Sacgasco : SGC March 2020 Quarterly Activities and Cash Flow Report
SGC.AX
Sacgasco Limited
ABN 83 114 061 433
Unit 14, 210 Bagot Road, Subiaco, WA, 6008.
T +61 8 9388 2654
Announcement to ASX
30 APRIL 2020
MARCH QUARTERLY ACTIVITY REPORT
HIGHLIGHTS
Sacramento Basin Natural Gas Prices
Sacramento Basin-focusednatural gas developer Sacgasco Limited (ASX: SGC) ("Sacgasco" or "the Company") is pleased to provide the Quarterly Activities Report for the calendar quarter ending 31 March 2020.
EXPLORATION, APPRAISAL AND NEW VENTURES
ONSHORE CALIFORNIA
Gas Flow Enhancement
Conventional Natural Gas flows from unstimulated sandstone reservoirs have regained a relative advantage to the activities in shale-focused oil and natural gas industry following the collapse of world oil prices.
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SACGASCO LIMITED
Consequently, the company has prepared a work-over program designed to enhance gas flows from existing natural gas wells. Initially workovers on 3 wells are being planned and permitted. These are low cost investments, with anticipated short economic pay-back characteristics, that can enhance the foundation for Sacgasco's growth.
Borba Natural Gas Prospect
As previously announced Sacgasco has received the Drilling Permit from California Division of Oil, Gas and Geothermal Resources for Borba 1-7 well.
The Company interprets the Borba prospect to be an optimal location to test multiple stacked amplitude anomalies and potential channel fill conventional sand reservoirs, in a vertical well.
During the reporting quarter the access road to the Borba well location was upgraded as part of drilling preparations. The drilling of the Borba well has been delayed by practical and risk considerations associated with uncertainties around COVID 19 limitations on personnel and equipment deployment. Until these are clarified the Company is unable to provide further timing guidance.
Sacramento Basin
The Company continued to maintain leases in the Sacramento Basin during the quarter. Sacgasco has a working interest (WI) of between 10% and 100% in oil and gas leases which cover natural gas prospects ranging in size from 5-20 Bcf to Tcf recoverable prospective resources of Natural Gas.
Sacgasco continues its strategic analysis of well histories and seismic to uncover opportunities for growth.
GAS FLOW UPDATE
Gas Flows
March 2020 Quarter
December 2019 Quarter
Gross mcf * (100%)
47,911
52,617
Net SGC mcf (after Royalty)
27,305
29,768
*mcf - Thousand Cubic feet gas
Gas flows were slightly reduced in the quarter by operational interruptions exacerbated by COVID-19 restrictions.
The relevant Natural Gas prices in California for the last quarter have been significantly above, and are currently some 40% above, the USA benchmark Henry Hub natural gas prices.
CURRENT QUARTER OBJECTIVES
Implementing a work-over program designed to enhance gas flows from existing gas wells. Initially workovers on 3 wells are being planned and permitted.
Planning for the drilling of the Borba Prospect in 2020 will be pursued within the practical limitations and risks imposed by the current COVID 19 operating environment.
The Company will continue to review potential projects for their strategic fit.
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SACGASCO LIMITED
Project Portfolio
SGC's current focus is unlocking the underlying value from its natural gas prospects in the under- explored parts of the Sacramento Basin and elsewhere as opportunities arise.
Sacgasco is the Operator of all but one of its WI wells and related tenements:
PROJECT NAMES
LEASES; RELATED GA
S
PROJECT
TOTAL GAS
WORKING
All located in the
FIELD (HBP LEASES);
TYPE
WELLS
INTEREST
OR KEY WELL
(WI)*
Sacramento Basin
Onshore northern
California
Rancho Capay, Rice
Exploration,
Dempsey Area
Creek, East Gas Fields -
Appraisal &
HBP Leases;
Rework
10
40-60%
Project
Oil and Gas Mineral
Leases
Oil and Gas Mineral
Exploration &
Alvares Project
Leases;
Appraisal
1
50%
Alvares 1 well (P&A Re-
entry)
Borba Project
Oil and Gas Mineral
Exploration
-
50%
Leases
Los Medanos
Los Medanos Gas Field
Appraisal &
2
90%
Project
HBP Leases
Rework
Malton Gas Field HBP
Exploration,
Malton Project
Leases
Appraisal &
8
45-70%
and Oil and Gas Mineral
Rework
Leases
Dutch Slough Gas
Dutch Slough Gas Field
Exploration,
HBP Leases
Appraisal &
4
70%
Project
Rework
Denverton Creek
Denverton Creek Gas
Gas flow &
Field
Rework
1
70%
Gas Project
HBP Leases
Rio Vista Gas
Rio Vista Field Wells
Gas flow,
Project
HBP Leases
development &
3
100%
Rework
Willows Gas Field
Willows Gas Fields
Gas flow &
1
10%
(Non-operated)
HBP Leases
Rework
Corporate
At the end of the Quarter the company provided its 2019 Annual Report to Shareholders.
The company appointed a Joint Company Secretary, Jordan McArthur.
Appendix 5B Quarterly Cash Flow report includes $5,200 at Line 6.1 under "Payments to related parties of the entity and their associates". This is the payment for an office lease to a related party of Andrew Childs, a Director of Sacgasco Limited.
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SACGASCO LIMITED
SACGASCO CAPITAL STRUCTURE
ISSUED CAPITAL at 30 April 2020
Ordinary Shares (ASX: SGC) *
270,418,994
Listed Options (ASX: SGCOA)
133,429,938
Unlisted Options exercisable @ 4 cents by 31 December 2021
19,000,000
NOTE:
For and on behalf of the Board of Sacgasco Limited.
Gary Jeffery
Ben Jarvis
Managing Director
Six Degrees Investor Relations
+61 8 9388 2654
+61 (0) 413 150 448
About Sacgasco Limited (ASX. SGC)
Sacgasco Limited (ASX: SGC) is an Australian-based energy company appraising, developing and flowing clean conventional natural gas in the Sacramento Basin, onshore California.
SGC has an extensive portfolio of conventional-reservoir, natural gas flowing wells; and prospects at both exploration and appraisal stages, including Tcf natural gas opportunities.
The Company is targeting gas supply to the premium local Californian gas market and burgeoning LNG market in North America.
Sacgasco is of the view that the size of prospects in California have been the potential to supply both domestic California natural gas and export LNG markets including those to Asia.
Sacgasco's strategy is to find and develop under-valued and under-explored opportunities connected to under-supplied oil and gas markets with attractive product prices.
www.sacgasco.com
Twitter: @SacGasCo
Leases:
US exploration is conducted on leases grant by Mineral Right owners, in SGC's case primarily private individuals or groups. Leases can vary in size from very small parcels (part of an acre) to large landholdings (covering a few square miles). Leases generally are for 5 years and rentals are paid annually. There are no firm work commitments associated with the leases. Some leases are 'Held By Production' (HBP) and royalties are paid to mineral right owners in lieu of rentals. SGC has not listed all it leases as it is impractical and not meaningful for potential project value assessment in a conventional natural gas play. A detailed listing of leases may also lead to a loss of competitive advantage and consequent reduced value to SGC shareholders.
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SACGASCO LIMITED
Competent Persons
This document contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by many variables which could cause actual results or trends to differ materially. The technical information provided has been reviewed by Mr Gary Jeffery, Managing Director of Sacgasco Limited. He is a qualified geophysicist with over 47 years technical, commercial and management experience in exploration for, appraisal and development, and transportation of oil and gas. Mr Jeffery consents to the inclusion of the information in the form and context in which it appears.
The timing of future events is subject to the normal industry vagrancies of operational matters and equipment availability which are outside the control of Sacgasco and its suppliers. Facilities depicted in images on the Sacgasco website are not necessarily assets of Sacgasco. Some of the images used represent aspects of the oil and gas industry in which Sacgasco is involved or images of equipment owned by companies providing services to Sacgasco.
Before investing it is recommended that investors conduct their own due diligence and consult financial and technical advisors and form their own opinions on future events and implications.
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Disclaimer
Sacgasco Limited published this content on 17 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2021 07:46:05 UTC.