2018 Xstates progression, page-6

Agentm, with respect, is making inaccurate claims re : Alvares.

The latest information from SGC : re Dempsey / Alvares can be found in the RNS of 11th December :

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.

AND re : Alvares

Through the advantageous JV funding agreements arranged through farmouts with our co‐ venturers, we will look to commence work testing the current well bore for use to evaluate the existing gas shows at Alvares early in 2018.


http://www.sacgasco.com/wp-content/...1-ASX-SGC-QA-Dempsey-and-Sacramento-Basin.pdf