Sacgasco Ltd’s (ASX:SGC) Borba 1-7 well has intersected anomalous gas shows in the first reservoir objective, called the Kione sands, adding confidence to the interpretation of deeper gas reservoirs at the Sacramento Basin, onshore California.
The company intersected high gas shows peaking at 65 units (13 times higher than the normal background gas level of 5 units) at the well and the gas shows covered a gross interval of 190 feet (58 metres) below 3,790 feet measured depth.
The gas shows are in sandstones correlative with the productive Knight Sands and underlying Basal Kione gas reservoirs that produced Natural Gas from the adjacent Ord Bend Gas Field.
Wells in this field-tested at rates up to 4,600 million cubic feet (mcf) per day from thin Knight Sands.
“Encouraging high gas shows”
Sacgasco’s managing director Gary Jeffery said: “Drilling of the Multi-Tcf-Play opening well at Borba 1-7 is progressing according to plan and directionally on target in ‘Big-Gas Country’.
“It is very encouraging that the first target reservoir in the Borba 1-7 well has been encountered with high gas shows over an interval which is thicker than what was anticipated.
“This confirmed our interpretation of the relevance of the Seismic Amplitude Anomalies and the presence of Natural Gas and augurs well for the multiple undrilled amplitudes ahead.
“The intersected gas shows are in sandstones which are correlative with the productive locally named Knight Sands and underlying Basal Kione Gas reservoirs that produced Natural Gas from the adjacent Ord Bend Gas Field.
“Wells in this field-tested in the late 1990s at initial rates up to 4,600 mcf per day from relatively thin Knight Sands.”
Gas prices in the northern Sacramento Basin
Jeffery said that Gas prices in the northern Sacramento Basin continue to be around A$5 per mcf.
He said: “I am also pleased to report that further good progress has been made on re-establishing higher oil production levels in the Alberta Plains assets in Canada so we can capitalize on the strengthening price of oil.
“These assets and the other assets we are purchasing at Red Earth, which we expect to close on later this month, have lots of production upside from the existing wells and considerable untapped potential.
“As usual, we will report regularly to update progress and more often if required to meet continuous disclosure obligations.”
3D seismic amplitude anomalies
Borba 1-7 drilled to 4,737 feet and will be drilled to test multiple stacked 3D seismic amplitude anomalies in the interval from 3,200 feet (975 metres) to 9,500 feet (2,800 metres).
The prospective interval covers more than 6,300 feet (1,920 metres).
The well is expected to take a further 20-25 days to drill the entire prospective interval.