Ann: September 2020 Quarterly Activities and Cash flow Reports, page-16

The following post is designed as an addition to previous HC post #48035760 on 12 Oct 2020.

Cycles

Historically we can see SGC’s sale price (SP) forms a crest highs between 35 months to 44 months’ (Time Window). To date we have entered the 38 ^Th month which is close to mid-Cycle parameters.

Ecclesiastes 1:9

“What has been is what will be, and what has beendone is what will be done; there is nothing new under the sun.”

Cycle 1/6 - Financial Maters
Cycle 2/6 - Communicating plans
Cycle 3/6 - Solar Eclipse
Cycle 4/6 - Gas Prices
Cycle 5/6 - Progress and surprise

Cycle 6/6 - Progress and surprise/ Financial Maters

Cycle 7 - Gas Prices

I invite the reader to look at historical ASX announcements and revisit the astro cycle chart as a point of reference you will notice it has correlated quite well and so has the SP. Cycle 2 has been replicated recently so this indicates that double the work load in planning and communication has occurred behind the scenes at HQ recently, I’m of the opinion that we have a lot of extra planned progression in the near future that is of an unexpected nature (cycles 5, 6,2,1,2 forming a base. Those who have followed my workings in Cycle 3 (past 17 months) know what to expect in December. I shall give you a tip, all things going well Cycle 5 will give you a very Merry Christmas and joyous New Year!...... One for the ages, with Cycle 6 to follow (TBA).

Technical Analysis (TA)

It’s beyond my comprehension that anyone would sell recently in the 3’sor low 4’s. My comment on TA previously was that shareholders were “gettingsucked into selling.”

MACD and EMAs’ indicators work on historical data in other words theyhappen after an event!




Recently we revisited .037 cent swing point again with a new low of .035 cents put in place. Although we had an increased Volume of 1.3M it still didn’t fly and was rejected only to close @ .04 cents on a daily basis. I had a very recent conversation with an extremely credible source that mentioned several entities were accumulating this stock on the quite, my reply was “I know that to be a fact on a volumetrics basis.” The understanding of swing points and volumetrics more so on a weekly, Monthly and Quarterly basis is imperative when analysing Charts it provides a clearer picture on a stock’s performance.
Currently we have a building up of energy and a series of coiled springs since September illustrated on above chart. This ultimately ends up with a large move to the upside with volume in other words we have consolidation at a higher price which is what you want to see in a strong stock performance. IMO double the current SP and add some interest very soon we’ve only retraced 32% of the whole move up from April’s low of 007 cents (refer to Yum Yum Chart on previous post).

Borba Potential Resource

I refer to Borba as a beast for reasons already explained, whiledoing some recent research on 6 tcf discoveries I came along this article:

https://qceablog.wordpress.com/2011/11/10/cyprus-struggling-along-or-about-to-hit-the-gas/

NobleEnergy, has been involved inIsraeli development of their EEZ since 1998 and recently discovered two majorsites. The Tamar site was discovered first and is estimated to hold 6.3 trillioncubic feet (tcf) of recoverable gas – nearly free from impurities. This discovery was followed by the Leviathan: - a mythical monster of a gas discovery, of an estimated 16tcf. This monster, at a minimum, borders the Cypriot EEZ, which is where the potential for problems has arisen.

Extract 4^th June Webinar

“Various people have spent their time countinghow many amplitude anomalies there are ….from10, 12, 14, and 16 tcf and thereis a model that fits that enormousness.” But GJ then plays that down so we areabout to find out shortly.

In any event I stand by my observations and assumptions :> 6tcf PIIP

Additional Leases

The below map was posted on 01/08/2020 post#46234772

There were many reason this Map was generated andshared, not all reasons were obvious.

On closer examination of the recent - Constructionbegins on all- weather drill pad ASX Announcement 28/10/2020

Extract: page 2

“Sacgasco is planning to commence drilling the Borba 1-7 well as soon as final preparation for drilling is completed and additional leasing is documented.”

Note: Documented is to register/record or file

The very next sentence states:

“At the shallow Kione Formation the Borba well will test a strong seismic anomaly separated from the sandstones that were productive at this level in the nearby West Ord Bend Gas Field. Production has also been encountered in the Borba vicinity from other shallower sand reservoirs.”

There is a saying: If you want to hide something do it in plain sight.

Sacgasco own lease area in

A) Rancho Capay Gas Field (Dempsey)

B) Dempsey trend (Borba)

C) The question has to be asked: What Gas Field Borders Borba 1-7 well to the South and who owns most leases in this field?

In the past we have had a couple of setbacks withBorba and many road blocks were placed by the bully in the room (CRC) thisbrings to mind the story of Actaeon in Greek Mythology.

https://www.greekmythology.com/Myths/Heroes/Actaeon/actaeon.html#:~:text=Actaeon%20was%20a%20famous%20hero,eventually%20leading%20to%20his%20death.

CRC current Market Cap is $1.39 million USD onthe pink slips (CRCQQ)with 2.4 million mineral rights acreage and 137 fields inCalifornia …….. it’s about to take a haircut.

https://markets.*.com/stocks/crc-stock

This door opens for a nimble, astute andproactive company like SGC – watch this space.

Borba Well # 1 - Operator Hunt Oil - 1998

At around 5,600 feet (1,700 metres) the well is projected to be in a mapped structural closure 140 feet (43 metres) up-dip from a 1998 well which encountered multiple zones over a 570 feet (175 metres) interval of high gas shows and porosity. These shows were not flow tested at the time, but these sands intervals have been productive in the local area.

Note; Refer to above map with regards to proximity to Borba 1-7 well and Guinda Formation @ ~ 5600’

SGC Farm out opportunities

In any contractual arrangement there has to be at least 2 parties involved with an offer and acceptance in place. For this exercise let’s examine what SGC is offering:

Dempsey 1-15 & Dempsey trend (Borba 1-7)

http://www.sacgasco.com/wp-content/uploads/2017/06/2017.06.22-ASX-SGC-Additional-Empyrean-Energy-Farmin.pdf

Extract Page 2

This farm out in conjunction with previously announced farm out agreements will result in Sacgasco funding approximately 12% of the expected Dempsey 1 well drilling costs to retain 50% working Interest in the Dempsey Prospect.

Empyrean has also agreed to join Sacgasco in exploration along the Dempsey trend……The earning basis is as follows:

Identified Prospect #1: EME pays 60% of drilling cost to earn 30% WI (Borba 1-7)

SGC had a paying interest of 16% for Borba 1 -7.

Rio Vista

http://www.sacgasco.com/wp-content/uploads/2018/01/ACQUIRES-ASSETS-IN-CALIFORNIA%E2%80%99S-GIANT-RIO-VISTA-FIELD.pdf

Extract Page 1

100% interest in 467-acre oil and gas lease with 3 wells and 3 development targets in largest gas field in California

A third well (Rec Board #5) has over a shorter period produced 1.6 Bcf, before being shut in due to mechanical complications. This well presents a side-track opportunity to access undrained gas. There are at least 2 other development drilling sites within the acreage with stacked sandstone reservoirs potential.

Stage 2 of well work overs has Rio Vista in the pipe line, therefore it is highly likely and quite probable that SGC could get a free or reduced cost two well workover program and a free Side track Drill on Rec Board 5# well targeting 2-3 Bcf from a farm-in partner.

Alvares

SGC now has 75% WI in Alvares (2.4 Tcf) discovery since EME departure.

Further

The well will be drilled with a small directional component (10⁰ to 15⁰⁾ to optimise the intersection of more than 10 separate seismic anomalies on 3D seismic.

Therefore 11 or more seismic aptitude anomalies to be tested with drilling towards a fractured and gas productive basement which is tremendous news , I don’t know if anyone was paying attention but when CRC were involved in December 9^th 2019 we were not drilling to basement (9100’)refer to below ASX announcement.

http://www.sacgasco.com/wp-content/uploads/2018/01/Final-Permit-Received-for-Borba-Natural-Gas-Well.pdf

As well, third party interest is building, and we are assessing several potential farm-in offers and other proposals that will ensure we are fully funded to capitalise on this enticing investment.

SGC have a credible reputation as a deal maker! Absolutely looking forward to new farm in partner/s and WI’s.

Gas Prices

Since 5/08/2020 Post#46309079 when Gas prices at PGE & Citigate (~USD$2.60) the latest forecast being a projection of ~USD $4.70.
If one looks at Cycle 4 & 7 on the Astro Cycle Chart the lows in April/July and (High/Low to come in November) has track PG Citigate Gas prices quite well.


Conclusion

I mentioned 3month ago we are expecting;

More Gas Lease Acquisitions in Sacramento Basin

Borba the Beast Specifications

Rio Vista Workover

Rio Vista Farm out and free carry (1 well- Rec Board 5)

Dempsey 1-15 Workover

3D seismic

This Flow chart was created in June after SGC webinar and represents myinterpretation forward looking!

All Bases are loaded Folks!!! Just waiting for the batter to hit a homerun.

‘It’s the repetition of affirmations that lead to belief and once thatbelief becomes a deep conviction, things begin to happen.” – Claude M Bristol “TheMagic of Believing” – 1948

Celebrities that have mentioned this book as inspirational ’PhyllisDiller, Liberace and Mohamed Ali”

as always
Cheers
BI