Sacgasco Limited (ASX: SGC)
The State of California is best known for its tech whizz-kids and Silicon Valley geniuses, but what you may not know is that the Golden State is also home to largest oil producing US county outside Alaska.
Now, one ASX-listed gas developer is on the cusp of spudding its first well in the region and is searching for around 1 trillion cubic feet (Tcf) of recoverable gas.
This Australian junior is exploring in what is a largely overlooked and certainly underexplored area of the Sacramento Basin.
If it can deliver a flow rate of just 2.5 million cubic feet of gas per day, then the company will be well on its way to ranking in the top two for production in the Sacramento Basin. The company is already ranked at number 3.
With a tight share register three farm-in partners, who have collectively reduced this company’s capex requirement by around 80%, the company looks to be in the right place at the right time with a spud date in late July, just weeks from now.
Whilst the company aspires to big things, the good news it is already in production, with ten existing wells producing around 860 Mcf per day.
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This $20 million capped company is aiming to prove up in excess of US$1 billion in project value in a highly prolific area, in a country where demand for locally supplied gas could be significant.
Could this company help redress the supply balance in America’s biggest state and move towards a revaluation? Now is the time to keep an eye out for its next move.