Red Sky Energy, on behalf of operator Santos, has advised that a priority site for the next phase of well drilling at the onshore Cooper Basin Innamincka Dome projects in South Australia has been identified.
The company outlined that reprocessing of 2D seismic over the Yarrow gas field is nearing completion, with the final location to be decided after re-interpretation of the data.
Santos reported that the Yarrow well is scheduled to be drilled in the second half of 2021, with a 20km pipeline potentially built to tie into the grid at Napowie, located south of the Yarrow gas field, if proven commercial.
Yarrow has previously been estimated to have a 2C contingent resource of 18 billion cubic feet (BCF), and a further 20 BCF 2C of associated gas is estimated at the Flax oil field, 8km south east of Yarrow.
In September 2019, Red Sky executed a farm-out and entered into a a joint operating agreement with Santos covering the Innamincka Dome projects.
As part of the farm-out agreement, Santos is set to earn 80 per cent interest and operatorship in Red Sky’s onshore Cooper Basin retention licences PRL 14, 17, 18, 180, 181 and 182, collectively known as the Innamincka Dome projects.
Red Sky originally gained possession of Yarrow in 2019 when it purchased a group of licences in the Cooper Basin from Beach Energy.
Along with the nearby Flax oil field, Red Sky announced plans to restart production at the Yarrow project.
With the goal to start production within three years, Red Sky outlined that it intended to acquire a 3D seismic survey to increase field definition, complete a field development plan, drill a series of wells and deliver production infrastructure that will include a pipeline as part of its plan to deplete the gas resource.