Australian exploration and production company Sacgasco has reported commercial gas flows from the Dempsey 1-15 well.
The Dempsey project is located within the Sacramento Basin in California, US. Sacgasco is the operator with a 50% working interest (WI), while Empyrean Energy holds 30%, Pancontinental Oil and Gas has 10% and Xstate Resources has 10%.
Following testing, the Dempsey 1-15 well has flowed at a commercial rate of one million cubic feet of gas per day from the Kione Sandstone interval.
Sacgasco managing director Gary Jeffery said: “It doubles Sacgasco’s operated gross natural gas production deliverability in the Sacramento Basin without factoring in production from Zones 2 and 3, and potentially Zone 4.
“Increasing production and therefore cash generation is consistent with Sacgasco’s dual focus of growing production from our 27-well portfolio, and also drilling high-impact development, appraisal and exploration wells such as Alvares, Dempsey and other prospects, which exist across our seven gas fields and leased acreage in the Sacramento Basin.
“The Dempsey 1-15 well has a large column of gas-saturated rocks and we still have multiple options to further develop the well and the surrounding gas reservoirs, which will be assessed while Dempsey delivers valuable and material cash flow from production.”
Preparations are currently underway to test Zone 4 of the well. Sacgasco intends to combine production from all flowing tested zones in the Dempsey 1-15 well and report an aggregate flow rate.
As the gas sales infrastructure is already connected to the Dempsey well, the company expects to achieve very early cash flow.
The tested zone in the Kione is one of the four gas-saturated sand intervals previously announced by the company at the field production level at Dempsey.
