- Red Sky Energy (ROG) receives approval to begin operations at the Killanoola Oil Project in South Australia
- Approval was granted from the Government of South Australian Department for Energy and Mining, following the inspection of an above-ground linear rod pump on the site
- The company plans to complete a short test run ahead of an extended production to determine the quality of the oil and test enhanced oil recovery solutions
- Red Sky Energy last traded at 0.7 cents on July 27
Red Sky Energy (ROG) has received approval to begin operations at the Killanoola Oil Project in South Australia.
Approval was granted from the Government of South Australian Department for Energy and Mining, following the inspection of an above-ground linear rod pump on the site.
With the government approval, rod components can be checked and declared fit for purpose. From here, Red Sky will perform a short test run.
Should this be successful, the pump will be turned on for an extended production test so the company can determine more about the quality of the oil, the reservoir and test enhanced oil recovery solutions.
Once this test period is completed, Red Sky says it will re-enter the well to perforate the newly identified 37 metres of potential pay, which is anticipated to production rates significantly.
“The Red Sky team is very pleased to have received government approval to commence operations and test the rods at DW-1,” Red Sky Managing Director Andrew Knox said.
“Further approvals will be required as we progress, but next steps post this testing in the short term are recommissioning the pump and acquiring topside equipment.
“We are pushing to extract full value from the resources at Killanoola as soon as possible,” Andrew Knox said.
Red Sky Energy last traded at 0.7 cents on July 27.