Oz Sacgasco Not to Buy Sydney Basin Asset

Australia-listed Sacgasco has decided not to proceed with acquisition of RL Energy and its related farm in arrangement with respect to PEP11 in the offshore Sydney Basin, it said February 6.

In November last year, Perth-based Sacgasco had acquired the exclusive option to 100% of the issued capital of RL Energy, who have signed a farm in agreement with Asset Energy to earn a 60% working interest in exploration permit PEP11.

According to Sacgasco, the company board “concluded after extensive due diligence that the risks associated with the government regulatory procedures and complicated joint venture arrangements and associated time frames, make it a project that is not suitable for the company given the activity levels required for its Californian business.”

Sacgasco said it will continue to focus on growing production from its multiple projects in the onshore Sacramento Basin in California. The company is targeting substantial gas production to initially supply to the local Californian gas market, and later to the burgeoning North American LNG market.