Sacgasco Provides Update on Dempsey Gas Well

Sacgasco Limited advises that Paul Graham Drilling Rig 9 and associated equipment continues to be moved off the Dempsey 1-15 well location to make way for a more appropriately sized and cost effective completions rig to carry out extensive testing. Paul Graham Rig 3 has been selected for the planned completion and testing program.

The timing of the components of the program will be the result of the ongoing detailed logistical co-ordination of the rig and services, interfaced with delivery, assembly and running of high pressure (10,000 psi rated) completion equipment necessary for the safe conduct of the planned tests. The testing is being planned around tubing conveyed perforating equipment that is expected to provide deep “1 metre plus” penetration into the multiple potential gas reservoir zones.

The casing perforations for the first reservoir flow test are anticipated to take place towards the end of October 2017. The adjacent JV owned meter station is being readied for gas flows from the Dempsey well.

Working Interests (WI) 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:

“The safe drilling and casing of the Dempsey well to its prognosed targets was a significant achievement in the Northern Sacramento Basin. This was accomplished through diligent planning and disciplined drilling procedures.

The same approach is being taken for the testing operations. We have sourced a workover rig with appropriate capability and with an experienced crew. Due to the reservoir formation pressures encountered while drilling, high pressure rated equipment is being employed for the upcoming operations.

The choice of tubing conveyed perforating equipment reflects Sacgasco’s intent to optimise the potential gas flows from the identified reservoir intervals selected for testing.

This is an exciting time for Sacgasco and its working interest partners as we test this potential breakthrough well. Additional information will be provided as testing is carried out”.