Sacgasco begins sales from Dempsey gas project in Sacramento Basin, US

Sacgasco has started natural gas sales from the Dempsey gas project located in the Sacramento Basin in California, US.

The company noted that the Dempsey 1-15 well is flowing natural gas to sales pipelines at a combined rate of 1,300mcf per day.

According to the company, the well is producing pipeline quality gas from Ranch Capay Field Level Kione Sandstone and the combined older Zones 2, 3 and 4.

The objective of the well configuration is to allow reservoir assessment for carrying out additional development activities from the various production levels.

Sacgasco intends to integrate this information with geology and seismic data to assess more production options, including reservoir production enhancement through fracture stimulation, and alternative deviated well configurations.

The company is also focused on the connection of several idle wells to add to its production profile.

Sacgasco managing director Gary Jeffery said: “We have more than doubled gas sales in the Sacramento Basin with Dempsey on stream and more gas is being sourced.

“The contribution of other wells we are working on connecting can add materially to this. The quality of the natural gas from all zones tested in Dempsey enhances marketing of the gas production.

“Concurrent to our production growth strategy, we are assessing ways to access the large gas reservoirs that exist below our Sacramento Basin production. Recent drilling tells us conclusively that we are sitting on huge gas potential in the Northern Sacramento Basin, and we have the added advantage of near-term cash flow to support our activities.”

The Dempsey project is operated by Sacgasco with a 50% interest, with Empyrean Energy, Pancontinental Oil and Gas, and Xstate Resources holding the remaining stake.

Empyrean CEO Tom Kelly noted that sale of the gas will bring cash flow for the joint venture partners in the project.