Sacgasco LimitedABN 83 114 061 433ASX Announcement 7 May...

Sacgasco Limited
ABN 83 114 061 433

ASX Announcement 7 May 2018

Commercial Gas Flows From Dempsey 1
 Commercial test rate of 1 million cubic feet gas per day from a field level Kione
Sandstone interval;
 Zone 4 testing preparations have commenced;
 Kione gas flow expected to double SGC’s operated gross Sacramento Basin production;
 Production enhancement activities on other wells, including Dempsey area wells
continues in order to further grow sales.
Sacgasco Limited (ASX: SGC) advises that flow-testing of the Dempsey 1-15 well from the field level
Kione Zone has produced a commercial gas flow rate of 1 million cubic feet of gas (1,000 Mcf/day).
The flow rate is very encouraging as it is water free natural gas, flowing through a 12/64” choke with
flowing tubing pressure of 1140 PSI, and surface shut-in pressure exceeding 1300 PSI.
Operational considerations meant that perforating the Kione Zone ahead of Zone 4 would deliver
significant benefits for the perforating of Zone 4 sands. Zone 4 testing preparations are underway.
After testing Zone 4, Sacgasco plan to combine production from all flowing tested zones in the
Dempsey 1-15 well; and anticipates very early cash flow as the gas sales infrastructure is already
connected to the Dempsey well.
Sacgasco previously announced 4 gas saturated sand intervals at the field production level at
Dempsey. The tested zone in the Kione referred to above is just one of those reported zones. Other
intervals will be perforated at a future time to be determined by operational considerations. Options
for testing of various other intervals in the Dempsey Well bore are being maintained.