Sacgasco Limited announced commencement of drilling the first of 3 planned oil development wells. The Tabers 16-2-8-17 well was spudded by operator Blue Sky Resources Limited on April 2, 2022. This is the first of 3 oil development wells that Sacgasco intends to participate in drilling in SGC's Alberta Plains Asset.

The drilling program will be funded from the net cashflow resulting from production in Canada. The planned development wells are: 1. Tabers 16-2-8-17: Targeting Proved Undeveloped Reserves 2. Tabers 1-2-8-17: Targeting Probable Undeveloped Reserves 3. Killam 16-34-41-13: Targeting Probable Undeveloped Reserves The wells are considered independent of each other. The cost the 3 well development program is estimated at AUD 2.7 million (gross), which will be AUD 560,000 net to Sacgasco.

The company anticipates a gross increase in production of 200 BOPD, which is 40 BOPD net to SGC. Given the current benchmark oil price of around USD 100/bbl, these wells are projected to pay back the capital expenditure in less than 12 months.