Take-off for Sacgasco as shares more than double in a week
Natural gas developer Sacgasco continued to soar in price on Wednesday after a drilling update and the release of financials.
By mid-morning, Sacgasco’s (ASX:SGC) shares had risen 134 per cent for the week, up from 9.2 cents on Friday to as high as 22c today. Thirty million shares had changed hands.
The ASX issued SGC with a speeding ticket on Tuesday, to which the company responded it had no information to disclose.
Yesterday it updated the market with drilling results from its Sacramento Basin site off the coast of California, showing further evidence of gas, building on last Friday’s news of the “most significant gas shows to date”.
Drilling was yet to reach the well’s target depth.
“All potential reservoir zones interpreted from mud logs have been associated with significant gas shows,” Sacgasco’s managing director Gary Jeffrey told investors.
“Updates will be provided on meaningful results from the evaluation of the target sandstone reservoirs.”
SGC reported a $5 million loss in the half-year to June 30 and had $1.1 million in the bank.