Red Sky Energy is putting in place plans to develop its newly acquired Yarrow Gas Project.
Red Sky gained possession of Yarrow earlier this year when it purchased a group of licences in the Cooper Basin from Beach Energy known as the Innamincka Dome Project.
Along with the nearby Flax oil field, Red Sky has canvassed plans to restart production at the Yarrow project, which has a 2C contingent resource of 566 million m3 of natural gas.
With a goal to start production within three years, Red Sky intends to acquire a 3D seismic survey to increase field definition, complete a field development plan, drill a series of wells and deliver production infrastructure that will include a pipeline as part of its plan to deplete the gas resource.
The project is located within 25 km of the existing east coast gas pipeline grid and the company believes it can finance its project pipeline for $12.3 million.
Red Sky Managing Director and CEO Andrew Knox said there was solid potential in the project and the company expected to be able to debt-finance the pipeline.
“We are targeting a five-year operation designed to deplete the existing contingent resource which, based on current gas prices, would deliver around $200 million in revenue,” he said.
“The Yarrow Gas Project complements our Flax Oil and Gas Project by providing potential for additional early revenues built on very low capex.”
Red Sky is 100 per cent owner of all six Innamincka licences it acquired from Beach.
For more information visit the Red Sky Energy website.
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