Rig Mobilization and Preparatory Work Begin at Yarrow 1

Red Sky Energy Limited (ASX: ROG) has announced the mobilization of a workover rig to the Yarrow 1 well site at the Innamincka Dome project. The rigging process is currently underway, with Santos Limited (ASX: STO), the project operator, spearheading preparatory activities for fracture stimulation aimed at enhancing production capacity.

Advancing Production with Targeted Interventions

The pre-fracture stimulation workover at Yarrow 1 is a significant step forward in the company’s growth strategy. The re-entry activities are designed to optimize gas production from high-potential formations, further strengthening Red Sky’s cash flow profile. This initiative follows the successful performance of Yarrow 3, which has generated over $3 million in production revenue since its inception.

Timeline and Expectations for Yarrow 1 Operations

The scope of work at Yarrow 1 includes cleaning the wellbore, re-sleeving operations to isolate high-potential zones, and conducting pressure diagnostics. These steps will ensure the well is ready for fracture stimulation, with all downhole activities expected to be completed by January 2025. The well is anticipated to be fully operational by Q2 2025, complementing existing revenue streams and supporting the company’s broader strategic goals.

Innamincka Dome: A Strategic Portfolio for Red Sky Energy

The Innamincka Dome project represents a cornerstone of Red Sky’s portfolio, where the company holds a 20% working interest across six Petroleum Retention Licences. The current efforts at Yarrow 1 aim to unlock additional value, with Santos leading operations and holding the remaining 80% stake.

Management Commentary

Red Sky’s Managing Director, Andrew Knox, expressed optimism about the progress at Yarrow 1:
“Santos' efforts in mobilizing the rig and initiating preparatory work are commendable. We are eager to see the outcomes of the fracture stimulation process, which we expect will drive significant production increases.”

Outlook and Future Plans

The Yarrow 1 workover is a critical milestone for Red Sky Energy, aligning with the company’s objective to enhance long-term cash flows from its Innamincka Dome portfolio. The successful completion of these activities is expected to provide a robust foundation for continued growth, with further updates anticipated during Q2 2025 as the well becomes operational.