- Red Sky Energy (ROG) has put forward a possible total of 6.4 million barrels of oil equivalent as potential contingent across its South Australian projects
- The explorer is currently undertaking petrophysical re-evaluation at its wholly owned Killanoola Oil Field Project, with results from these pursuits expected next week
- Recent reports from Red Sky have hinted the potential oil pay for the prospect could come in at net 16 million
- The Innamincka Dome prospects are at varied stages of production and exploration with Flax field reportedly producing 180,000 barrels of oil from six wells
- A significant portion of well appraisal costs at Innamincka Dom are set to be covered by oil and gas giant Santos
- Red Sky Energy shares are off 7.69 per cent, trading at 1.2 cents
Red Sky Energy (ROG) has put forward a possible total of 6.4 million barrels of oil equivalent as potential contingent across its South Australian projects.
The Australian oil and gas explorer provided investors with a summary of its current resources associated with its Killanoola oil field project and the Innamincka Dome projects.
Killanoola Oil Field
Red Sky’s wholly owned Killanoola Oil Field Project is undergoing petrophysical re-evaluation with the ASX-lister advising results from these pursuits can be expected next week.
ROG recently reported that petrophysical analysis shows potential oil pay for the prospect to be net 16 million.
The explorer saya it plans to test both wells within the prospect this year with Killanoola SE-1 set to be tested first to confirm petrophysical evaluations and
Killanoola-1-DW1 to be tested immediately afterwards.
Innamincka Dome
The Innamincka Dome projects comprise of six petroleum retention licences containing three oil and gas discoveries, namely, Flax, Yarrow and Juniper.
Red Sky reports the Flax field has has produced 180,000 barrels of oil from six wells after the production facility was shut in by a previous operator when oil prices were lower.
Santos (STO) is expected to fund 100 per cent of a horizontal appraisal well in the Flax oil and gas field, up to a maximum gross cost of $5 million.
The Yarrow -one discovery well and two appraisal wells have encountered gas with a fourth well lined up for drilling towards the end of this year, to target a highly prospective and untested part of the gas field.
Santos’ funding will also extend to these prospects, covering 100 per cent of the appraisal well up to a maximum gross cost of $3 million and 100 per cent of 50 square kilometres over the existing Yarrow gas field up to a maximum cost of $1 million.
Red Sky Energy say further subsurface work is being undertaken to fully evaluate the commercial potential of the Juniper prospect.
Red Sky Energy shares are off 7.69 per cent, trading at 1.2 cents at 1:48 pm AEST.