Pancontinental Energy NL (PCOGF)

[DrillaHill]

Significant Gas Shows in unexpected reservoir at Dempsey

Dempsey Gas Shows Update (08/30/17)

Announcement to ASX 30 August 2017
Significant Gas Shows in unexpected reservoir at Dempsey
? Additional zone of significant gas shows in unexpected sandstone reservoir
? Drilling ahead below 2,300 m (~7,670 feet) to evaluate multiple remaining conventional sandstone reservoir targets in next 900 m (~2,900 feet) of drilling
? Dempsey is testing the largest undrilled structure in northeastern Sacramento Basin
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 is drilling ahead in 8 1/2” vertical hole.
Since the last update mud logs have indicated new zones of significant gas shows in improved reservoirs. These reservoirs are interpreted to be equivalent to sandstones seen in outcrop in the coastal rages to the west, but were not considered to be likely to be present in the Dempsey well.
Shareholders and investors are advised that the significance of these shows will become more apparent when the next wireline logs are run to more fully evaluate the intersected gas shows and reservoirs. This is planned after reaching the proposed total drilling depth of approximately 3,200 metres.
The Dempsey 1-15 well is currently drilling ahead below 2,300 m (~7,670 feet) to the highly under-explored deeper targeted reservoirs in the approximately 900 m (~2,900 feet) of remaining section to be drilled.
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%
Gary Jeffery, Managing Director of Sacgasco commented:
“We continue to be very pleased with the execution of the drilling. The results have been
broadly consistent with prognoses, however the present zone of shows is interpreted to be
from a regionally known, but unexpected target at Dempsey. An encouraging observation
about the drilling since setting 9 5/8” casing is that all potential reservoir zones interpreted
from mud logs have been associated with significant gas shows.
Further updates will be provided on meaningful results from the evaluation of the target
sandstone reservoirs spread across the interval to be drilled.”