Red Sky Energy provided an update post the completion of the drilling of the Yarrow 3 well at the Innamincka Dome licenses (Innamincka). Red Sky holds 20% working interest in six PRLs (14, 17, 18, 180, 181, 182) at the Innamincka Dome in the Cooper Basin. Santos Limited advised the drilling operations at Yarrow 3 vertical well in PRL17 in the Cooper Basin have been completed.

Yarrow 3 drilling was an operational success, with no incidents. The 4-1/2 inches production casing has been set at a depth of 2744.5 metres and cemented as per the program. The well has been suspended, and the rig has been released.

The wireline data collected at Yarrow 3 will now be evaluated to set the forward plan. Santos Limited mobilised a rig and commenced drilling at Yarrow on 15 September 2022 with a total depth of 2748m reached on Thursday 22 September 2022. Yarrow has been estimated to have a 2C contingent resource of 18BCF.

A further 20BCF 2C of associated gas is estimated at the Flax oil field 8km to the south east of Yarrow (Flax is a shut in oil field with associated gas that has not yet been produced). Yarrow 3 is an appraisal gas well targeting the Tirrawarra sandstone as primary objective and the Patchawarra formation as secondary objective. A pipeline of approximately 18km would potentially be built to tie into the grid at Napowie to the south of the Yarrow gas field.