Sacgasco Limited announced that it has signed a farmout agreement with Bombora Natural Energy Pty Ltd. (BNE) for its large, conventional Dempsey Gas Prospect located in the Sacramento Basin, onshore California. Following this key milestone, the company plans to undertake a 3,200 metre combined appraisal and exploration well in April/May 2017. BNE will earn an initial 10% working interest by funding 20% of the Dempsey well program to a gross well cost cap of approximately AUD 5.2 million. BNE will also have the right, exercisable by notice to Sacgasco by 25 January 2017, to earn an additional 10% working interest by funding a further 12.5% of the drill program to the Cost Cap. All expenditure by BNE on the Dempsey well program in excess of the Cost Cap would be at its pro rata earned working interest. The farmin by BNE is subject to BNE achieving comfort on an ASX listing pathway in relation to which it is at an advanced stage.