SACRAMENTO BASIN

Sacramento Basin – Onshore Northern California

Sacgasco is intent on increasing production and exploring and expanding its robust portfolio of modest to large-scale natural gas prospects in the very attractive Sacramento Basin, located close to under-filled gas trunklines connecting US and Canada gas supplies to the Californian gas market.

The Company’s development strategy in the Sacramento Basin represents an opportunity to increase near-term supply to a California gas market with a significant local energy supply deficit. California’s gas demand is approximately 7 billion cubic feet per day, with local California gas production only contributing less than 10%.

Sacgasco has conducted regional exploration in a back to basics manner to uncover the world class potential of sediments that have been effectively ignored by the local gas industry for the last 20 or more years after the departure of the major operating companies.

The Sacgasco growth strategy is based on acquisition of producing wells and idle wells (with future potential) and associated infrastructure as ‘facilitators’ for appraisal, exploration and production.  The acquisition of complementary gas leases means that Sacgasco can choose from a portfolio of “1 to 10 Bcf” prospects targeting historical producing reservoirs; and “100 Bcf to Multi-Tcf” prospects and overlooked discoveries in the proven Petroleum Systems in older reservoirs of the prolific Sacramento Basin.

“Under-explored with
“Multi-Tcf” gas prospects”

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