SGC just announced this... so they are preparing to get it all...

SGC just announced this... so they are preparing to get it all happening

Announcement to ASX 12 September 2016

SHARE PLACEMENT TO ADVANCE JOINT VENTURE DISCUSSIONS AND SECURE
ADDITIONAL LEASES IN SACRAMENTO BASIN

 Negotiations around funding and drilling 1+Tcf Dempsey conventional natural gas well are
at an advanced stage
 Placement gives SGC capacity to secure new leases in highly prospective and underexplored
part of Sacramento Basin

Sacramento Basin‐focused conventional gas producer and developer Sacgasco Limited (ASX: SGC)
(“Sacgasco” or “the Company”) wishes to advise that it has completed a placement of 17,397,546
fully paid ordinary shares at a price of 2.5 cents each to raise $434,938 (before costs). The Company
has also issued 8,698,773 unlisted options for zero consideration exercisable at 3 cents each on or
before 30 September 2017.
The funds raised from the placement will provide the Company with financial flexibility to actively
continue negotiations with potential Joint Venture partners regarding the near‐term drilling of the
1+TCF Dempsey conventional gas prospect in the Sacramento Basin. Sacgasco is negotiating with a
number of parties with some discussions at an advanced staged.
Sacgasco recently announced it had farmed out a working interest in its operated onshore California
Area of Mutual Interest (“Cal AMI”) to private company Bombora Natural Energy Pty Ltd (“BNE”)
(see announcement 15 August 2016). As part of the agreement, BNE will earn a 20% working
interest in up to nine natural gas prospects that have already been mapped in the AMI via staged
funding of up to A$400,000.
Together with the BNE farmout, the funds from this share placement will allow Sacgasco to secure
additional strategic leases over already mapped gas prospects. The AMI lies within an area of
approximately 250,000 acres in the Sacramento Basin which the Company believes is highly
prospective for conventional natural gas. The Company has commenced the leasing process over
new prospects.
Sacgasco’s Managing Director Gary Jeffery said: “The Board of Sacgasco is very encouraged by the
recent pick‐up in activity in the US energy sector, particularly in natural gas markets. Sacgasco holds
the key to what it believes is a major conventional natural gas province right on the doorstep of the
seventh largest economy in the world, California, a state that attracts premium pricing for natural
gas, and sources over 90% of its natural gas supply from interstate.

We have been very encouraged by the level of support for this modest capital raise.
Our technical work shows that the Sacramento Basin holds significant untapped potential and we
are intent on securing more leases in the Basin. Sacgasco is on its way to unlocking real value for
shareholders as we progress along a clear pathway towards drilling Dempsey.”


The issue was made pursuant to Section 708 of the Corporations Act 2001 (Cth) (Corporations Act)
and Rule 7.1 (6,344,868 shares and 8,698,773 options)) and Rule 7.1(A) (11,052,678 Shares) of the
ASX Listing Rules.
Disclosure under ASX Listing Rules 7.1A.4(b) and 3.10.5A
In accordance with ASX Listing Rules 7.1A.4(b) and 3.10.5A, the Company makes the following
disclosures in respect of the Shares issued pursuant to Listing Rule 7.1(A):
The dilutive effect of the Shares on existing shareholders, as a result of the issue of Shares under the
placement, is as follows:
Shares Dilution
Shares on issue prior to Placement 111,562,156
Shares issued under Listing Rule 7.1 6,344,868 5.38%
Total Shares on issue after Listing Rule 7.1 issue 117,907,024
Shares issued under Listing Rule 7.1A 11,052,678 8.57%
Total Shares on issue following Placement 128,959,702
Due to the relatively small amount of capital being raised, the Directors formed the view that the
time and cost involved in a pro rata rights issue did not warrant raising the funds by way of a rights
issue or other type of issue in which existing ordinary security holders would have been eligible to
participate. No underwriting arrangements were applicable to the placement.
For and on behalf of the Board of Sacgasco Limited
Gary Jeffery
Managing Director