Red Sky Energy (ROG: ASX), an oil and gas exploration and production company focused on developing assets in proven hydrocarbon basins, has announced the commencement of site preparation works at the Yarrow gas field in South Australia. This marks the start of field operations for its Innamincka Dome drilling campaign, where the company holds a 20% working interest across six Petroleum Retention Licences (PRLs). Drilling operations are anticipated to begin in July 2026, subject to final operational scheduling and weather conditions.
The drilling program will encompass two new Yarrow wells, Yarrow 4 and Yarrow 5, within PRL 17, and the Willowie appraisal well in PRL 18. Both Yarrow wells are planned for directional drilling from a single, dual-well pad location. This operational phase follows Red Sky’s execution of binding Authorities for Expenditure (AFEs) with operator Santos Limited (ASX:STO) for both the Yarrow two-well program and the Willowie appraisal well, as previously announced.
Andrew Knox, Red Sky’s Managing Director, commented on the progress, stating, “Site works commencing is a tangible step forward for the Innamincka program. We are drilling into a proven gas system with existing infrastructure in place.” The Innamincka Dome is a proven producing region within the Cooper Basin, featuring Santos’ established gas-gathering, pipeline, and processing infrastructure.
Currently, Yarrow 1 and Yarrow 3 are producing gas into the Santos-operated gathering system. The planned Yarrow development builds upon this existing production. The Willowie well, targeting the Patchawarra and Tirrawarra formations, is located within the same structural trend as Yarrow, and if successful, is expected to be connected to the existing infrastructure, enhancing the project’s overall potential.
