Red Sky Energy has advised its share purchase plan (SPP) closes tomorrow, with the funds raised to be applied to further develop and fast track the Killanoola oil project, South Australia.
The SPP allows existing eligible shareholders the opportunity to subscribe for Red Sky shares at the same price as offered under the recent placement.
Funds raised under the placement and SPP will be used to further expand seismic acquisition and additional drilling the wider project area at Killanoola, as well as for assessing new opportunities working capital and to meeting the costs of the placement and the SPP.
The Killanoola oilfield was discovered by the Killanoola-1 well in 1998 at a depth of 850 metres.
A petrophysical report commissioned by Red Sky on the Killanoola-1DW-1 well identified potentially 37 metres of additional oil bearing pay zones within the 149 metre thick Sawpit Sandstone.
The company is preparing to perforate and test these newly identified pay potential zones in the wells.
This testing, if successful, will allow Red Sky to book reserves associated with Killanoola-1DW-1 and Killanoola SE -1.
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