Red Sky Energy re-entry plan for Yarrow 1 well

Red Sky Energy (ASX:ROG) is moving forward with the re-entry of the Yarrow 1 well in the Innamincka Dome, South Australia. The operation is set to commence in early November 2024. This strategic initiative aims to boost the company's production capabilities and cash flow significantly.

Red Sky Energy strategic re-entry and production outlook

Red Sky Energy is set to re-enter the Yarrow 1 well in November 2024, aiming to enhance production and cash flow. The well currently produces approximately 1.8 MMscf/d and is expected to increase to between 1.6 and 3.6 MMscf/d after fracture stimulation. The operation is a joint venture with Santos Limited, where Red Sky holds a 20% interest. The company anticipates completing downhole work by January 2025 and achieving full operational status by Q2 2025. This re-entry complements revenue streams from Yarrow 3 and aligns with Red Sky's growth strategy within the Innamincka Dome. The project benefits from a bilateral gas sales agreement with Origin Energy, and future plans include further exploration informed by new seismic data.

Executive insights on Yarrow 1 well re-entry

The re-entry of Yarrow 1 is expected to enhance our production capabilities significantly. We are optimistic about the potential increase in production rates following the planned fracture stimulation. This project aligns with our strategic growth objectives in the Innamincka Dome.