Red Sky Energy has received approval from the South Australian Government Department for Energy and Mining to start an LRP production test at the Killanoola DW-1 well.
The well is located in Killanoola oil field (PRL-13) in the Otway basin.
Red Sky managing director Andrew Knox said he and the company welcomed the news.
“We are pleased to have received final government approval to begin production testing at DW-1,” Knox said.
“This will enable the company to test the linear rod pump and get live hydrocarbons to surface for assay.”
Contracts for the testing have been awarded, equipment is being mobilised to site and it is expected the testing will start on 10 December 2021.
This follows Red Sky raising funds for the application to further develop and fast track the Killanoola oil project in August.
Red Sky commissioned a petrophysical report commissioned on the Killanoola DW-1 well which found possibly 37 m of additional oil bearing pay zones within the 149 m thick Sawpit Sandstone.
The evaluation adds significantly to the currently perforated pay zone of 5 m.
Previously, flow tests of the well have recorded rates of up to 300 bopd.
The Killanoola oilfield was found in 1998 with the discovery of the Killanoola-1 well at a depth of 850 m.
Subscribe to Oil & Gas Today for the latest industry news.