Past year: ▼ 84%(0.10c – 0.63c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
6 Dec 2021regulatory community update▲ Good
Final government approval received for a production test of Killanoola DW-1's existing 5m of pay. Contracts are awarded and testing is expected to start 10 December. This resolves the long-pending approval for pumping the well.
5 Nov 2021joint venture update● Neutral
Killanoola approval for testing DW-1's existing 5m of pay is in its final stages. The SE-1 perforation is delayed because the government requires production tubing first, so Red Sky is negotiating to buy a workover platform. Santos now expects to drill Yarrow in late December.
20 Sept 2021drilling result▲ Good
Slickline work shows the Killanoola SE-1 well bore is clear. This removes the need for a rig at this stage, though a wellhead must be installed before perforating the 16m of potential pay. It resolves the 13 September question.
13 Sept 2021regulatory community update▲ Good
South Australian energy department approves slickline operations at Killanoola SE-1, the first re-entry in over 10 years. If the well bore is clear, Red Sky will go straight to perforating the 16m of potential pay; otherwise a rig is needed.
9 Sept 2021half year report● Neutral
Half-year report to 30 June 2021 shows a net loss of $362k (prior period $334k). Restates the $4.3m earlier raising and 6.4m boe contingent resources. Subsequent events list the August placement and SPP shares. The cover carries stray 'Kilgore' template headings.
8 Sept 2021investor presentation● Neutral
Good Oil Conference presentation restates known facts: Killanoola production tests on two wells, Santos-funded Yarrow gas well in Q4 2021, Gold Nugget divestment planned. Shares on issue 5,282m. Net 2C contingent resources 6.42m.
2 Sept 2021capital raising announcement▲ GoodMajor
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.
What it means for a shareholder
402m new shares at about A$0.0127 to raise about A$5.1m. That's 8.0% dilution: every existing holder's slice gets 8.0% smaller. If you held A$1,000 of shares (78,780 at the issue price), your slice goes from 0.0017% to 0.00156% of the company. To keep it you'd need 6,820 more shares - about A$87 at the issue price.
Create a free account to see this worked out for your own holding.
30 Aug 2021capital raising announcement● Neutral
Reminder that the share purchase plan at 0.8c closes 31 August, with results due 2 September. Terms (up to $30,000 each, up to $4m) are unchanged from the 11 August booklet. Reminder only.
17 Aug 2021investor presentation● Neutral
August 2021 investor presentation restates Killanoola (100%, 2.8 mmbbl target recovery from 7 mmbbl oil in place), the Santos-carried 20% Innamincka interest and the planned Gold Nugget sale. Shares on issue 5,043m, debt nil. No new results.
11 Aug 2021capital raising announcement● Neutral
Offer booklet for the share purchase plan at 0.8c per share: eligible holders can apply for $2,000 to $30,000, targeting up to $4m (500m shares), closing 31 August. Not underwritten. Details of the 9 August announcement.
9 Aug 2021capital raising announcement● NeutralMajor
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.
What it means for a shareholder
375m new shares at A$0.008 to raise about A$3.0m. That's 7.5% dilution: every existing holder's slice gets 7.5% smaller. If you held A$1,000 of shares (125,000 at the issue price), your slice goes from 0.00269% to 0.00249% of the company. To keep it you'd need 10,099 more shares - about A$81 at the issue price.
Create a free account to see this worked out for your own holding.
4 Aug 2021well test result▲ Good
Rods in Killanoola DW-1 were declared fit for purpose, with tubing pressure building from 0 to 30 psi. The pump will now be recommissioned for a short test run to get an oil sample. No oil produced yet.
3 Aug 2021drilling progress report● Neutral
Crews began work on site at Killanoola to check the DW-1 rods are free moving, following the 29 July approval. The pump recommissioning and a later rig for perforations remain planned. Operational step, no new result.
29 July 2021regulatory community update▲ GoodMajor
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.
10 June 2021other● Neutral
Managing Director's AGM address restates the Killanoola focus on booking reserves and restarting production. It says the company is screening acquisitions that give near-term cash flow. No new operating results or figures.
17 May 2021production update▲ Good
Inspection of the surface linear rod pump at Killanoola-1 DW-1 found it mechanically sound, with three-phase power lines nearby. A short test run, then an extended production test, is planned before perforating the extra 37m of pay.
6 May 2021well test result▲ GoodMajor
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.
16 Apr 2021director officer appointment● Neutral
Non-executive director Clinton Carey, on the board since 2015, retires to focus on other business commitments. The board is now Annells (chair), Knox and Wing.
9 Apr 2021resource reserve update● Neutral
Summary combining Killanoola (100%, 2C 2.8 mmbbl) with Red Sky's 20% of Innamincka. Total net 2C is 5.1m barrels of oil and 7.6 bcf gas. Both Killanoola wells are to be tested this year, SE-1 first. Mostly repeats earlier figures.
31 Mar 2021price query● Neutral
ASX queried a share price rise from $0.0045 to $0.009 on 31 March. Red Sky said it knew of no undisclosed information and pointed to its 22 March Killanoola SE-1 net pay announcement as the only explanation.
26 Mar 2021other● Neutral
Appendix 4G corporate governance checklist lodged with the annual report. Administrative, no new information.
26 Mar 2021annual report● Neutral
Annual report for the year to 31 December 2020. The Managing Director's letter restates the Killanoola acquisition (2C 2.8m barrels), the Santos-carried Innamincka drilling later in 2021, and says the company is well funded and debt free. Financial figures are not in the text provided.
26 Mar 2021other● Neutral
Company releases its securities trading policy, covering insider trading rules and closed periods around reports. Administrative, no new information on operations.
22 Mar 2021well test result▲ GoodMajor
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.
9 Mar 2021security holder rights change● Neutral
30 million performance rights issued to directors expired, including 10 million each for Clinton Carey and Adrien Wing. Their ordinary shareholdings are unchanged. Administrative notice.
17 Feb 2021asset acquisition disposition▲ GoodMajor
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.
15 Feb 2021director officer appointment▲ Good
Serge Toulekima, a petroleum engineer with over 20 years' experience including Cooper Basin work, joins as Reservoir Engineer. The company says he will help realise value from its onshore assets and future acquisitions.
11 Feb 2021asset acquisition disposition▲ GoodMajor
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.
8 Feb 2021director officer appointment▲ GoodMajor
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.
29 Jan 2021other● Neutral
Cleansing notice for the 2,169,500,000 shares issued in the placement and shortfall. Administrative. The text gives the price as $0.002 and also '0.02 cents', an inconsistency.
