- Sacgasco (SGC) has hit 92 feet of net gas pay at its key onshore Borba 1-7 well in the Northern Sacramento Basin, California
- Sacgasco has drilled the well to 5510 metres with joint venture partner Xstate Resources (XST) and received important petrophysical logs from the area
- On top of the 92 feet of gas pay, the oil and gas companies have reported “good to excellent” average zone porosity of between 14 per cent and 27 per cent
- The companies are now making preparations to drill out towards the Guinda Sandstorms area, which is the second objective in the key drilling program
- Once the drilling program is complete, Sacgasco will own 66.67 per cent of the Borba well, and Xstate will own the remaining 33.33 per cent
- Shares in Sacgasco are up 4.4 per cent this afternoon to 9.5 cents each, while shares in Xstate are trading grey at 1.5 cents per share
Sacgasco (SGC) has hit 92 feet of net gas pay at its key onshore Borba 1-7 well in the Northern Sacramento Basin, California.
After drilling to 5510 feet in the well, Sacgasco has now received important petrophysical logs from the area and highlighted “good to excellent” average zone porosity of between 14 per cent and 27 per cent.
Porosity refers to the tiny holes and spaces in the underground rock that hold the gas, while net gas pay refers to the portion of reservoir rock that has the potential to produce commercially-viable gas.
Sacgasco, which owns the Borba well in a joint venture with fellow ASX-listed Xstate Resources (XST), said the pay zones are all sandstone reservoirs below 3795 feet. All up, the gross interval of the interpreted pay covers 185 feet, or 56 metres.
Moreover, Sacgasco said the pay zones coincide with Borba gas shows reported last week as the drilling campaign at the well continues.
Xstate added that 42 metres of pay have now been secured behind casing to be flow tested sometime after drilling has been completed.
Xstate’s Managing Director, David McArthur, said the has discovery at Borba is an “excellent outcome” for the well so far.
“The seems amplitudes, gas shows, sand quality and gas pay a the shallow Kione zone are all coincident and bode well for the objectives to come,” David said.
The joint venture partners said the drill rig at Borba is busy making preparations to drill out towards the Guinda Sandstorms, which is the second objective in the key drilling program.
Currently, Sacgasco, which operates the joint venture, owns 62.5 per cent of the Borba well, and Xstate owns the remaining 37.5 per cent. Once this key drilling program is finished, however, Sacgasco will have earned some extra interest to hold 66.67 per cent of Borba, with Xstate owning the rest.
Shares in Sacgasco are up 4.4 per cent at 11:13 am AEDT, trading at 9.5 cents per share.
Meanwhile, Xstate shares are trading grey at 1.5 cents each.