Red Sky Energy (ASX: ROG) Intersects Gas Pay at Yarrow 5

Red Sky Energy said its Yarrow 5 development well in South Australia’s Cooper Basin intersected gas pay in both primary reservoir targets, with the well now set to be cased and suspended ahead of future stimulation and completion.

The Santos-operated well reached a total depth of 2,802 metres measured depth on September 13 after spudding five days earlier from the same dual-well pad as Yarrow 4.

Red Sky holds a 20% working interest in Yarrow 5, while Santos owns the remaining 80% and operates the well. The development is located within PRL 17 on the Innamincka Dome.

Gas Pay Identified in Both Targets

Preliminary interpretation by Santos identified 6.4 metres of low-deliverability gas pay in the Patchawarra Formation, including 3.7 metres within the VC90 sand.

The VC90 interval recorded average effective porosity of 8.4% and average water saturation of 18.5%. Across the broader Patchawarra pay interval, effective porosity averaged 7.2%, with water saturation of 26%.

A further 2 metres of low-deliverability gas pay was identified in the Tirrawarra Sandstone, where effective porosity averaged 5.7% and water saturation 47.5%.

Using standard Cooper Basin cut-offs, Santos calculated total low-deliverability gas pay of 8.4 metres.

Under the more stringent conventional gas net-pay criteria, however, Yarrow 5 contained 2.4 metres of net pay, all within the Patchawarra Formation and entirely in the VC90 sand. No conventional net pay was calculated in the Tirrawarra Sandstone.

Downhole surveys indicated reservoir pressure of about 3,849 psi in the Patchawarra Formation and 3,618 psi in the Tirrawarra Sandstone.

Results Differ From Yarrow 4

The pay distribution differs materially from the neighbouring Yarrow 4 well.

Yarrow 4 intersected 5.2 metres of low-deliverability gas pay in the Tirrawarra Sandstone and just 0.2 metres in the Patchawarra Formation.

Both wells were drilled from the same pad and are planned for future fracture stimulation and completion.

Yarrow 5 is the second well in Red Sky’s three-well Yarrow development program.

Flow Testing Still Needed

The results remain preliminary and may change following further interpretation.

No drill-stem, production or flow testing has yet been completed, and no hydrocarbons or formation water were recovered to surface during drilling.

That means flow rates, gas composition and commercial deliverability remain unknown.

The announcement also included no estimate of reserves, contingent resources or prospective resources attributable to Yarrow 5.

Completion Timing Rests With Santos

Santos will determine when Yarrow 4 and Yarrow 5 are stimulated and completed.

Timing will depend on workover-rig availability, weather, site access and other operational requirements. The number of stimulation stages and final treatment design have not yet been determined.

Rig 184 is scheduled to move to the Willowie 2 well in late October.

Red Sky holds a 20% interest across six petroleum retention licences in the Santos-operated Innamincka Dome joint venture.

Yarrow 1 and Yarrow 3 are already producing gas into infrastructure connected to the Moomba processing facility.