Red Sky Energy Ltd (ASX: ROG), an Australian oil and gas company focused on exploration and development, has announced the completion of drilling operations at its Killanoola-2 (KN2) oil appraisal well, located in PRL-13 in South Australia’s onshore Otway Basin. The well reached a total depth of 1,044 meters without incident and has been cased and suspended for potential future production. Wireline logs were completed, utilising GR, Sonic, Resistivity, Density and Neutron tools.
Petrophysical analysis has confirmed the presence of hydrocarbons in the Upper Sawpit Sandstone. However, the analysis indicated low permeability, similar to that observed in prior wells in the area. As a result, the company has decided against proceeding with contingent Drill Stem Tests (DSTs). The evaluation also highlighted high water saturations and a high degree of shale interbedding, which reduces connectivity within the reservoir.
The company intends to use a workover rig to complete both KN2 and the nearby DW1 well. Additionally, Red Sky Energy will evaluate the potential for stimulation, subject to regulatory approval. According to Managing Director Andrew Knox, the company’s next priority is testing the production potential through a fit-for-purpose completion and possible stimulation plan.
Red Sky remains optimistic about unlocking value at Killanoola through targeted, regulatory-compliant artificial lift and stimulation. The company is reporting Total Petroleum Initially In-Place (PIIP) consistent with the SPE-PRMS classification framework and encourages investors to visit their website for more information.
