Red Sky Energy Ltd

Yarrow 4 spudded on 31 August 2026, about 10 days of drilling expected, with Yarrow 5 to follow from the same pad. This starts the two-well Yarrow program (Red Sky 20%) after weather delays from the July target; results are still to come.

drilling spud

Rights issue closed with acceptances for 2,461m shares ($2.46m); the remaining 1,687m shares ($1.69m) were shortfall, covered by the underwriter. Related parties took up in full. All shares issued 25 May, completing the ~$4.2m raising at 0.1c.

capital raising announcement

Red Sky signed a binding AFE with Santos for the Willowie appraisal well in PRL18, next to Yarrow. Gross cost is about A$8.7m, Red Sky's 20% share about A$1.75m. Internal estimates are 2.13 MMscf/d initial rate and 3.09 Bcf recovery (100% basis, P50); not guaranteed.

farm in farm out agreement

CPS Capital has fully underwritten the ~$4.2m 2-for-3 rights issue at 0.1c, and entities tied to Knox and Wing will sub-underwrite $1.0m in total. The board cut directors' fees and salary by 25% and reduced staff. This firms up the March raising's funding.

capital raising announcement

Red Sky signed a binding AFE with Santos for two Yarrow development wells, keeping its 20% interest; the first well is expected to start imminently. Its share is about $2.0m, funded by the $1.0m placement and the rights issue. Follows the March capital raising.

farm in farm out agreement

Red Sky raises $1.0m via a placement of 1,000m shares at 0.1c, plus a 2-for-3 rights issue at 0.1c to raise up to ~$4.2m. Funds go to three Santos-operated Innamincka wells, Killanoola workover and working capital. Issue price is well below the 0.8c 2021 placement. Directors take 200m placement shares, subject to shareholder approval.

capital raising announcement

Yarrow 1 began producing on 15 November 2025, earlier than guided, at an initial ~2.4 MMscf/d against a 1.6 MMscf/d AFE P50 expectation. Early rates are not long-term. Resolves the months-long delay; Red Sky holds 20%.

production update

KN2 at Killanoola reached 1,044 m; logs show hydrocarbons in the Upper Sawpit Sandstone but with low permeability and high water saturation, similar to earlier wells. Drill stem tests were skipped and the well was cased and suspended; stimulation is under review. A disappointing appraisal result.

drilling result

KN2 at Killanoola was spudded on 24 October 2025, ending the months of approval and rig delays. The surface hole was drilled and cased to about 365 m. The 8-1/2 inch production hole is planned to about 1050 m. Red Sky has 55% of the well.

drilling spud

Angola's parliament ratified the Block 6/24 Risk Service Contract and a formal signing ceremony was held. Red Sky keeps its 35% interest (Sonangol 50% operator, ACREP 15%). Clears the way for JVOA finalisation and a work programme; resources remain 5.1 MMbbl net 2C contingent, 11.0 MMbbl 2U prospective.

material agreement

Binding farm-in for Killanoola's KN2 well: Condor Energy, Chawla and VB Energy fund 75% of drilling to earn 45% of the well. Red Sky keeps 55% of KN2, 100% of the rest of the licence and operatorship. Spud targeted late June quarter at the earliest, subject to approvals.

farm in farm out agreement

Maiden independent (PetroAus) estimates for Angola Block 6/24: Cegonha net contingent resource (2C) 5.1 MMbbl, 3C 10.8 MMbbl, plus net prospective 2U 11.0 MMbbl across three prospects. Delivers the resource review commissioned earlier; volumes are unrisked and no reserves are booked.

resource reserve update

Yarrow 1 was fractured in two stages; flowback finished at about 1.8 MMscf/d and 87 barrels of water a day. That matches the pre-frac test rate and is in the low half of the 1.6-3.6 range. Online target slips from Q2 to Q3 2025, pending flowline approval.

flow test result

Red Sky signed a Risk Service Contract on 31 December 2024 for a 35% interest in Block 6/24 offshore Angola, alongside Sonangol E&P (50%, operator) and ACREP (15%). It is the company's first Angola asset, with a possible commercial oil discovery, Cegonha. It needs Angolan parliamentary ratification, expected within about 90 days.

asset acquisition disposition

Santos will start the Yarrow 1 re-entry in early November 2024. A September flow test gave about 1.8 MMscf/d with high wellbore skin, so fracture stimulation is planned, targeting 1.6-3.6 MMscf/d. Downhole work due by Jan 2025, operational Q2 2025. Yarrow 3 receipts total $3m.

drilling scheduled

Killanoola DW1 flowed oil at an initial 62 bbl/day, but a downhole pump failure halted the test; contractors demobilised and a new pump awaits 2024 work. Separately, first Innamincka revenue was received for November gas sales to Origin.

production update

South Australian government approved production from the existing pay zone at Killanoola DW1, with contractors to mobilise immediately. This clears the approval step that was holding up production under the Viva Energy sale agreement.

regulatory community update

Transportation, processing and product-sale agreements for Yarrow were finalised with the Cooper Basin joint venture (SACBJV). Red Sky will be reimbursed for transferring the southern 4km of flowline, which it says offsets a significant portion of farm-in costs. This clears the commercial agreements flagged earlier.

material agreement

Red Sky signed an umbrella gas sales agreement with Origin Energy, intended to cover all its Yarrow gas until 1 January 2026 on a take-or-pay basis, sold at Moomba. This sets the buyer for Red Sky's first revenue, following the pipeline completion.

material agreement

Red Sky signed an agreement to sell all Killanoola crude to Viva Energy, delivered by road to its Geelong refinery and priced against dated Brent. This resolves the long-running offtake gap. Government approvals are still needed before DW1 production starts.

contract award

Santos completed the Yarrow pipeline and first gas from Yarrow 3 has begun, with output ramping up gradually. Red Sky's first revenue is expected in Q3 2023 once commercial agreements are finalised, which are still under discussion.

production update

New 3D seismic interpretation lifts Killanoola's best-estimate oil in place to 135.5 mmbbls, up 45.7% from 93.0 mmbbls. The low case fell to 28.9 mmbbls and the high rose to 157.4. Production still needs an offtake agreement and government approvals.

resource reserve update

Santos and Red Sky agreed to build an ~18km pipeline connecting Yarrow 3 to the grid, with Red Sky revenue expected from Q3 2023. Pressure data shows connected volume >1.7 BCF. The Flax horizontal well is swapped for A$5m of investment in the Yarrow 3 flowline.

material agreement

Yarrow 3 frac completed as planned, with post-frac flowback at a stable rate of about 5.0 MMscf/d (790psi wellhead pressure, 36/64" choke). Management is 'extremely pleased'. Volumes are still to be assessed through production logging and pressure analysis.

flow test result

Yarrow 3 reached 2,748m and preliminary logs show gas in both the Tirrawarra sandstone and Patchawarra formation, with some results above 8% porosity and 50% hydrocarbon saturation. The well will be cased and suspended as a potential producer. Flow rates are not yet known.

drilling result

Santos began drilling the Yarrow 3 gas appraisal well on 15 September 2022, after months of delays. Planned depth is about 2,700m over two weeks, with Red Sky free carried up to $3m. Pipeline route is now approved; Yarrow 2C resource is 18 bcf.

drilling spud

Independent report lifts Killanoola best-estimate oil in place from 7 to 93 mmbbls (up 1228%), and net 2C contingent resource from 2.8 to 27.9 mmbbl. Lab tests showed a highly waxy crude (pour point 36°C), so recovery factor was cut from 40% to 30%.

resource reserve update

Killanoola-1 DW-1 flowed live oil with no water to surface from the existing 5m of pay, averaging 40 bopd. It is the first oil from the field since Red Sky bought it. Oil samples will be collected and the rate raised gradually.

well test result

Placement and share purchase plan completed, raising $5.1m before costs at 0.8c. The placement was 401.78m shares for $3.214m; the SPP drew 277 applications for $1.84m, short of the $4m target. Funds go to Killanoola seismic and drilling.

capital raising announcement

Red Sky raises $3m through a placement of 375m shares at 0.8c, a 20% discount, and proposes a share purchase plan of up to $4m at the same price. Funds go to Killanoola seismic, drilling and new opportunities. Dilutes existing holders.

capital raising announcement

South Australian energy department approves operations at Killanoola, resolving the pending approval to test. Work starts with checking the DW-1 rods, then recommissioning the pump. A rig is to follow to perforate both wells. Further approvals will be needed.

regulatory community update

Independent petrophysical review finds a potential extra 37m of net oil pay in Killanoola-1DW-1, on top of 5m already perforated. Follows the 16m SE-1 result. Testing could allow reserves to be booked, but nothing is yet proven by flow.

well test result

Petrophysical analysis of Killanoola SE-1 (drilled 2011) shows 16 metres of net oil pay, against original estimates of 1.5m. Oil in place is being re-evaluated, and a perforation test is planned that could allow reserves to be booked if successful.

well test result

South Australian government approval received and PRL13 transferred to Red Sky Killanoola Pty Ltd, resolving the pending acquisition. Plan is to restart production from the two shut-in wells, with 3D seismic later. Company says it is fully funded and debt free.

asset acquisition disposition

Red Sky completes the purchase of the Killanoola licence (PRL13) from Beach Energy, including existing production infrastructure. Ministerial approval to register the transfer is still pending. Planning has started to restart oil production at Killanoola-1-DW1.

asset acquisition disposition

Rob Annells is appointed non-executive Chairman, filling the vacancy left when Gordon Ramsay resigned in April 2020. He previously chaired Lakes Oil for over 30 years and founded Greenearth Energy as chairman.

director officer appointment

Binding commitments for $4.3m at 0.2c: $3.2m (1.6bn shares) of rights issue shortfall plus a $1.1m (550m share) placement. Beer & Co receive 6% fees and 70m options at $0.005. The company says it is now fully funded to complete Killanoola.

capital raising announcement

Rights issue raised only $771,478 from 385.7m new shares at 0.2c, about 19% of the roughly $4m target. 201.1m came from entitlements and 184.6m from shortfall. About 1.66 billion shortfall shares remain available.

capital raising announcement

Maiden resource statement for Killanoola: contingent oil resources of 0.8 / 2.8 / 5.4 million barrels (1C/2C/3C). No reserves are booked, as the acquisition has not completed and commerciality is unconfirmed. Previous operators' reserve claims are not adopted.

resource reserve update

Offer document for the 1-for-1 non-renounceable rights issue at 0.2c, up to about $4m, not underwritten. It would double the 2,046m shares on issue. $800k is earmarked for a security bond and $2.3m for Killanoola fieldwork if the acquisition proceeds.

capital raising announcement

Red Sky agrees to buy Beach Energy's 100% of the Killanoola oilfield (PRL 13, South Australia), subject to regulatory approvals. It plans a 1-for-1 rights issue at 0.2c to raise about $4m, funding restart. It delivers the stated growth strategy of buying producing assets.

asset acquisition disposition

Red Sky raised A$400,000 before costs by placing 400m shares at 0.1 cents each. That is well below the 0.25 cent price paid in the September 2019 placement. It adds to the share count.

capital raising announcement

Red Sky raised A$780,000 from sophisticated investors by issuing 313m shares at 0.25 cents each. Funds go to existing projects, working capital and new opportunities. It resolves the capital raising flagged at the 19 September trading halt.

capital raising announcement

Farm-out to Santos, which can earn 80% and operatorship of all six Innamincka Dome licences by funding up to A$9m: Yarrow 3D seismic, a Yarrow appraisal well and a Flax appraisal well. This relieves Red Sky of the A$5.0m bond. Conditional on ministerial approval.

farm in farm out agreement

Strategic review result for Yarrow: scoping a five-year project to deplete 20 bcf, valued at about $200m, with a A$12.3m pipeline that banks indicated could be debt-financed. First gas is targeted within three years. Exploration funding outcomes on Juniper and PRL180-182 are due in 2H 2019.

other

Strategic review result for Flax: a low-capex first phase to reopen the six existing wells, which the company believes could take under six months. A second phase would test enhanced oil recovery. The A$100/bbl oil price and recovery uplift are company claims.

other

Corporate update: strategic review of its four Cooper Basin projects is nearly complete, focusing on low-capex, near-term cash flow. It is in advanced talks on a corporate bond to refinance the remediation bond, aiming to limit dilution, with details promised within four weeks.

other

Ministerial consent granted and the remaining 25% of PRL182 transferred from Bengal for $1, as agreed 24 October 2018. Red Sky now holds 100% of all six Innamincka Dome licences. CEO Knox targets a starter project for early cashflow by end of 2019.

farm in farm out completion

Guy Le Page resigned as Non-Executive Director and Chairman of Red Sky effective 13 May 2019. The announcement gave no reason and named no replacement.

director officer appointment

Independent consultant RISC report assigns net 2C contingent resources of 9.9 mmbbl oil and 17.7 bcf gas to Flax and 18.3 bcf gas to Yarrow, both 100% owned. RISC found no new well data and no reason to change prior estimates; it judged Yarrow and Flax developments economic.

resource reserve update

South Australia's minister approved the transfer and Red Sky completed the Beach acquisition: 100% of five Innamincka Dome permits including Flax, and 75% of PRL182. This ends the long-delayed deal from July 2018; re-commissioning planning for Flax has begun.

farm in farm out completion

The placement of 190m shares at 0.18c raised $342,000 before costs, from existing investors using existing placement capacity. Shares on issue rise to about 1.013bn. Funds go to existing projects and working capital; far smaller than the original $2.2m target.

capital raising announcement

Red Sky applied for ministerial consent after amending the Beach deal: it must post an $800,000 escrowed assurance, forfeited if Beach is not released within six months. CEO Knox lends the $800k at 10%, with 66.67m shares subject to approval. It also plans a $342k placement at 0.18c, a steep drop from 0.4c.

capital raising announcement

Red Sky signed a conditional agreement to buy Bengal Energy's 25% of PRL182 for $1, giving 100% of all six Innamincka Dome permits. It takes on decommissioning and rehabilitation liabilities. Completion depends on approvals and on the Beach purchase completing, and the agreement lapses after 180 days.

asset acquisition disposition

The rights issue closed with only 13.3m of 151.7m shares taken up, raising about $53,174 against the roughly $600,000 sought. The board may place the 138.5m-share shortfall within three months. Shares on issue become 772.0m.

capital raising announcement

Prospectus for a non-underwritten rights issue of one new share for every five held at 0.4c, to raise up to about $600,000. It closes 17 August 2018. This is the long-delayed rights issue, now with terms set and no underwriter.

capital raising announcement

Red Sky signed a conditional agreement to buy Beach Energy's Innamincka Dome interests in the Cooper Basin: 100% of five PRLs and 75% of another, including the shut-in Flax oil field. Funded by a proposed $2.2m raise at 0.4c: $1.6m placement and $600k rights issue. This is the Australian acquisition long sought.

asset acquisition disposition

Andrew Knox, formerly CFO of Cue Energy for 22 years, becomes CEO and Managing Director, with a $156,000 base salary. Up to 30m performance shares (subject to approval) vest if the share price doubles, quadruples and rises eightfold. The chair ties him to the newly acquired Innamincka project.

director officer appointment

Red Sky disposed of its 50% interest in Cache Martini No. 1 LLC, leaving no interest in the Cache oilfield. It was transferred for nominal consideration, with the buyer assuming environmental obligations. Gold Nugget still shows high pressures and inconsistent flows. Shares now 608.7m.

asset acquisition disposition

The full $1,150,000 convertible note converted at 0.3117c a share, issuing 385.3m shares (including capitalised interest) and 184.5m 1c options to Nov 2019. This clears the note debt but sharply increases the share count from 223.4m.

capital raising announcement

Placement of 32.5m shares at 0.4c raised $130,000, with 1-for-1 attaching 1c options (to Nov 2019) subject to shareholder approval. Funds go to acquisition due diligence and working capital. The $500k-plus rights issue is still to be timed; shares on issue now 223.4m.

capital raising announcement

Notice of the 50-to-1 share consolidation, subject to the 9 March 2017 shareholder meeting: 6,161,396,921 shares become an estimated 123,227,938. Effective 13 March, with new holdings issued 21 March. Part of the RM Corporate recapitalisation.

security holder rights change

Gold Nugget has not produced consistent gas as hoped, owing to higher pressure and water production; directors await a formal production update. Cache has been written down because of ongoing running and environmental costs. Reverses the earlier stabilisation message.

production update

Binding deal with RM Corporate Finance to underwrite a $1m convertible note (8%, converting at the lower of 0.5c or 80% of VWAP) and a $500k rights issue, plus a 50-to-1 share consolidation. Smith and Reinhart leave the board; Le Page and Wing join. Carey becomes non-executive.

capital raising announcement

September quarter: Gold Nugget flows 300–500 mcf a day, below the earlier 500–1,000 expectation. 336.3m shares issued for the 70% interest. Cache, now judged unlikely to be developed at current oil prices, is to be marketed or funded out. Cash was A$25,000.

quarterly activities report

A$350,000 convertible loan note raised from sophisticated investors: 12 months, 15% interest, half convertible at 0.1c a share, secured over the Gold Nugget subsidiary. It paid the US$40,000 owed to the vendor; the balance funds other projects.

debt financing

Gold Nugget acquisition completed on revised terms: US$450,000 cash plus 336.3m shares. Company gets 70% of the well on issuing shares, rising to 100% once the remaining US$240,000 is paid from 50% of well profits. A further US$40,000 is due to the vendor.

asset acquisition disposition

March quarter: Gold Nugget option extended again; output ranged 150–1,200 mcf a day, with a compressor ordered to steady flow. Board now intends to put Cache on care and maintenance rather than drill, after continuing permitting delays, and to buy producing assets instead.

quarterly activities report

Gold Nugget output lifted from 150 to 350–1,600 mcf a day after well work, expected to settle at 500–1,000. Company paid a further A$100,000 to extend completion by 90 days; funding for the US$800k price is still being finalised.

production update

Binding term sheet to buy the Gold Nugget 1-23 gas well in Wyoming for US$800,000, with a US$100,000 deposit and completion within 60 days. It makes 150 MCF gas a day; the company estimates 2–5 BCF recoverable. A second US asset, but the funding facility is still being negotiated.

asset acquisition disposition

Cache acquisition completed after the 17 July meeting approved it: 50% acquired for shares at 0.1c, with a raising of $1.742m at the same price. Kerry Smith and Bill Rinehart join the board. Shares on issue rise to about 5.69bn; a new well is planned, permit pending.

asset acquisition disposition

Notice of meeting for 17 July sent, with an independent valuation of the 50% Cache interest at $29.66m–$35.27m (preferred $30.02m) against a purchase price of $1.2m–$2.1m. Cites ~5.1–6m barrels recoverable; the field currently makes 10–20 barrels a day. The expert called the deal fair and reasonable.

resource reserve update

Cache raising revised to a minimum $700k and maximum $1.85m at 0.1c (700m to 1.85bn shares), up from $600k to $1.5m. Vendors now appoint two directors, not three, and Adrien Wing stays on the board. Approvals are still needed.

material agreement

Definitive agreement signed for 50% of Cache, but terms change: vendors now get 1.29bn shares at 0.1c, plus a raising of $600k to $1.5m at 0.1c, with top-up shares to the vendors if less is raised. Vendors nominate three directors; Adrien Wing to step down.

material agreement

Red Sky completes the $300k loan for Cache and the first tranche of a placement: about 420m shares at 0.08c to raise about $336k. A second tranche of about $274k needs shareholder approval. A further $2.4m raising at 0.2c is planned with the acquisition.

capital raising announcement

Red Sky signs a binding term sheet to acquire 50% of the Cache oilfield in Colorado, a new direction after solar stalled. The field makes about 12 barrels a day from one well. It needs about $2.4m of raisings, a $300k first-stage loan, and shareholder approval.

asset acquisition disposition

Russell Krause, a capital markets and corporate advisory veteran, joins as non-executive director. Managing Director Rohan Gillespie resigns after five years; he held 180m shares indirectly via Energy Infrastructure & Resources. Leadership change for the company.

director officer appointment

Chairman Gerrit de Nys retires after the 8 May AGM and is succeeded by Guy Le Page, a director since February 2009. Managing director Rohan Gillespie remains.

director officer appointment

The ATO issues a Product Ruling on the managed investment scheme for Dubbo, giving wholesale investors tax certainty over owning panels directly. Subsidiary Rhythm Section expects to open applications within two months. Resolves the long-delayed funding structure approval; investor commitments are still to be won.

regulatory community update

Red Sky agrees to sell its 20% of PEL 457 and 479 to ERM Gas for $1.685m: $250k plus $217.5k from the permits account for each permit, and $750k upfront instead of the $1m due on PEL 479 renewal. Needs shareholder, ERM board and partner consent.

asset acquisition disposition

Red Sky withdraws from the ATP 840 Taroom Trough permit (18.75%), avoiding its share of an $8m deep well required next permit year. Ends the search for a farm-in partner; the interest goes to the other joint venture parties. Focus stays on solar.

asset acquisition disposition

Dubbo plan is scaled back: a 1MW first phase (about $2m, five months to build) will go ahead, with a 1.5MW second phase (about $3m) in FY2014/15. Returns of 9.8% pre-tax are claimed even if carbon tax and renewables scheme are cancelled. Regulatory approval now expected Q1 2014.

investor presentation

Dubbo solar timeline slips: proposed federal tax law changes force changes to the unitised funding structure and project design (about 2,200 1.1kW systems). Financial close now targeted late November/early December, versus an October start; construction still aimed for June 2014.

other

NSW approves renewal of PEL 457, triggering the second ERM milestone: $1,000,000 payable to Red Sky, which keeps its 20% interest. A further $1m is due on PEL 479 renewal; ERM payments total up to $2.7m.

farm in farm out completion

SOLEIR secures a three-year option to buy 269 hectares at Darlington Point, NSW, for a price under 1% of the estimated $200m cost of a possible 100MW solar project. Extends the solar strategy beyond Dubbo; approvals and a financier are still to be found.

asset acquisition disposition

SOLEIR completes a feasibility study for the 2.5MW Dubbo solar project: capital cost $4.4m, 35-year life, SOLEIR internal rate of return 15% to 23%. Funding would sell 65% to individual investors. Still needs the grid connection agreement and funding structure; builds on the Feb 2013 approval.

other

Red Sky exits the ATP 946 (Yaraka) farm-in with Resolve Geo by mutual agreement, ending an obligation to drill two core holes costing about $2m. Settlement is shares plus a small cash payment. Management cites higher compliance costs and permitting uncertainty.

material agreement termination

Red Sky buys SOLEIR, a solar developer with a 2MW Dubbo project, for $249,000 cash, aiming to build the first phase by June 2013. SOLEIR is 58% owned by EIR, associated with MD Rohan Gillespie. His contract was renewed three years. A move beyond gas.

asset acquisition disposition

The ERM Gas deal reached financial close on 13 September 2012. ERM funds 6-9 wells, can earn up to 80% PEL 478 and 60% PEL 479/457, and pays Red Sky up to $2.7m on milestones. 150m shares go to ERM at 0.7c. Resolves the repeated delays.

farm in farm out completion

Term sheet with ERM Gas: it funds six to nine wells across PEL 478, 479 and 457 and pays Red Sky up to $2.7m on milestones. Red Sky issues 150m shares (about 9.5%) and drops to 20% in PEL 479 and 457, with a $10m buy-out option. Needs shareholder approval and due diligence. Replaces the Clarence Moreton Resources farm-in.

farm in farm out agreement

The NSW regulator has approved the Talma pilot well application, after about six months of review. The next step is to contract a rig and drill, exposing 480-570m of the Kangaroo Creek sandstone, then flare and produce. No rig or timing yet.

regulatory community update

Red Sky signs the proposed $3m equity facility with YA Global, drawable over 3 years at up to $100k per 10 trading days. Shares price at the lowest 10-day VWAP, with a 5% commission. Company says current cash funds the Talma pilot.

debt financing

Study on the Kangaroo Creek sandstone finds an 83m gross column at Talma #1 and a 28 Mscfd flow from a 10m interval. Permeability is low, and seal and structure are unconfirmed. Company says pilot drilling is needed to size the resource; no reserve booked.

resource reserve update

Binding term sheet with Clarence Moreton Resources replaces the lapsed option. Red Sky can rise from 30% to 70% in PEL 457/479 in four 10% stages, one well each, with the Talma pilot earning 10% in PEL 457. A $3m equity facility over 3 years is proposed, subject to due diligence.

farm in farm out agreement

Red Sky narrows to two areas, Clarence Moreton and ATP 946. It ends the ATP 904P farm-in for 15m escrowed shares to Adelaide Energy, relinquishes the Sandy Camp and Tibooburra permits, and cuts its ATP 840 unconventional interest to 25%. Spending commitments are substantially reduced.

asset acquisition disposition

Red Sky lets its option lapse to earn a further 40% in PEL 457 and 479 for $3m per permit, keeping its 30%. Talks continue on a revised farm-in. This resolves the earlier open decision on spending $3m per permit.

farm in farm out agreement

Placement raises $1.44m through 120m shares at 1.2c, with a free 1-for-2 option (60m listed options at 2c, September). Funds mainly go to the Talma pilot well. It adds to the share count of about 1.23bn.

capital raising announcement

Lab work estimates 83m gross pay in the Kangaroo Creek sandstones (480-563m) at Talma. A single unstimulated pilot well beside Talma #1 is planned for June/July 2011, operating Aug/Sep, running over a year; approvals have begun and landowner consents are in place.

drilling scheduled

Talma #1 flowed gas to surface from the Kangaroo Creek sandstones above the Walloon coals, suggesting a possible significant extra gas resource, shallow (under 600m) and possibly needing no fracturing. Testing continues, and a small local power station is being studied.

drilling result

MHA certified maiden 2P reserves of 17 PJ in PEL 479 and a 210% rise in 3P reserves, on a 100% basis. PEL 479 3P was 159 PJ, PEL 457 3P 221 PJ and PEL 457 2C contingent resources 629 PJ. The company said it would start planning production pilots.

resource reserve update

Completing Annvale #1 and Talma #1 earns Red Sky 30% in each of PEL 479 and 457. It can lift this to 70% by spending $3m per permit, a decision that will depend on the coming reserves upgrade.

farm in farm out completion

ATP 946 (Yaraka, central Queensland) has been granted, so the Resolve Geo farm-in proceeds. Two core holes (about $1.6m) within 12 months earn 10%; a further $5m earns 80% more. 40m shares are issued to Resolve Geo now and 40m more if the option is exercised. Company cites a possible 10 TCF resource if coal thickness and gas content meet expectations.

farm in farm out agreement

Drill stem test of Annvale #1 over 675-688m showed good permeability, with a gas flare twice the size of Talma #1's. The company says this is a good indication the gas is producible and supports reserve certification.

flow test result

Talma #1 core testing shows average gas content of 5 m3 per tonne raw, 15 m3 per tonne dry ash free, with coals apparently fully saturated and up to 25% ethane. The company calls this very important for certifying reserves, and the results are comparable to Metgasco's Riflebird well.

well test result

Annvale #1 finished at 900m with 19.4m of gassy coal and 27 core samples taken for gas testing. The company says results to date have met expectations. This completes the second well of the Clarence Moreton program; wireline and permeability tests follow.

drilling result

Carinda #1 reached 354m. Logs showed 5.2m of coal across 14 seams, in line with expectations, though some seams are too shallow to hold gas. The company plans 6-8 wells across the Sandy Camp permits for about $1m, with a decision around mid-2011.

drilling result

Talma #1 finished at 836m with 23.5m net gassy coal across 29 seams, versus 15m assumed in the November certification. The company expects recoverable resource to rise by at least 500 PJ, to be confirmed in Q1 2011.

drilling result

Red Sky places 70 million shares at 2 cents to raise $1.4m before costs, led by Melbourne Capital. Funds go to Clarence Moreton exploration and working capital. Cash was $2.40m at September.

capital raising announcement

The 150 million deferred shares owed to Cydonia Resources vendors were issued on 18 November, taking shares to about 1.12 billion. This settles the 150m milestone shares thread; they carry a 12-month trading lock.

asset acquisition disposition

MHA certifies initial Clarence Moreton volumes: 179 PJ of 3P reserves (PEL 457) and 938 PJ of 2C contingent resources across three permits. Red Sky holds no interest yet; completing both wells earns 30% of PEL 457 and 479.

resource reserve update

Annvale #1 (PEL 479) spudded on 22 October and reached 80m before surface casing was cemented. Coring of coal is due from about 600m, over a 350m interval, with total depth 950m. First Clarence Moreton well begins.

drilling spud

Red Sky reverses July's plan to farm out PEL 467 first and will now drill Carinda #1 in October, making a three-well program with the two Clarence Moreton wells. It says lower costs mean available cash covers all three.

drilling scheduled

Red Sky confirms withdrawal from all permits in its joint venture with Central Petroleum, ending the dispute and its Pedirka and NT interests. The announcement gives no terms; refers to Central's release.

material agreement termination

Central says it settled the farm-in dispute: Red Sky withdraws from all Central-farmed permits and returns its interests for an undisclosed sum, ending the Farmout Agreement. Resolves the dispute and default notices; the settlement amount is not disclosed.

material agreement termination

Red Sky farms into four Clarence Moreton Basin permits in NSW (PEL 457, 478, 479, PSPA 37). One well earns 30% each; a further $3m earns another 40%, with an option to buy the rest. Two core holes are planned for late 2010.

farm in farm out agreement

Central says it has sent default notices to Red Sky's NT subsidiary for about $1.9m of unpaid cash calls and about $3.8m of farm-out costs (including the $1.9m). This follows the dispute over Red Sky's March farm-in election.

debt default or forbearance

Carinda #1 in PEL 467, due to spud late June, is now being revised; PEL 467 and surrounds (Sandy Camp, up to 11tcf gas-in-place) are to be farmed out. ATP 946 is not yet granted, with two core holes planned for Q4 2010. Focus shifts to ATP 946.

drilling scheduled

Red Sky will manage the farm-out of all ATP 840 rights, seeking a partner to fund a well and 100km seismic (est. $4.0-5.5m) for 50%. Red Sky would earn 20% of Clark Oil's conventional rights and keep its 50% non-conventional interest. A sizeable oil prospect is also identified.

farm in farm out agreement

Red Sky signed a term sheet to earn up to 100% of coal seam gas rights in ATP 946 (about 7,650km2, central Queensland). Two core holes (about $1.5m) earn 10%; a further $5m earns 80%. 40m shares are issuable on grant, 40m more on exercise. Conditional on grant, native title and approvals.

farm in farm out agreement

Red Sky said it would meet remaining cash calls for Pedirka Basin permits EP 93 and 107 under its Broadacre farm-in with Central. It elected not to earn its 10% interest in a number of permits outside the Pedirka Basin.

farm in farm out agreement

Red Sky signed a binding term sheet with Enhanced Biogenic Methane to fund a roughly $600,000 single-well demonstration of gas-boosting technology. EBM is associated with Managing Director Rohan Gillespie and would get a 25% farm-in interest plus royalty where used. Subject to shareholder approval if required.

material agreement

Romona #1 reached 640m and found only 1.6m of coal over 8 seams, including one gassy seam under 1m thick. Red Sky says this is less than expected and not commercial. The well earns a 50% interest in ATP 840, but Talwood #1 is deferred pending analysis.

drilling result

Romona #1, Red Sky's first coal seam gas well in ATP 840, will spud on 29 January. Red Sky will then drill Talwood #1 in ATP 904, which earns a one-third interest. A third well is expected in NSW.

drilling scheduled

Central reports Pedirka well CBM93-004, in which Red Sky holds 10%, reached 978m with about 144m of coal and fair to excellent gas readings. Thicker than expected, it supports widespread coal. Preliminary results; this is Central's announcement.

drilling result

PEL 123 in NSW, acquired with Surat Resources, has been granted at 100%. The two-year program is geological studies, then one core hole to about 500m. Work programs for PELA 124 and 125 are still being negotiated.

regulatory community update

Red Sky says it has reached further agreement with PXA, resolving the dispute and entitling it to a 10% interest across Central's permits. It says participation is optional permit by permit. The first Pedirka coal seam gas well spudded in early December.

joint venture update

Red Sky raised $4.5m through a placement of 125m shares at $0.036, led by Melbourne Capital, after shareholders approved the Norwest and Surat Resources deals on 27 November. Issued shares reach about 971.5m. Funds go to exploration and working capital.

capital raising announcement

Red Sky agrees to buy Surat Resources, with three coal seam gas permits (about 23,000 km2) in northern NSW next to the Norwest permits, for 80m shares subject to shareholder approval. Potential 26 tcf gas in place, undiscovered, giving a contiguous area above 53,000 km2.

asset acquisition disposition

Gerrit de Nys becomes non-executive Chairman with immediate effect. He co-founded Hong Kong's Shui On Group, held senior roles at IMC Group, and has been a non-executive director of Horizon Oil.

director officer appointment

Red Sky agrees to buy Norwest Hydrocarbons, holding 100% of seven coal seam gas permits (about 71,600 km2) in northern NSW, for 80m shares. Needs shareholder approval. Potential 34 tcf gas in place, undiscovered; work commitments are funded from existing cash.

asset acquisition disposition

Red Sky, via a subsidiary, farms into Central Petroleum's Central Australian permits for a minimum 10% in 27 permits. It funds up to 20% of the first three conventional wells per permit and 20% of the first A$3m of seismic. It also pays A$5m per trillion cubic feet of 3P reserves found.

farm in farm out agreement

Red Sky completed buying 100% of Cydonia on 18 September after shareholder approval on 11 September. Both ATPs are granted and the $4m placement is finalised. The first drill hole is expected before Christmas.

asset acquisition disposition

Rohan Gillespie becomes Managing Director immediately, as flagged at the Cydonia deal. He is Managing Director of Energy Infrastructure and Resources, a major Cydonia shareholder that will run the work program, and formerly led BHP Billiton's coal seam gas business.

director officer appointment

The $4m placement of shares has closed oversubscribed. Cydonia settlement and issue of all securities are expected within a fortnight.

capital raising announcement

Red Sky agrees to buy Cydonia Resources, which can earn up to 100% of two Surat Basin coal seam gas permits (about 1,700 km2), for 150m shares and 150m options at $0.04, plus 150m milestone shares. It also plans a $4m placement of 200m shares at 2 cents. Rohan Gillespie is to be Managing Director. This is a strategy change after the failed Planet Downs well.

asset acquisition disposition

March quarter cash fell to $71,000 after a $126,000 operating outflow. Shareholders approved shares to Sky Hunter (13,875,000) settling about C$800,000 of debt, and 175m placement shares at 0.2c ($350,000) are due in May. Planet Downs consumed the $1m deposit.

quarterly activities report

Planet Downs-1 was plugged and abandoned on 7 March 2009 at 1,444 m. Oil shows were seen, but poor permeability and limited column height meant no discovery. Red Sky's 25% earning right was tied to a discovery, so its $1m deposit yields nothing.

drilling result

After shareholders approved the $350,000 placement at 0.2 cents, directors Adams, Bradley, Arnett and Skipper resigned. Quinn stepped down as Managing Director but stays as non-executive. RM Capital's Guy Le Page and Robert Hyndes join, a change of control of the board.

director officer appointment

Red Sky and Drillsearch agreed that the $1m deposit, held after the earlier farm-in expired, gives Red Sky up to 25% of any discovery at Planet Downs-1, targeting about 1 mmbbls (P50). This settles the use of the deposit.

farm in farm out agreement

Red Sky will not renew PEL 451 in the Darling Basin, again citing the need to preserve cash. With PELs 419 and 420 already dropped, this removes the permit with up to six leads.

asset acquisition disposition

Red Sky will not renew Darling Basin PELs 419 and 420, which expired 18 December 2008, and has relinquished its right to earn into PEL 93 after not drilling a third well. The stated reason is preserving cash. This reverses the 500 km Darling seismic plan.

asset acquisition disposition

Red Sky signed a Heads of Agreement with RM Corporate Finance, which will help restructure and recapitalise the company and underwrite a $350,000 placement at 0.2 cents per share, subject to shareholder approval. This is the first raising since the $0.20 IPO.

capital raising announcement

Debt to major shareholder Sky Hunter for airborne surveys, CAD$900,000, was renegotiated after a CAD$100,000 payment. The rest is settled by a payment on a new project acquisition, or by issuing 10,000,000 shares plus extras if no acquisition proceeds.

debt financing

Barry Adams becomes Chairman after Klaus Zahnd retired at the AGM. Adams is a director with about 30 years of oil and gas experience, including at Esso and Woodside. This resolves the leadership change flagged in March.

director officer appointment

Chairman Klaus Zahnd will retire as chairman and director at the 23 May 2008 AGM, citing that he lives in Canada while operations are focused on Australia. A new chairman will be named after the AGM.

director officer appointment

Management says the two dry PEL 93 wells do not end use of the Sky Hunter method. About $2m went on the wells and $1m on Darling seismic of the $6m IPO. Further funds are being sought, which it says is hampered by weak markets.

investor presentation

Red Sky will not exercise its option to farm into EP 444 in the Carnarvon Basin, WA, despite some drillable prospects, saying it is focusing on the Cooper-Eromanga and Darling Basins. Ends the Carnarvon thread after its geochemical survey and half the interpretation costs.

asset acquisition disposition

Patron-1 reached 1,807 m and logs showed no economic hydrocarbons, so the well will be plugged and abandoned. This is Stuart's confirmation of a second dry hole under the PEL 93 farm-in.

drilling result

Stuart announces Patron-1 in PEL 93 will start about 21 September, the second well under the Red Sky/Magellan farm-in. Mean target is 2.4 million barrels of oil in place. The agreement allows up to 12 wells over three years. Follows the Rainbird dry hole.

drilling scheduled

Options rights issue closed 17 August: shareholders took 15.99m of 30.82m options, raising $159,872. The underwriter takes the 14.83m shortfall ($148,322). Funds cover offer costs and working capital. Quotation expected 28 August.

capital raising announcement

Rainbird-1 was plugged and abandoned at 2,154 m with only minor hydrocarbons on logs, a dry hole in Red Sky's first test of its geochemical method in the Cooper Basin. Management says the technology remains valid and will announce the next prospect shortly.

drilling result

Rainbird-1 spudded 7 August 2007, Red Sky's first well since listing and the first Cooper Basin test of its geochemical method. Red Sky pays 49% to earn 24.5%; the target is 6.4 million barrels of oil in place (P10, unrisked).

drilling spud

New PEL 93 farm-in with Magellan replaces the earlier deal. Red Sky and Magellan each pay 49% of Rainbird-1 costs to earn 24.5%, cutting Red Sky's stake from 49% (it was to fund 98%). Magellan will reimburse part of Red Sky's survey costs.

farm in farm out agreement

Prospectus for a non-renounceable options issue: one option per three shares at 1 cent, exercisable at $0.30, expiring 31 July 2009, record date 30 July. Underwritten by Allegra Capital. Delivers the options issue planned at listing.

capital raising announcement

Bryan Quinn, formerly of Esso, Rio Tinto and Powercor, becomes Managing Director from 1 August 2007. Klaus Zahnd resigns as MD but stays Chairman, and Barry Adams ends his CEO consulting contract but stays as a non-executive director. This resolves the permanent MD thread.

director officer appointment

Great Artesian's release says Red Sky deposited $1m, meeting the final condition of its PEL 91/106 farm-in. Red Sky can fund up to three wells, with drilling expected in the second half of 2007. This advances the earlier farm-in.

farm in farm out completion

Stuart Petroleum will drill Rainbird-1 in PEL 93 from June 2007 in a seven-well program. Red Sky funds 98% of the well to earn 49%. It is the first well drilled for Red Sky since listing.

drilling scheduled

Red Sky says it raised $6 million at $0.20 per share and listed on 23 May 2007. It holds farm-in interests in four Cooper Basin permits and Carnarvon Basin's EP 444. It proposes a 1-for-3 options issue at 1 cent, exercisable at $0.30.

other

Red Sky Energy was admitted to the ASX official list on 21 May 2007 under code ROG, with 53,132,549 shares issued at $0.20. Trading was due to start on 23 May.

other

Updated pro-forma balance sheet shows the IPO raised about $6.05 million, down from the $8 million sought, with issue costs cut to $745,000. Pro-forma net assets are about $9.2 million, and convertible notes are converted.

capital raising announcement

Red Sky Energy's replacement prospectus offers up to 40,000,000 shares at 20 cents to raise up to $8 million, ahead of an ASX listing. The shares are described as speculative.

capital raising announcement