Projects in USA California
Tulainyo Gas Discovery 13.33 %
Dempsey Gas Project 10.00%
Alvares Gas Discovery 15.00%
Pancontinental has secured the rights to or has already acquired interests in multiple projects in the onshore Sacramento Gas Basin in California, the State’s most productive gas region with over 11 Tcf gas produced.
The Company is mainly targeting conventional sandstone reservoirs in a gassy petroleum system beneath the traditional producing reservoir levels. Historically, mainly due to technological challenges during drilling, this other reservoir system has only been lightly explored. Thousands of wells, mainly gas producers have been drilled to the shallower or younger, producing reservoirs but only 16 wells have penetrated into the deeper section.
Pancontinental, consistent with its proven modus operandi applied in Africa, has done its own analysis of the petroleum systems in the area and believes that there is a very large, left-behind opportunity in the Early Cretaceous rocks of the Sacramento Gas Basin.
The Company is building a position with multiple projects, mostly drilling existing, improperly tested or untested gas discoveries. In addition, the Company is participating in the leasing of follow up exploration acreage at modest cost that will provide further growth opportunities in the event of drilling success.
There is an enormous domestic market for gas in California, 90% of which is imported into the State.
Sacramento Gas Basin Play Types
All the more advanced targeted plays are conventional in nature and involve submarine fan sandstone reservoirs in large structures in areas of the Basin where gas has previously been discovered or developed.
Gas System and Play Characteristics
- Dry gas
- Existing gas discoveries no further than 13km from major gas pipelines and other gas production infrastructure
- Shallow producing section immature and without source rocks
- Gas must be derived from the older section and dry gas of pipeline spec in Tulainyo and Alvares proves this
- Reservoirs originally deposited as deep water turbidites mostly sourced from the ancestral, granitic Sierra Nevada range to the east.
- Reservoir quality modelled to be superior at Dempsey than further west at Tulainyo and Alvares
Forward Work Program
The Company will drill a 10,200’ (3,000 metre) test well on the Dempsey Gas Project in August-September 2017, with the Graham Rig -9.
Commencing in October 2017, the Company will participate in drilling an appraisal well on the potentially giant Tulainyo Gas Discovery.
If this well is successful, the Company will have the option to drill a second and then a third appraisal well over the next + 12 months to fully earn its interest in the project.
With success in either project, appraisal and development activities are likely to be escalated and the Company’s other Sacramento Gas Basin assets, such as the Alvares Gas Discovery, positively re-valued.