- Red Sky Energy has completed a strategic review at its Yarrow Gas Project in Australia’s Cooper Basin
- Yarrow Project contains a 2C Contingent Resource of 20 bcf of natural gas
- Scoping commenced on a five-year project to deplete the Contingent Resource
Red Sky Energy has completed a strategic review at its Yarrow Gas Project in Australia’s Cooper Basin.
“We have commenced a strategic process to determine the most appropriate way to finance exploration activities on our larger 100 per cent Juniper oil and gas projects,” Managing Director and CEO Andrew Knox, said.
The Yarrow Gas Project is located within 25 kilometres of the gas tie in to the pipeline grid which supplies gas across the East Coast of Australia.
The gas pipeline is estimated to cost A$12.3 million. The company has reported discussions with Australian commercial banks who have indicated the debt-financing would be available for the entire amount.
On 20 May 2019, Red Sky completed the acquisition of four Cooper Basin oil and gas projects and since then has been working on a strategic review. The Yarrow Gas Project is a conventional natural gas project which contains a 2C contingent resource of 20 bcf of natural gas.
So far, three wells have been drilled to define the field with flow rates tested on well “Yarrow-1” delivering 3.6 mmcf per day of natural gas.
Red Sky has commenced scoping designed to deplete the Contingent Resource over a five-year period.
“We are targeting a five-year operation designed to deplete the existing Contingent Resource which, based on current gas prices, would deliver around $200m in revenue,” Andrew said.
The company expects to begin producing gas from Yarrow within three years after commencement. This achievement will be subject to completion of 3D seismic, interpretation and models, completion of a field development program, completion of development wells drilling and completion of production infrastructure and pipeline.