Sacgasco’s Dempsey to produce commercial gas flows at ~1,200 mcf per day


  • Represents combined gas flow rate from Field Level Intervals and from Zones 2, 3 and 4
  • Dempsey will generate cash flow from this production very shortly – more than doubles existing production from Sacramento Basin gas fields
  • Multiple options being pursued to further develop Dempsey well and field reservoirs now commercial production has been established
  • Alvares works being scheduled for next quarter

Sacramento Basin-focused natural gas developer and producer, Sacgasco Limited (ASX: SGC) (“Sacgasco” or “the Company”) is pleased to advise that the Dempsey 1-15 will very shortly produce into the sales gas pipeline at an anticipated rate of 1,200 mcf per day from Field Level Kione Sandstone and the combined Zones 2, 3 and 4. Consequently Dempsey will very shortly be generating cash flow for SGC and its projects partners.

Zone 4 was perforated and tested with gas flow comingled with production from Zones 2 and 3 at a combined rate of 175 mcf / day on a 12/64″ choke with associated minor water. The gas contribution from Zone 4 is interpreted to be minimal. The field and older zones in the well will now be produced and monitored in separate streams (via a dual completion) at the surface to enable reservoir assessment as the basis for further development activities in these levels.

Based on test data, the Dempsey well has produced clean dry natural gas from a vertical interval of over 2000 feet, and this information will be integrated with geology and seismic to evaluate production options, including reservoir production enhancement through fracture stimulation, and alternative deviated well configurations.

Production data and economic assessments will determine the development plans for Dempsey reservoirs and associated Sacgasco drilling activities in the Sacramento Basin.

Sacgasco is advancing with the connection of 7 idle wells into the sales gas system. Once connected, these wells are projected to add very material natural gas production and revenues. Four of these wells are in the Dempsey area.

Applications have been submitted to the regulator to permit re-entry of the Alvares-1 well bore.

The plan is to assess the integrity of the well bore as the basis for a decision to either log through casing and perforate zones of interest for natural gas production or alternatively drill a sidetrack to enable gas-filled reservoir assessment in a newly drilled interval of reservoirs. Commencement of these activities are planned for next quarter.

Immediate works program

Ongoing: Production optimisation, and production renewal through work-overs of Sacgasco operated well bores in six gas fields.

Next 4 to 6 weeks: Connection and return to production of currently idle, but available, well bores in the Dempsey area and further south.

Next Quarter: Alvares re-entry and assessment.

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