Pancontinental Energy NL (PCOGF)

[DrillaHill]

Drilling of High Potential Targets to Commence (08/25/17)

clients2.weblink.com.au/news/pdf_2%5C01888245.pdf

Sacramento Basin-focused natural gas developer and producer, Sacgasco Limited (ASX: SGC) (“Sacgasco” or “the Company”) advises that the Dempsey 1-15 well in the Sacramento Basin in California has recommenced drilling operations after installation and cementing of planned 9 5/8” casing at an optimum depth of approximately 1,760 metres (5,800 feet).

The casing depth was chosen, based on observed drilling parameters, for effective drilling control and protection of deeper reservoirs intersected in the well. The well is planned to be drilled vertically from this point to total depth.

The casing has protected, for future production, the previously announced 4 zones of gas saturated sandstones at field production levels. As previously reported, these sands are interpreted to contain sufficient gas to pay for the Dempsey well.

Extensive gas shows are expected while drilling Guinda sands and shales. It is expected that the section of Guinda will be approximately 400’-600’ thick and is expected to take 36-48 hours to drill prior to moving on to the deeper targeted objectives. The well is currently drilling ahead at the base of casing.

Multiple reservoir targets are predicted from regional geology and 3D seismic anomalies in the 1,300 m (~4,300 feet) of section to be drilled before reaching planned Total Depth of around 3200 metres in basement rocks.

Dempsey is drilling the largest undrilled mapped structural closure in the northeastern part of the prolific Sacramento Gas Basin and is interpreted to be optimally located to trap gas migrating out of gas generating areas located to the west and south.

Working Interests in the Dempsey Gas Project:
Sacgasco Limited (ASX: SGC) (Operator) 50%
Empyrean Energy PLC (LON: EME) 30%
Pancontinental Oil and Gas NL (ASX: PCL) 10%
Xstate Resources Limited (ASX: XST) 10%

Further updates will be provided on meaningful results from the evaluation of the target sandstone reservoirs spread across the interval to be drilled. Shareholders and investors are advised that the next wireline logging run is planned after reaching the proposed total drilling depth of approximately 3,200 metres.

fingers crossed - GLA!