Sacgasco confirms Borba 1-7 well could help meet California’s natural gas demands

Sacgasco ASX SGC gas flow Borba Ord Bend Gas Field Sacramento Basin onshore California
Sacgasco managing director Gary Jeffery said Borba 1-7 could meet some of California’s gas needs with demand high in the US state.

Results from flow testing of conventional Kione sandstones at the Sacgasco (ASX: SGC) operated Borba 1-7 well in onshore California has confirmed it could help satisfy the state’s growing appetite for natural gas.

The test work, which commenced in February, demonstrated well flow at a stable rate of 1.6 million cubic feet of gas per day on a 16/64” choke at 1,150 per square inch flowing tubing pressure.

Shut-in tubing pressure was 1760psi.

Based on the initial stable rates combined with pressure and analogue data from local well production histories, Sacgasco said it could bring the well into production at a rate of around 3mcfpd of gas.

“While much higher headline rates flow are achievable, [we] will adopt more conservative ‘good oil field practice’ to achieve optimum natural gas recovery over the life of the well,” the company said.

Flow test results were consistent with wells in the adjacent Ord Bend gas field which have had cumulative individual production rates of up to 3.5Bcf of natural gas.

The Borba 1-7 well is a joint venture between Sacgasco (66.67% interest) and Xstate Resources (ASX: XST).

Sacramento Basin

Located in the northern Sacramento Basin, Borba 1-7 is situated on an oil and gas minerals patch leased from private owners who receive annual fees or a 20% royalty rate when their wells are in production.

The well was perforated at four shots per foot over a 13ft interval at up to 3,898ft within pay intervals below 3795ft.

It flowed dry natural gas with no observed water.

Additional testing from the perforated interval will be carried out over the coming weeks to provide data for reservoir engineering management.

A gas sample will be acquired during testing, but Sacgasco said local experience and mud log gas analysis indicate the gas could be predominantly methane.

Natural gas demand

Demand for natural gas in California is high and the state currently imports over 90% of its average daily consumption of 7Bcf per day (roughly equivalent to Australia’s domestic natural gas consumption).

Sacgasco managing director Gary Jeffery said Borba 1-7 could complement the state’s needs.

“We are currently looking into ways of fast-tracking the connection of [the well] into the California sales gas pipeline system in order to generate revenue as quickly as possible,” he said.

“Confirming Borba 1-7 as a natural gas producing well is an excellent outcome and reaffirms our confidence that our underexplored Sacramento Basin leases have huge upside.”

Sacgasco recently sourced additional regional geophysical information for incorporation into its Sacramento Basin database to potentially provide more areas of focus for development, appraisal and exploration.

    Join Small Caps News

    Get notified of the latest news, events, and stock alerts.