Red Sky Energy Limited.
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Red Sky Energy Provides Pipeline Construction and Yarrow 3 Gas Well Update at Innamincka Projects
Progress on pipeline construction and promising results of Yarrow 3 gas well contribute to positive outlook for Red Sky Energy
In a recent announcement, Red Sky Energy Limited (ASX: ROG), an oil and gas exploration and development company, provided an update on the construction of the pipeline for the Yarrow 3 gas well at the Innamincka Projects. The announcement, released on May 29, 2023, sheds light on the progress made and outlines Red Sky Energy's plans moving forward.
Pipeline Construction Progress
One of the key highlights of the announcement is the progress made on the pipeline construction by Santos Limited (ASX: STO), the operator of the Innamincka Projects. The approximately 18 kilometre long pipeline will serve as a crucial link connecting the Yarrow gas field to the grid to the south. Construction is well underway, and the pipeline is expected to be completed by July 2023. This development signifies a significant step towards commercialising the gas resources in the region.
Promising Results of Yarrow 3 Gas Well
The announcement also detailed the highly promising results of the Yarrow 3 gas well, a pivotal component of the Innamincka Projects.
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Drilled in September 2022 to a total depth of 2,720 meters, the well targeted the Tirrawarra sandstone and the Patchawarra formation as its primary and secondary objectives, respectively. Encouragingly, the well confirmed a gas accumulation in the Tirrawarra sandstone, with a 2C contingent resource of 18 billion cubic feet (BCF). These positive results serve as a testament to the potential of the Yarrow gas field.
Plans for Selling Yarrow Gas
Red Sky Energy expressed its intention to capitalise on the success of the Yarrow gas well by actively pursuing options for the sale of its share of the Yarrow gas. As a 50% stakeholder in the Innamincka Projects, Red Sky Energy is free carried by Santos for up to $3 million for the drilling of Yarrow 3. This strategic move aligns with Red Sky Energy's goal of maximising the value and commercial viability of its assets.
By leveraging the expertise and resources of Santos, Red Sky Energy aims to secure a favourable outcome for the sale of its share of the Yarrow gas, unlocking additional value for the company and its shareholders.
Positive Outlook and Future Prospects
With the successful progress of pipeline construction and the highly promising results of the Yarrow 3 gas well, Red Sky Energy is well-positioned to capitalise on the potential of the Innamincka Projects. The company remains committed to advancing its strategies, which encompass optimising returns and creating value for its stakeholders.
In conclusion, Red Sky Energy's recent announcement demonstrates significant progress in the pipeline construction and highlights the promising results of the Yarrow 3 gas well. These developments contribute to a positive outlook for Red Sky Energy as the company actively seeks options for selling its share of the Yarrow gas. As Red Sky Energy advances towards maximising the value of its assets, shareholders can anticipate exciting opportunities and future growth.
*Disclaimer: This article provides a summary of the original Red Sky Energy announcement and is not a substitute for the full text of the announcement. *
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