Red Sky Energy (ROG: ASX) announced on 9 September 2026 its decision to participate in the Yarrow North 1 well re-entry, an in-wellbore (IWB) opportunity within the producing Yarrow gas field in the Innamincka Dome, South Australia. Red Sky Energy is an Australian oil and gas exploration and production company focused on developing its domestic energy assets. This re-entry involves an existing well that was cased and suspended in March 2008 and has never produced gas. The program aims to perforate and hydraulically stimulate the Tirrawarra Sandstone, establishing a new drainage point in a portion of the field not expected to be accessed by other wells, and is separate from the Yarrow 4 and Yarrow 5 wells currently in the drilling program.
The proposed work targets gross incremental raw gas volumes of 0.52 Bcf (best estimate) at an initial rate of 2.1 MMscf/d, with Red Sky’s 20% net share anticipated to be approximately 0.10 Bcf. The gross project cost is estimated at A$2.98 million, with Red Sky’s net share being approximately A$0.60 million. The well is planned to be tied into the existing Yarrow 1 flowline, and the work is scheduled to be executed concurrently with the Yarrow 4 and Yarrow 5 wells. First gas is targeted for early 2027, subject to Joint Venture approval and operational scheduling.
Red Sky Managing Director, Andrew Knox, commented that Yarrow North 1 represents a “low-cost way to bring an idle cased and suspended well into production,” highlighting the incremental nature of the gas and the benefit of utilising existing infrastructure to keep capital exposure down and shorten time to first gas. Red Sky holds a 20% working interest in PRL 17, operated by Santos (ASX:STO), within the Innamincka Dome Joint Venture. These projected volumes are operator-prepared estimates and are not being booked as Reserves by Red Sky at this stage. The opportunity is also subject to supplementary budget approval and a Joint Venture Authority for Expenditure (AFE) vote, with pre-frac workover including wellbore integrity checks to be completed.
