Sacgasco Set To Acquire Additional Working Interests In The Sacramento Basin Assets.

  • Jan 21, 2019 AEDT
  • Team Kalkine
Sacgasco Set To Acquire Additional Working Interests In The Sacramento Basin Assets.

On 21 January 2019, Sacgasco Limited (ASX: SGC) has entered into an agreement with Raven Energy Limited (ASX: REL) and Bombora Natural Energy Pty Limited (100% stakes acquisition in November 2018) along with its subsidiaries. The agreement was executed for acquiring various working interests in the Alvares, Dempsey, and Dempsey Trend Projects. These projects are situated in the Sacramento basin. 

Sacgasco Limited is under the energy sector. The company is involved in developing and producing natural gas across its key project Sacramento Basin located in California. The Sacramento Basin has produced over 11 Tcf (Trillion cubic feet) gas.

Sacgasco has received A$79,000 from Bombora to settle JV invoices, and in return, the company will issue 2 million Sacgasco shares to Raven Energy Limited. These shares will be voluntarily escrowed for 12 months from their date of issue.

The effective date of the agreement is 31 December 2018. As a result of the agreement, Xstate Resources will accept a certain interest in the Alvares Project, and Bombora also confirmed that they would not participate further in the Alvares project. The beneficial interests in the Alvares Project will be:

  • Now, Sacgasco Limited holds 50% working interests in Alvares Project (prior to 31 December 2018, the company owned 39% interest).
  • Empyrean Energy retains 25% working interests in Alvares Project.
  • Xstate Resources holds 25% working interests in Alvares Project (prior to 31 December 2018, the company held 21% interest).
  • Bombora already confirmed that they would not participate in the Alvares project. Till 31 December 2018, the company held a 15% interest in the

Bombora had also confirmed that they would not be involved in the Dempsey and Dempsey Trend Projects. The working interests in the Dempsey Project will be:

  • Now, Sacgasco Limited holds 60% working interests in Dempsey Project (prior to 31 December 2018, the company owned 50% interest).
  • Empyrean Energy retains 30% working interests in Dempsey Project.
  • Xstate Resources retains 10% working interests in Alvares Project.
  • Bombora already confirmed that they would not participate in the Dempsey project. Till 31 December 2018, the company held a 15% interest in the project).

The working interests in the Dempsey Trend Project will be:

  • Now, Sacgasco limited holds 46% working interests in Dempsey Project (prior to 31 December 2018, the company held 36% interest).
  • Empyrean Energy retains 30% working interests in Dempsey Project.
  • Xstate Resources retains 24% working interests in Alvares Project.
  • Bombora already confirmed that they would not participate in the Dempsey Trend Project. Till 31 December 2018, the company held a 10% interest in the project).

As stated by Sacgasco’s Managing director Mr. Gary Jeffery, that they are pleased to increase their interests and simplify the Joint Ventures in such a way that will allow the company to accelerate the activities. The company has already started the operations in Rio Vista gas field wells so that they can increase the production.

Stock performance: The shares of Sacgasco Ltd closed the day’s session flat at A$0.026. The market capitalization of the company stands at circa $6.83 Million with 262.53 million outstanding shares. In the time span of the previous six and three months, the stock delivered the negative return of 23.53% and 16.13%, respectively. During the last one month, SGC delivered the negative return of 16.13%.


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