- Xstate Resources (XST) and Sacgasco (SCG) have seen strong high-pressure natural gas flows from Kione Sandstones in Borba 1 to 7 in California
- The well flowed at a stable rate of 1.6 million cubic feet of gas per day at 1150 pounds per square inch of flowing tubing pressure
- The companies anticipate the well could be brought into production at a flowing rate of around 3 million cubic feet of gas per day
- Additional testing from the perforated interval will be carried out over the coming weeks to provide data for reservoir engineering management
- Xstate Resources is up 30 per cent, trading at 0.7 cents, while Sacgasco is up 16.2 per cent, trading at 4.3 cents
Xstate Resources (XST) and Sacgasco (SCG) have seen strong high-pressure natural gas flows in initial results from a flow test of Kione Sandstores in California.
The flow test looked at the near-vertical Borba 1-7 well, located next to the Ord Bend Gas Field in the northern Sacramento Basin.
The well flowed at a stable rate of 1.6 million cubic feet of gas per day (MMCFPD) at 1150 pounds per square inch of flowing tubing pressure, with shut-in tubing pressure reaching 1,760 pounds per square inch.
The initial clean up and stable flow testing has been completed, and the completion rig has now been demobilised.
Based on the initial stable flow rates, pressure data and analogue data from previous local wells, the companies anticipate the well could be brought into production at a flowing rate of around 3 MMCFPD.
However, despite holding the belief that much higher headline rates flow could be achievable, the joint venture has agreed to adopt a more conservative practice to achieve optimum natural gas recovery over the life of the well.
“This is an excellent result for our company, with the production portfolio now building in California as well as Canada,” said Xstate Managing Director, David McArthur.
“The commercial flow from Borba now means we can investigate other similar opportunities in the region, that are now significantly de-risked.”
“We are currently looking into 4 alternative ways to fast track the connection of the Borba 1 to 7 well into the California sales gas pipeline system in order to generate revenue as quickly as possible,” said Sacgasco Managing Director. Gary Jeffery.
Additional testing from the perforated interval will be carried out over the coming weeks to provide data for reservoir engineering management. A gas sample will also be acquired during this testing, with the produced gas expected to be predominantly methane.
Xstate Resources is up 30 per cent, trading at 0.7 cents, while Sacgasco is up 16.2 per cent, trading at 4.3 cents at 10:35 am AEST.