6 Sept 2023joint venture update▲ Good
Red Sky agreed a joint seismic survey with Santos over parts of PRL14 (including Yarrow) and PRL17, with Red Sky free carried. Acquisition is expected in Q4 2023 and will inform where further Yarrow wells go.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
24 Aug 2023half year report● Neutral
Half-year report to 30 June 2023: net loss $712,251 (prior period loss $834,656), cash $3.3m. Recaps Yarrow first gas and the Viva Energy crude sale deal; no new operational information.
22 Aug 2023contract award▲ GoodMajor
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.
18 Aug 2023production update▲ GoodMajor
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.
31 May 2023other● Neutral
Company constitution as amended at the 31 May 2023 AGM. Governance document with no stated operational or financial impact in the text provided.
29 May 2023joint venture update▲ Good
Santos reports the ~18km Yarrow pipeline is on time and on budget, due for completion in early July. Yarrow 3 should come on in Q3 2023. Red Sky is pursuing options to sell its share of the gas.
21 Apr 2023resource reserve update▲ GoodMajor
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.
23 Mar 2023other● Neutral
Appendix 4G corporate governance checklist lodged with the annual report. Administrative filing with no new operational or financial information.
23 Mar 2023annual report● Neutral
FY2022 annual report. The MD's letter says Yarrow 3 first production is expected in Q3 2023 and Yarrow 1 re-entry later in the year. Killanoola production is held up by difficulty finding a buyer for the viscous crude. The company is still pursuing acquisitions.
6 Feb 2023material agreement▲ GoodMajor
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.
8 Dec 2022well test result▲ Good
Production logging confirms the Yarrow 3 flow is 85% from the Patchawarra and 15% from the Tirrawarra, in line with expectations. The 5.0 MMscf/d flowback rate is unchanged; about a week more pressure data will inform volume estimates.
23 Nov 2022flow test result▲ GoodMajor
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.
21 Nov 2022drilling progress report▲ Good
Fraccing of Yarrow 3 began the previous Friday after the weather delay, expected to take about three days, followed by roughly seven days of flow testing.
28 Oct 2022drilling progress report▼ Bad
Yarrow 3 fraccing has been delayed because severe weather is stopping rigs reaching the site. No new date given. Another weather delay on Yarrow, following earlier postponements.
20 Oct 2022drilling scheduled▲ Good
Santos will frac Yarrow 3 immediately, from late October subject to weather, with a two-stage frac then flowback to assess it as a producer. If successful, next steps are fracing Yarrow 1, then an 18km pipeline and possibly more 3D seismic.
29 Sept 2022drilling result▲ Good
Santos finished Yarrow 3 with no incidents: casing set at 2,744.5m, well suspended and rig released. Gas is indicated in the Patchawarra and Tirrawarra, and the logging data will now be evaluated to set the forward plan. Restates results already reported.
26 Sept 2022drilling result▲ GoodMajor
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.
21 Sept 2022drilling progress report▲ Good
Santos was drilling Yarrow 3 ahead at 2,384m. At the current rate, the 2,720m target depth was expected to be reached within about 24 hours, and no results had been reported yet.
16 Sept 2022drilling spud▲ GoodMajor
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.
6 Sept 2022investor presentation● Neutral
Good Oil Conference presentation repeats known facts: Killanoola 93 mmbbl oil in place, 27.9 mmbbl 2C, heated-crude plan, and 20% Innamincka interest. Notes 5,302m shares, no debt, and seismic processing completed with interpretation under way. Yarrow gas well listed for Q3 2022.
24 Aug 2022half year report● Neutral
Half-year report to 30 June 2022: net loss $834,656 (versus $637,449 a year earlier), with remuneration costs of $571,001 up from $283,044. Restates the Killanoola 93 mmbbl estimate and Yarrow drilling now due in October. No subsequent events reported.
26 May 2022investor presentation● Neutral
AGM presentation restates the 93 mmbbl oil in place and 27.9 mmbbl 2C figures. It adds that the waxy crude (pour point 36°C) will be heated through production and trucking, and a rig is still being sought. Yarrow vertical well now scheduled for August 2022.
5 May 2022resource reserve update▲ GoodMajor
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%.
24 Mar 2022annual report● Neutral
Annual report for 2021 restates the year's progress: Killanoola acquisition, DW1 test, seismic, and Rob Annells as chairman. Santos's Yarrow well is now expected in June 2022. Management says it hopes to announce an acquisition of producing or near-producing assets this year.
24 Mar 2022admin correction● Neutral
Appendix 4G corporate governance checklist lodged with the annual report, dated 24 March 2022. Administrative filing with no new information on operations or finances.
2 Mar 2022drilling progress report▲ Good
Killanoola 3D seismic acquisition finished on schedule; data now goes to processing and interpretation. Red Sky has begun planning to contract a rig and perforate extra zones at DW1 and SE1, and is exploring early production from DW1's existing 5m of pay.
14 Feb 2022regulatory community update● Neutral
Killanoola 3D seismic survey has started after landowner agreements were concluded, expected to take up to a month. Separately, Santos's Yarrow drilling is delayed again by wet weather, with the rig moved to another well. This extends the earlier January slip; no new date given.
22 Dec 2021well test result▲ Good
Killanoola DW-1 preliminary production test completed with no incidents: the pump worked and fluid samples were collected for assay. Oil flowed with no water at an average 40 bopd from the existing 5m of pay. Samples will support talks with potential oil buyers; an extended test follows perforation.
16 Dec 2021drilling scheduled● Neutral
Santos plans to start drilling the Yarrow 3 gas well in the last week of 2021, fully funded by Santos with Red Sky free carried. Planned depth is about 2,700m, taking roughly two weeks. Yarrow's 2C contingent resource is 18 bcf.
13 Dec 2021well test result▲ GoodMajor
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.