The Sacramento Basin has significant development upside because underlying gas potential has been overlooked by operating companies which produce from the widely recognised existing shallow petroleum systems that have produced over 11 Trillion cubic feet (Tcf) gas.
SGC is targeting substantial gas production to initially supply the 2.5 Tcf per year demand of the local Californian gas market, and later supply to the burgeoning North American LNG market. The Company’s increasing gas production complements an extensive portfolio of appraisal and exploration stage gas prospects; including a number of multi-Tcf opportunities in the proven Sacramento Basin.
PEP11 – SYDNEY BASIN PROJECT
Sacgasco has an option to acquire an interest in, and to operate Exploration Permit PEP11. This is the only permit in the Offshore Sydney Basin making it a unique exploration opportunity. The area is interpreted to be highly prospective for natural gas. The only drilling in the off-shore Basin, was at New Seaclem #1 in 2010. This well, which was only drilled to 750 metres, confirmed the presence of early mature Permian sediments within the offshore basin. The sedimentary depocentre offshore in the Sydney Basin is analogous to the Upper Paleozoic sediments in the gas producing Cooper and Bowen Basins onshore Australia.
Sacgasco sees the potential for a large multi-TCF prospect inventory in less than 150 metres of water. PEP11 is ideally located to leverage off significant shortages in the East Coast Gas Market, with the primary prospect located only 60 kilometres from Newcastle’s natural gas pipeline network (Pipelines shown in map above as red lines).
Our strategy is to acquire 3D seismic prior to drilling, which could be as early as 2020/21.