Sacgasco: Dempsey gas well to flow test multiple zones

Save to read listPublished by David Bizley, EditorOilfield Technology, Tuesday, 19 September 2017

• Wireline logs confirm numerous zones for production testing.
• Wireline log data supports the presence of gas saturated sands consistent with previously reported significant gas shows.
• 5 ½ in. liner run and cemented to protect zones for testing.
• Drill rig being replaced by workover rig to carry out completion and testing.
• Testing expected to commence in 2 to 3 weeks based on logistics of rig moves.
• Tests to be conducted sequentially from lowest up (not in priority of interpreted significance) and will cease once sufficient commercial flow is established for production.

Sacramento Basin-focused natural gas developer and producer, Sacgasco Limited has advised that the Dempsey 1-15 well in the Sacramento Basin in California has completed the drilling phase, and a 5 ½ in. liner has been run and cemented to protect all potential reservoirs beneath the existing 9 5/8 in. casing.

Since the last update, two wireline logging runs have been completed.

The wireline log data supports the presence of gas-saturated porous sands consistent with the zones of significant gas shows reported earlier.

Flow testing of the potential gas producing reservoirs will commence in 2-3 weeks when the current drilling rig has been demobilised and a more cost-effective workover rog has been moved to the Dempsey well location. For practical reasons, the flow testing process will be carried out in a sequential way from the lowest zone of gas upwards. At such time that a zone is capable of flowing pipeline quality gas at commercial rates, testing will be suspended and the well placed in production for earliest cash flow.

These strata have been underexplored and under-evaluated in the Sacramento Basin.

Therefore, in the absence of nearby analogue producing reservoirs, flow testing in the next stage of operations will determine whether the gas sands have a combination of porosity, permeability and access to volumes of reservoir rocks of sufficient quality to flow gas at commercial rates for an extended period.

Shareholders and investors are advised that the production potential of these zones of interest will become more apparent when the zones are flow tested through perforations in the liner.

Flow testing of the potential gas producing reservoirs will commence in 2-3 weeks when the current drilling rig has been demobilised and a more cost-effective workover rig has been moved to the Dempsey well location. For practical reasons, the flow testing process will be carried out in a sequential way from the lowest zone of gas upwards. At such time that a zone is capable of flowing pipeline quality gas at commercial rates, testing will be suspended and the well placed in production for earliest cash flow.

Dempsey discovery

Sacgasco operates the Dempsey gas project with a 50% interest. UK-listed Empyrean Energy holds a 30% stake and other ASX-listed players Pancontinental Oil and Gas (ASX: PCL) and Xstate Resources (ASX: XST) each hold a 10% stake.

The company confirmed the project as a significant discovery in December and placed its Dempsey-1 well into production in January.

An enhanced reservoir stimulation program, designed to significantly improve the productivity of the well, began in March.

Sacgasco is focused on developing natural gas prospects in the Sacramento Basin to supply to the local Californian gas market as well as export LNG markets.

In addition to the producing Dempsey well, the company has an active well-work program in the Dempsey area and across its broader asset portfolio which it hopes will be “likely to further increase production in the near term

BORBA.

There is an unsatiated 7 Bcf/day gas market in California which imports over 90% of its natural gas from Canada and other US states.

"Natural Gas in California continues to realise premium prices that are currently close to US$4.00 per mcf.

'The Sacgasco led JV owns pipeline access equipment less than 5 miles from the Borba well site which means we can monetise a successful producing natural gas well quickly and cost effectively."

SGC owned meter stations within 5 miles, already
connected to Open-Access gas pipelines; Two other
pipelines connections within 2 miles of Borba
Location The dempey tests took so long because the limited amount of gas flow. Their original plan was to to stop testing as soon as they found a good flow and start production, it was not to be, I'm not putting this up to scare any body off far from it, just to show how it went down. I would expect their running the same game plan for BORBA with what i have been able to read. With gas lines within 2 miles and 5miles and talk of only weeks for a hook up if successful, it should be a very fast turnaround if they hit a commercial flow at TD. Time will be a good indicater of how to play it in my mind anyway. I'm not sure if rig 5 can do that kind of testing needed someone on here smarter than me would know.