Developers remain “optimistic” about an onshore gas well in California despite initial tests showing “sub-commercial” flow rates.
Australian firm Sacgasco (ASX:SGC), who is the operator of the Dempsey 1-15 well in the Sacramento Basin, is carrying out flow-testing.
The well’s lowest zone, a thin sand with poor reservoir characteristics based on the wireline logs, has been perforated and has flowed clean, dry natural gas and no water.
However the gas has flowed at rates that are sub-commercial at current gas market prices.
Analysis of the zone, and its full potential, remain at an early stage.
The tested zone has been isolated and preparations are underway for the next stage of testing which will target the next shallower zone of gas shows.
Dempsey is a large structure mapped with 3D seismic and interpreted by Sacgasco to have the potential to hold a prospective resource of over 1 Tcf of gas in up to seven stacked target reservoirs.