- Sacgasco (SGC) has entered a trading halt ahead of an acquisition and capital raise
- Sacgasco is a gas explorer and producer that's focused on the Sacramento Basin in onshore California
- It is the main operator of the Borba 1-7 well — holding a 76 per cent interest while Xstate Resources holds the remaining 24 per cent
- Xstate has also entered a trading halt for the same reason — meaning the capital raise and acquisition are in relation to the well
- Positively, Sacgasco has received interest from potential partners to participate and fund Borba drilling — meaning the well will soon be a go
- Company shares last traded for 4.1 cents on Friday, November 13
Sacgasco (SGC) has entered a trading halt ahead of an acquisition and capital raise.
The Perth-based energy company will remain in the trading halt up until Wednesday, November 18.
Sacgasco is focused on conventional gas exploration and production in the Sacramento Basin which is located in onshore California.
The company is about to drill the Borba 1-7 well and claims this well is the next logical step in evaluating the world-class potential of the older sediments in the Sacramento Basin.
Sacgasco is the main operator of the well, however it shares an interest with fellow ASX-lister, Xstate Resources (XST). Sacgasco holds a 76 per cent interest and Xstate owns the remaining 24 per cent.
While exact details of the capital raise and acquisition are not yet known, Xstate Resources has also entered a trading halt inking an upcoming capital raise and acquisition. It is highly likely the funds will be put towards drilling efforts.
The company recently stated it's advancing farm-out and funding discussions to reduce its working interest exposure which will then enable it to drill the Borba well this year.
Positively, the gas explorer's most recent announcement stated it has received significant interest from potential partners to participate and fund Borba drilling — meaning the well will soon be a go.
"We will keep shareholders informed of progress as well as other opportunistic initiatives we are progressing," Sacgasco Managing Director Gary Jeffery said.
Company shares last traded for 4.1 cents on Friday, November 13.