PostQuick replyReply with quote SGC (ASX) Price at posting: 8.0� Sentiment: Buy Disclosure: Held
James, the quarterly's should be released by SGC tonight ~ information on all aspects of future developments . re : Dempsey and Alvares.
(a) From PCL earlier today : From PCL today. Tulainyo is on trend with Alvares. "Progress has been made evaluating the well, in particular the wireline logs. As more information has become available, Pancontinental has grown more confident that the entire section of interest is gas saturated and there are sandstone reservoirs of sufficient quality to support commercial scale flows of natural gas. The intended testing programme, which is expected to commence within February will assess these theories and may find Tulainyo 2-7 to be the play opening well the joint ventures believes it to be." Http://clients2.weblink.com.au/news/pdf_1%5C01946459.pdf and ( b ) from SGC earlier today... "Alvares Natural Gas Project � Appraisal stage (SGC 39% WI) The Alvares natural gas project is located close to large natural gas pipelines and on trend 35 miles from the similarly structured, and recently drilled Tulainyo Project. Sacgasco�s Alvares project contains a total (100%) recoverable unrisked prospective gas resource on a best estimate deterministic basis of approximately 2.4 Tcf (400 million boe). Planning is proceeding for the Alvares well bore to be assessed for its suitability as the basis for drilling a side-track as a cost-effective way of evaluating the prospectively of extensive high-pressure gas shows discovered while drilling for oil in 1982. The upper 500 metres thick interval of the best gas shows were not previously evaluated due to logging difficulties related to high pressure gas influx." https://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=sgc&timeframe=D&period=W
4 min's 2 secs in: '' we can co-mingle zones, we can dual complete zones ' . https://soundcloud.com/user-246928730/episode-4-sacgasco-managing-director-gary-jeffery With five gas saturated zones which we are already aware of, one hopes Dempsey will most certainly therefore be a commercial success..
https://soundcloud.com/user-246928730/episode-4-sacgasco-managing-director-gary-jeffery
Hi, I note below you were attending. Could you please provide an update ? Many thanks.
ttps://www.finnewsnetwork.com.au/archives/finance_news_network168386.html John Begg, CEO PCL JV with SGC ~ worth listening to.
Sacgasco Fpo (SGC) Up to 9.5 cents Sacgasco Fpo ASX:SGC Australian Stock Exchange Ordinary Share AU000000SGC8 Sacramento Basin Oil and Gas Exploration Company. 0.005 5.6% 0.095 0.094 0.095 0.095 0.09 0.095 216,355 04:59:56 Type Size Price Time Units 1 AUD 0.095 04:59:56 AUD
Dempsey-1 Gas Discovery � Putting on Production Before Further Testing 11 � Dempsey has discovered gas at traditional, shallow levels and is a new field gas discovery at the larger, primary target levels. � All targeted sands appear to be gas saturated. � The lowermost sand and next zone up in the well flowed good quality, dry gas to surface. � The well has already proved our joint venture�s �Breakthrough Premise� that gas in the northern Sacramento Gas Basin originates from the older Cretaceous section. � Further testing and improved flow rates are required to demonstrate commerciality. � The well is being tied into the pipeline. It will be produced while more science is applied to the design of the next stage of testing. Dempsey‐1 is the first well to target the Early Cretaceous sand section on structure defined by 3D seismic. It remains to be proved that demonstrably commercial scale flow rates can be achieved. | 12 Tulainyo Drilled, Cased and full of Gas� � PCL earning effective interest 13.33% in multi -Tcf potential gas discovery. � Huge, compressed, 100 km� anticline with surface expression and gas seeps. � Operator CRC the largest gas producer in California. � We have proved with this appraisal well we can successfully drill and test gas in this over pressured geological environment. � All targeted sands gas saturated. production testing next to prove if capable of commercial flow. 56 m of gas pay indicated, waiting to be proved by testing. Reservoir quality as measured by the wireline logs is at least as good as the outcrop. https://hotcopper.com.au/threads/ann-investor-presentation.3956687/?post_id=30221726#.Wlboiqhl82w
Yes, but it's only now starting to gather momentum. I'm well pleased to have added. 35 p first of all then who knows with Niger success in particular.
All bodes well for SGC's drilling the nearby Alvares well. PCL having a JV with SGC in this well of course. Shared information as partners. https://hotcopper.com.au/threads/ann-tulainyo-gas-zones-evaluation-update.3949319/?post_id=30116297#.WlLZp6hl_IU Alvares Working Interests: After Farm‐in Working Interests in the Alvares Gas Project: Sacgasco Limited (ASX: SGC) (Operator) 39% Empyrean Energy PLC 25% Xstate Resources Limited (ASX: XST) 21% Pancontinental Oil & Gas NL (ASX: PCL) 15%
Agadem, could you please update this board re : how your one on one with AK went please ? His observations, opinions, body language, manner etc Many thanks.
As a holder of both SGC and EME it's encouraging to see the increase in share price last night from 8 cents to 9 cents. I hope perhaps news coming through of the permits/licences having been granted. ? Sacgasco Fpo (SGC) Sacgasco Fpo (SGC) Delayed Get real time Following SGC Name Symbol Mkt Delay 15 Mins Type ISIN Description Sacgasco Fpo ASX:SGC Australian Stock Exchange Ordinary Share AU000000SGC8 Sacramento Basin Oil and Gas Exploration Company. Change % Chg Cur Bid Offer High Low Open Volume Chg Time RN NRN 0.01 12.5% 0.09 0.09 0.091 0.09 0.082 0.082 523,429 04:58:13
As a not too large a tranche of shares was admitted for trading last week and the price settled comfortably at approx 29.00 / 29.5 p is the concensus of this board that with the major tranche yet to be admitted .. we should see the placing price of 35 p being realised only towards the mid / end of January ?
With thanks to jamieparklondon : The company is now waiting on regulatory approvals for the frac program which can take two to three months which is why they feel only able to say fracking in the first quarter. Could take sixty days could take 90 days all in the hands of the Californian regulatory authorities. From a call I had with GJ prior to Christmas I understand the plan is to frack just the second zone only which will give it access hopefully to zones both above and below where they are now, some 50 to 100 feet vertically in both directions. So instead of having a limited 30 feet of perforations they could have up to 130 feet open. My understanding further is that they are not looking to increase the flow rate by double or triple current rates but by multiples of current rates. First gas to sales from the second zone will hopefully be achieved by the end of December, in other words by the end of this week. Lot of excited people on the ground at Dempsey given Sacgasco has achieved a Sacramento Basin first by producing from the deeper sands.
As opposed to all the speculation.. shouldn't we be seeing an RNS confirming the SAVP relisting price today. Monday 18th December ?