Red Sky Energy Limited.
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Why Did Red Sky Energy Receive Government Approval to Commence Production in South Australia?
Australian Oil and Gas company, Red Sky Energy, has received approval from the Government of South Australia to begin production at the Killanoola Oil Project. This marks a significant milestone for the company and its efforts to extract full value from the resources at Killanoola.
Government Approval Sets the Stage for Production Commencement
Red Sky Energy has announced that it has received approval from the Government of South Australia, specifically the Department for Energy and Mining, to commence production at the DW1 well within the Killanoola Oil Project. This is a major achievement for the company and paves the way for activity to begin immediately.
Contractors Mobilized to Start Operations
With the SA government's approval in hand, Red Sky Energy is wasting no time in getting the project off the ground. Contractors will be mobilized to the site in order to initiate production as soon as possible. This efficient approach ensures that the company can capitalize on the potential of the Killanoola oil field.
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Sale Agreement Secured for All Crude Produced
In a strategic move, Red Sky Energy has already signed a sale agreement for all the crude oil that will be produced from the Killanoola oil field. This agreement is with Viva Energy Australia, a prominent player in the energy sector. The sale of the crude oil will be subject to specified quality requirements and arrangements have been made for delivery to Viva Energy's Geelong refinery, approximately four hours southeast of the project site. Pricing for the crude oil will be benchmarked against dated Brent.
Background: The Potential of the Killanoola Oil Field
The Killanoola Oil Project, located in the Penola Trough in South Australia, has attracted significant attention due to its potential. A Discovered Petroleum Initially In Place (PIIP) report was updated following the acquisition of 3D seismic data. This report, conducted by Global Resources & Infrastructure Pty Ltd, revealed additional net pay in the Killanoola SE-1 and Killanoola-1 DW-1 wells, resulting in an updated estimate of the Discovered PIIP for the project. The PIIP is now estimated to be potentially up to 135. 5 million barrels of oil, a significant increase from the initial estimate of 93. 0 million barrels.
Moving Forward with Production
Red Sky Energy's approval to commence production at Killanoola DW1 marks a turning point for the company and its ambitious oil project. With contractors mobilized and a sale agreement in place, the stage is set for extraction operations to begin. This development not only positions Red Sky Energy as a key player in the energy market but also signifies the potential economic impact that the Killanoola oil field can have in South Australia.
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