Sacgasco Limited provided to its shareholders and the market with an update on the planned oil development wells. The first well, Tabers 16-2-8-17, has been drilled to Total Depth of 1729m including over 500m of near horizontal lateral which was drilled within the oil column. Free oil was observed in the mud pits.

The well will now be connected for production at which time, the company will have an Initial Oil Production rate. The planned development wells are: Tabers 16-2-8-17: Drilled to Produce Proved Undeveloped Reserves; Tabers 1-2-8-17: Targeting Probable Undeveloped Reserves; Killam 16-34-41-13: Targeting Probable Undeveloped Reserves. 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 (gross) which is 40 BOPD net to SGC. Given the current benchmark oil price of around $100/bbl, these wells are projected to pay back the capital expenditure in less than 12 months.