Sacgasco Reports Significant Gas Shows at Dempsey Well

Sacramento Basin-focused natural gas developer and producer, Sacgasco Limited (Sacgasco) advises that the Dempsey 1-15 well in the Sacramento Basin in California is drilling ahead in 8 1/2” vertical hole.

Since the last update mud logs have indicated new zones of significant gas shows in improved reservoirs. These reservoirs are interpreted to be equivalent to sandstones seen in outcrop in the coastal rages to the west, but were not considered to be likely to be present in the Dempsey well.

Shareholders and investors are advised that the significance of these shows will become more apparent when the next wireline logs are run to more fully evaluate the intersected gas shows and reservoirs. This is planned after reaching the proposed total drilling depth of approximately 3,200 metres.

The Dempsey 1-15 well is currently drilling ahead below 2,300 m (~7,670 feet) to the highly under-explored deeper targeted reservoirs in the approximately 900 m (~2,900 feet) of remaining section to be drilled.

Dempsey is drilling the largest undrilled mapped structural closure in the northeastern part of the prolific Sacramento Gas Basin and is interpreted to be optimally located to trap gas migrating out of gas generating areas located to the west and south.

Working Interests in the Dempsey Gas Project: Sacgasco Limited (Operator) 50%; Empyrean Energy PLC 30%; Pancontinental Oil and Gas NL 10%; and Xstate Resources Limited 10%.

Gary Jeffery, Managing Director of Sacgasco commented:

“We continue to be very pleased with the execution of the drilling. The results have been broadly consistent with prognoses, however the present zone of shows is interpreted to be from a regionally known, but unexpected target at Dempsey. An encouraging observation about the drilling since setting 9 5/8” casing is that all potential reservoir zones interpreted from mud logs have been associated with significant gas shows.

Further updates will be provided on meaningful results from the evaluation of the target sandstone reservoirs spread across the interval to be drilled.”