Empyrean Energy Share Discussion Threads

[ciminna] 11/12/2017 07:58

A post higher up on the thread....so could be totally incorrect! What are the expected timeline?

[terry hardacre] 11/12/2017 07:57

Where are you getting a couple of month's from?

[ciminna] 11/12/2017 07:52

So from what I've read am I right that for Dempsey they need a further licence which could take a couple of months and no further zones will be tested until then?

[paleje] 11/12/2017 07:45

Anybody wants the actual pdf Sagasco released, easier reading, same facts though:-

[petercrosby] 11/12/2017 07:35

They might as well apply for permission to frack Alvarez while they are on then no need to hang around if it's a requirement

[cmackay] 11/12/2017 07:34

I've been back in England less than an hour. I didn't miss the snow at all.

[newtonaj] 11/12/2017 07:30

This surely should give a massive bounce to the share price It reads really well for the future

[desertrat2] 11/12/2017 07:29

i think that things are going to change very much for the better hereon. Well done anyone managing to catch the low on Friday, i would be surprised if that opportunity rolls around again in the new future. if it does all poised for a top up here. OT snow in the UK looks amazing ! miss that

[deanroberthunt] 11/12/2017 07:28

I'll be filling my boots this morning

[oilforex] 11/12/2017 07:14

Extremely interesting that they have released this. So as predicted, this reads below the X1 reservoir being tested.

[harrissen] 11/12/2017 07:07

Sacgasco Limited
ABN 83 114 061 433
Unit 14, 210 Bagot Road, Subiaco, WA, 6008.
T [phone] E [e-mail]
DEMPSEY AND THE SACRAMENTO BASIN


Q&A with Gary Jeffery, Managing Director of Sacgasco Limited (ASX: SGC)
1. Gary, Sacgasco’s announcement Friday that you are putting the Dempsey 1 well into production
concludes a drilling program that commenced in August. What’s your take on the outcomes
delivered from Dempsey so far?
 Firstly this is just an interlude in the evaluation of The Dempsey well. We are able to adjust
our evaluation of the Dempsey well because of the proximity of the well to pipelines
connecting to a very large and attractive natural gas market. The pipeline company has already
sampled the gas, and connection work is underway for an extended production and sales test.
 I am aware that the testing and understanding of Dempsey results are taking somewhat longer
than expected. But to put this in context, so far we have successfully flowed clean dry gas
from the only two high‐pressure intervals tested and these straddle only 700 feet (around
15%) of over 4000 feet of interest in the well below the field producing levels. By the way the
age equivalent of these Dempsey and the older Alvares intervals of interest are up to 40,000
feet thick in the Basin, and similar‐age gas traps in the subsurface of the basin are amongst
the least explored in the world. Hence our intense interest.
 The production will provide us with extensive information on the potential of this zone and
will allow us to design a better stimulation program, as well as refine testing programs for
other intervals in the well. Once the well goes into production we will monitor flow rates to
see if they improve as gas reservoirs further from the well bore are accessed.
 The Operator Sacgasco recommended to its co‐ventureres that the prudent course of action
was to let this zone flow to sales for a short period of time while we looked into some reservoir
stimulation work to test how we could improve gas flow rates.
 The interval tested to date would not be able to be accessed in this well if we decided to add
perforations to the second interval tested or alternatively decided to test shallower intervals
of gas shows and potential sandstone reservoirs. In our view the potential of the lower zones
was too great to walk away from.
 Planning for the reservoir stimulation work is already underway with an aim to undertake the
work within the first quarter of 2018. The intervals tested to date are interpreted from
information gathered to be a combination of relatively thin permeable sandstones, shales, and
possibly fractures filled with highly‐pressured, clean dry natural gas and no water. The
permeable zones may be connected to thicker zones away from the well bore. Effective access
to such gas reservoirs is not possible with normal horizontal perforations at the rate of 6 shots
per foot. Stimulation is designed to increase the permeability for natural gas to flow by
creating interconnecting fractures up and down to connect a much greater volume of
permeable and porous gas‐filled reservoirs in the proximity of the horizontal perforations. We
are doing this work expecting to see very significant improvement in flow. Otherwise, why
would we bother? Depending on the results, we may test other zones to add to production
after we do this reservoir stimulation work. As expected before drilling, we have confirmed
that there is a tremendous amount of optionality in our efforts to fully assess the Dempsey
gas discovery. As various aspects of the discovery are confirmed and sustained higher rates
of production are established, the information gained will in turn help calibrate and map out
future appraisal and development plans along with other exploration appraisal drilling.
2. So have your observations / conclusions to date about Dempsey changed?
 It is our view that Dempsey is a large, clean dry natural gas charged structure without any
observed water with the potential for significant production below the Rancho Capay field
reservoirs.
 In my view, Dempsey is already a very significant natural gas discovery. There already is and
will be increased competition for other prospective areas in the Basin and consequently we
must, in the interests of investing shareholders, protect some of the detail that does not have
direct monetary impact on shareholders, but which provides us with competitive advantage.
The evaluation and learning process for us all is continuous and exponentially material due to
the under‐explored nature of the Basin.
 To summarise:
o We already have a significant natural gas resource at Dempsey in the lower interval
of interest;
o We expect to be soon producing quality gas and seeking to improve flow rates;
o The testing of Dempsey has only just begun and my views of its potential are perhaps
changed in technical detail, but not diminished otherwise.
 Moreover, the more important message is that we are the first company in almost 100 years
of exploration to prove up the older structures in the Sacramento Basin, and the associated
potentially huge petroleum system; and, furthermore we are poised to lead the appraisal and
development of it.
 For a small company, Sacgasco has an impressive lease and infrastructure base in the Basin
which we have built up over the last few years so we are in the box seat here.
3. So what’s next for Sacgaso Gary, and what should investors be looking forward to in the nearterm?
 Firstly, we are actively working to have Dempsey 1‐15 well in production selling natural gas in
the next couple of weeks adding to our existing revenue base.
 We are concurrently designing and permitting the next reservoir stimulation phase of work at
Dempsey and based on recent examples expect to be ready for that work early in 2018. This
stimulation work is expected to be consistent with Sacgasco’s efficient and effective operating
philosophy, and to be an affordable process for Sacgasco and its co‐venturers. As such, we are
funded to carry out this work.
 We continue to lease oil and gas mineral rights based on what we have learnt at Dempsey.
 Through the advantageous JV funding agreements arranged through farmouts with our coventurers,
we will look to commence work testing the current well bore for use to evaluate
the existing gas shows at Alvares early in 2018.
 We also are continually reviewing our opportunities to increase gas production from wells and
equipment acquired earlier in 2017.
 All these activities are a clear indication that we see huge upside in the Sacramento Basin.
 We continue to run a dual strategy of developing our larger targets and building steady gas
supply from the field production levels using our existing 27 well bores and associated
equipment and pipeline conections.
 So the takeaway is that we are more confident than ever in the portfolio, we know much more
about what is shaping up to be a new, large conventional (albeit tite in places) reservoir
petroleum system in the Basin, and we are systematically going about unlocking the related
value for our shareholders.

[deanroberthunt] 11/12/2017 07:06

if the fracking works, then it's a "significant gas" find....

[terry hardacre] 11/12/2017 06:31

Well worth reading the GJ Q&A - which has been posted over at LSE; the picture has significantly improved here despite the market shudder - the share price reaction yielding quite an opportunity for anyone in a position to take advantage.

[cliveas] 11/12/2017 04:10

Q&A Dempsey and Sacramento Basin

[cliveas] 11/12/2017 03:52

Q & A session released on ASX with GJ!

It's very good and Dempsey is looking very very good!

GL.

[bushman1] 10/12/2017 22:58

Paleje, as of a few moments ago, OilBaronUK also posted, well worth reading.

People need to remember Gary Jefferies doesnt take a salary from the company, in fact SGC has one of the lowest cash burn rates on ASX.

People need to remember that Dempsey is a *confirmed* significant gas discovery with only 2 of the 5-6 zones tested to date. Both flowing naturally to surface. Due to the extreme high pressure fracking the tight rock structure will almost certainly yield significant increases inflow rates. Id expect a month or two to obtain the permit required. Frack each zone this well could be producing 20mmcf+ and 1+TCF potential size is looking very likey given the high pressures.

Dempsey drilling is currently running under budget.

SGC is funded from the recent oversubscribed and increased fundraise (they raised mor emoney than they were looking for).

Alvares is also fully funded by the JV partners as they paid over their % carry, the re-entry and testing of this well is nowhere near the cost of drilling a new well. Its a completely different rock structure to Dempsey and a much older formation. Could news on this progressing through a spanner in the works for short term sellers?

All in all, you have the traders exiting and the smart money moving in here.

Good luck all. Not arguing with trolls. It is what it is and I see significant opportunity from these low low levels.

[bushman1] 10/12/2017 22:56

Very good posts today on the Hot Copper bb. It's free btw.

[chicken charlie] 10/12/2017 20:03

I think it's time to buy again THe gas is there only aguestion of time get this zone fracked and tested and move onto the other zones

[terry hardacre] 10/12/2017 19:42

Agreed paleje - have had a look and some very interesting stuff posted by this chap; puts forward a very compelling and well argued case for the prospects moving forward.Can also recommend people take a look.

[paleje] 10/12/2017 19:01

Poster on hot copper called ride, seems to be clued up and has some interesting points which sound logical to me (non technical) he's made several posts since Friday, worth a read I think, its positive not negative:-

[nexus7] 10/12/2017 17:32

As far as I know it´s the first time. I found this info yesterday evening..

[jacksspitfire] 10/12/2017 17:24

Is this info dated 2012 currently of interest here ?.... just to save me spebdibg time ferreting through

[nexus7] 10/12/2017 17:18

CALIFORNIA TO PREPARE EIR FOR FRACKING AND OTHER WELL STIMULATION TREATMENTS



You will find many links under Related stories at the above address.
E.G.
FINAL CALIFORNIA FRACKING WORKSHOP SCHEDULED FOR JULY 25 IN SACRAMENTO

…The DOC expects to start the rulemaking process by later Summer or early Fall 2012, and welcomes public comment on that process. Comments may be submitted by email to …

[jacksspitfire] 10/12/2017 17:11

I'm not worried one bit.. you dont frac for the sake of fracing