- Oil and gas explorer Xstate Resources (XST) has hit gas in its recently-spudded onshore Borba 1-7 well in the Northern Sacramento Basin, California
- The company spudded the well in February and has now reported a gas show in the first reservoir objective at the project, called the Kione sands
- The gas show covers a 58-metre interval below a 1155-metre measured depth, with the well intersecting a peak of 65 units of gas over a background of five units
- Xstate and joint venture partner Sacgasco (SGC) will now take on petrophysical log analyses to determine the shows’ significance
- Meanwhile, drilling is ongoing, with Xstate expecting to hit the well’s casing point over the next few days
- Shares in Xstate are up 25 per cent this morning to trade at 1.5 cents each
Xstate Resources (XST) has hit gas in its recently-spudded onshore Borba 1-7 well in the Northern Sacramento Basin, California.
The oil and gas explorer spudded the well in February 2020 and has now reported a gas show in the first reservoir objective at the project, called the Kione sands.
According to Xstate, the gas show covers a 58-metre interval below a 1155-metre measured depth. The well intersected a peak of 65 units of gas over a background of five units, where one unit of gas is the equivalent of 200 parts per million of methane.
The well is busy being drilled below 4737 feet, with background gas increasing significantly below 4300 feet. Xstate said some zones below this 4300-foot mark recorded gas measurements over four times higher than the average background gas levels.
Xstate will have a 33.33 per cent working interest in the Borba well once drilling is complete, with joint venture (JV) partner Sacgasco (SGC), which operates the well, owning the remaining 66.67 per cent.
It’s important to note that Xstate said it’s not certain how significant the gas shows from the Borba well are just yet. The companies will take on petrophysical log analyses to determine the shows’ significance.
“The intersection of gas shows in our first reservoir objective is very promising,” Xstate Managing Director David McArthur said.
“This zone appears to coincide with our first bright amplitude on the seismic. The zone will be logged and put behind 9 5/8-inch casing and secured for further testing at a later date,” he said.
Drilling will continue at the well until the company reaches the casing point, which refers to the point were drilling stops and the JV partners must make the call to complete the well or plug and abandon it. Xstate is expecting to hit the casing point in the next few days.
This section of the well will then be logged and cased, securing it for later evaluation.
Shares in Xstate are up 25 per cent at 11:25 am AEDT today to 1.5 cents per share. The company has a $37.65 million market cap.