- Red Sky Energy (ROG) has completed a petrophysical analysis in the southeast tenement of its Killanoola Oil Project in South Australia
- The analysis identified 16 metres of net pay at the prospect, marking a stark increase on the 1.5 metres originally estimated
- The explorer says the evaluation indicates a strong outlook for significant reserve growth at the tenement
- Based on this find, Red Sky is now working to re-determine the volume of oil in place and potentially associated reserves
- The market appears to have responded favourably to the announcement, with Red Sky shares up 50 per cent trading at 0.3 cents
Red Sky Energy (ROG) has completed a petrophysical analysis in the southeast tenement of its Killanoola Oil Project in South Australia.
The explorer says the evaluation has delivered a strong outlook for significant reserve growth from the “highly prospective” tenement acreage, which is located in the Penola Trough.
The petrophysical analysis — which examines physical and chemical rock properties, particularly in reservoirs — identified 16 metres of net pay at Killanoola SE-1.
It marks a stark contrast to the company’s original net pay estimates of 1.5 metres.
Based on the find, the explorer is working to revise geological and geophysical interpretations to re-determine the volume of oil in place, with planning underway in line with the licence work programme.
Should the test go as planned, it will allow Red Sky to book oil reserves associated with the tenement.
Red Sky Managing Director Andrew Knox said the result was very encouraging.
“We are incorporating the testing of this well into our initial work programme as we continue to determine and extract full value from the resources at Killanoola,” he commented.
The market appears to have responded favourably to the announcement, with Red Sky shares up 50 per cent trading at 0.3 cents at 10:44 pm AEDT.