An Australian oil firm has been granted consent to drill an onshore well in California.
Sacgasco Limited, the operator of the Dempsey 1-15 well in the Sacramento Basin, has been granted a permit for the 1Tcf prospect.
The well will be drilled to a depth of 10,500 ft in the coming weeks.
The Dempsey natural gas prospect is Sacgasco’s flagship prospect.
It has the potential for near-term natural gas production because it is located below existing production facilities. It is anticipated to take around 45 days to drill with drilling and completion costs estimated to be between $3 and $5.5 million.
The prospect is being developed in a joint venture with Empyrean Energy.
Tom Kelly, Empyrean chief executive, said: “Having recently increased our interest in the 1Tcf+ natural gas Dempsey prospect to 30% we are eager for Sacgasco to commence drilling.
“The well, which will drill through seven stacked conventional reservoir targets, is now being prepared for drilling and we look forward to providing updates on progress made in the coming weeks.
“This is a very exciting time for Empyrean, having just announced a gas discovery offshore Indonesia with a stabilised flow rate of 10.9 million cubic feet of gas per day, we are looking to build on the momentum behind the company and in the process realise the full potential of our portfolio of high quality assets.”
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