Oz Sacgasco Gets Approval to Drill California Gas Well

Sydney-listed Sacgasco has received the permit from the California Division of Oil, Gas and Geothermal Resources for the drilling of the Borba 1-7 natural gas well in the Anzus project, it said December 9.

This well is permitted to drill to basement estimated at 9,100 feet (2,800 metres). Local administrative approval from Glenn County for the well was received in September this year, Sacgasco said.

The company is planning to start drilling in late January to early February. The well will be drilled vertically to test 16 stacked seismic anomalies in the interval from 2,300 feet (700 metres) to 9,100 feet (2,800 metres) depth. The prospective interval covers around 6,900 feet (2,100 metres), Sacgasco said.

“The Borba prospect is a big opportunity for Sacgasco and the next logical step in the evaluation of the highly prospective, under-explored older strata in the Northern Sacramento Basin,” Sacgasco’s managing director Gary Jeffery commented.

Sacgasco, as operator, has 46% interest in the project, Empyrean Energy has 30% while Xstate Resources has 24% interest.

“The California gas market is seven times the size of the Western Australian gas market and less than 10% of the California market is supplied locally. This enables Sacgasco to monetise all gas discovered almost immediately,” Jeffery said.