Proactiveinvestors Australia Red Sky Energy Limited https://www.proactiveinvestors.com.au Proactiveinvestors Australia Red Sky Energy Limited RSS feed en Thu, 27 Jun 2019 00:26:49 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Red Sky Energy adds Yarrow Gas Project to its Cooper Basin pipeline ]]> https://www.proactiveinvestors.com.au/companies/news/222820/red-sky-energy-adds-yarrow-gas-project-to-its-cooper-basin-pipeline-222820.html Red Sky Energy Limited (ASX:ROG) will progress a low capex option to produce gas from the Yarrow project in the Cooper Basin of South Australia.

Yarrow contains a 2C Contingent Resource of 20 bcf of natural gas, which is worth about $200 million at current East Coast Australia prices.

The decision follows a strategic review of Yarrow and other projects within Red Sky’s Innamincka Dome projects.

READ: Red Sky Energy to target near-term revenues from Flax Oil & Gas Project

It will complement the company’s recent decision to target the Flax Oil and Gas Project to deliver near-term revenues.

With shares trading at 0.2 cents, the ongoing work and positive results in the Cooper Basin provide the basis for a re-rating.

“Potential for early revenues”

Managing director and CEO Andrew Knox said: “Our 100%-owned Yarrow Gas Project has the potential to be a very low capex gas project and we expect to be able to debt-finance the pipeline.

“We are targeting a five-year operation designed to deplete the existing Contingent Resource which, based on current gas prices, would deliver around $200 million in revenue.

“The Yarrow Gas Project complements our Flax Oil and Gas Project by providing the potential for additional early revenues built on very low capex.

“In addition to the above, we have commenced a strategic process to determine the most appropriate way to finance exploration activities on our larger 100% Juniper and 180/181/182 oil and gas projects.”

Scoping work underway

Red Sky has started scoping work on a five-year project to deplete the Yarrow Contingent Resource.

The project will require a 3D seismic survey to better define the field and enable computer modelling of reservoirs and production.

Major capex items required are six to 10 vertical wells and a pipeline to tie into the grid, which is estimated to cost $12.3 million.

The project is within 25 kilometres of the gas tie in to the pipeline grid which supplies gas across East Coast Australia.

Red Sky Energy's projects are near Innamincka in northeast South Australia.

Positive bank discussions

Positive initial discussions have been held with commercial banks to debt-finance the pipeline.

Three wells have been drilled to define the field with flow rates tested on the Yarrow-1 well delivering 3.6mmcf per day of natural gas.

The company believes it could begin producing gas from Yarrow within three years from commencement based on the following overlapping activities:

Completion of 3D seismic, interpretation and models (1 year); Completion of Field Development Plan (6 months); Completion of development wells drilling; Completion of production infrastructure and pipeline; and Start production within 3 years. READ: Red Sky Energy progresses strategic review targeting near-term oil & gas revenue

On May 20, 2019, the company completed the full acquisition of four Cooper Basin oil and gas projects known collectively as The Innamincka Dome Projects.

Into and post the acquisition, Red Sky has been working on a strategic review of the projects.

Review of larger projects

With decisions made in relation to Yarrow and Flax, a strategic process is underway to determine the most appropriate way to finance exploration activities at the larger Juniper and 180/181/182 oil and gas projects.

The company expects to report on outcomes of this process in the second half of 2019.

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Wed, 26 Jun 2019 15:28:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222820/red-sky-energy-adds-yarrow-gas-project-to-its-cooper-basin-pipeline-222820.html
<![CDATA[News - Red Sky Energy to target near-term revenues from Flax Oil & Gas Project ]]> https://www.proactiveinvestors.com.au/companies/news/222386/red-sky-energy-to-target-near-term-revenues-from-flax-oil--gas-project-222386.html Red Sky Energy (ASX:ROG) will target the Flax Oil and Gas Project in the prolific Cooper Basin of northeast South Australia to deliver near-term revenues.

This decision was taken after the company completed a strategic review on its Cooper Basin projects.

The Flax project contains a 2C Contingent Resource of 9.9 million barrels of oil and six wells at the project have historically produced over 180,000 barrels of oil grading 54 API.

Two development phases

Red Sky has outlined two development phases at Flax with the first designed to be a low capex, quick revenue starter project.

The second will target the substantial 2C contingent resource that could potentially be increased by using enhanced oil recovery (EOR) techniques.

“Option of restarting oil production”

Red Sky managing director and CEO Andrew Knox said: “We believe we have the option of restarting oil production from the existing six oil wells at our 100%-owned Flax Project.

“Given in place infrastructure this is likely to be very low capex and should provide for early cash flows, particularly in light of current Australian dollar oil prices.

“We also believe we have enhanced oil recovery options available that may increase our 2C contingent resource of 9.9 million barrels of oil to something substantially larger.

“And when you consider oil of the quality that has been historically produced from Flax is currently selling at around A$100 per barrel FOB Flax, that could result in very substantial revenues.”

READ: Red Sky Energy progresses strategic review targeting near-term oil & gas revenue

The company has also received consultant advice suggesting that natural gas within the reservoir, which amounts to 24 BCF, could be used to boost oil recovery by a factor of three to four times.

Test wells will be necessary to demonstrate the potential of the advice which lays the basis for the second phase strategy:

Test EOR options using gas recycling and horizontal drilling to increases flow rates; Complete engineering studies to determine likely up-front capital and operating costs; Secure offtake contacts to support development; and Begin construction of a larger operation. ]]>
Wed, 19 Jun 2019 15:12:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222386/red-sky-energy-to-target-near-term-revenues-from-flax-oil--gas-project-222386.html
<![CDATA[News - Red Sky Energy progresses strategic review targeting near-term oil & gas revenue ]]> https://www.proactiveinvestors.com.au/companies/news/222194/red-sky-energy-progresses-strategic-review-targeting-near-term-oil--gas-revenue-222194.html Red Sky Energy Limited (ASX:ROG) is nearing completion of a strategic review aimed at target near-term oil and gas revenue projects with low capex.

The review is primarily focused on its four 100%-owned oil and gas projects in the Cooper Basin with results expected to be released shortly.

As part of this process, low capex operations are being scoped for both the Flax and Yarrow projects.

Options with respect to financing the larger projects are also being explored with consideration of self-funding or partner arrangements or a combination of the two.

READ: Red Sky Energy completes transfer of Innamincka oil & gas licences from Beach

Red Sky managing director Andrew Knox said: “We are nearing completion of a strategic review on our four highly prospective owned oil and gas projects in Australia’s Cooper Basin.

“We are in a fortunate position with two development stage projects with large contingent resources and two major exploration projects with significant oil and gas potential.

“Our focus is on early cash flow opportunities with low capex.

“We expect to deliver two development options over the coming weeks that will demonstrate the optionality of our projects.”

READ: Red Sky Energy completes share placement to raise $342,000 for project development

Red Sky has also been exploring various options over the past few months with respect to refinancing the remediation bond attaching to the company’s projects.

Advanced discussions regarding a corporate bond instrument are in train with a view to limiting dilution associated with the financing.

The company expects to release further information relating to the corporate bond over the coming four weeks.

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Mon, 17 Jun 2019 15:18:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222194/red-sky-energy-progresses-strategic-review-targeting-near-term-oil--gas-revenue-222194.html
<![CDATA[News - Red Sky Energy completes transfer of Innamincka oil & gas licences from Beach ]]> https://www.proactiveinvestors.com.au/companies/news/216898/red-sky-energy-completes-transfer-of-innamincka-oil--gas-licences-from-beach-216898.html Red Sky Energy Limited (ASX:ROG) has completed the transfer of oil and gas licences at the Innamincka Dome project from Beach Energy Ltd (ASX:BPT) after receiving ministerial consent from the South Australian Mining for Energy and Mining.

The company has started re-commissioning planning for the Innamincka Dome Project with a focus on resuming oil and gas production at the Flax field as soon as possible.

READ: Red Sky Energy completes share placement to raise $342,000 for project development

The project comprises six highly prospective Petroleum Retention Licences (PRLs) near the township of Innamincka in northeast South Australia.

The company’s interest in this portfolio is 100%-owned and operated stakes in:

PRL14 – Flax oil field, which was previously producing; PRL17 – Yarrow gas field; PRL18 – Juniper oil field; PRL180; PRL181; and A 75% interest in PRL182 (remaining 25% being purchased from Bengal Energy Australia) ]]>
Thu, 21 Mar 2019 13:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216898/red-sky-energy-completes-transfer-of-innamincka-oil--gas-licences-from-beach-216898.html
<![CDATA[News - Red Sky Energy completes share placement to raise $342,000 for project development ]]> https://www.proactiveinvestors.com.au/companies/news/216804/red-sky-energy-completes-share-placement-to-raise-342000-for-project-development-216804.html Red Sky Energy Limited (ASX:ROG) has completed an oversubscribed placement to raise $342,000 before costs with firm commitments for 190 million new fully paid ordinary shares at an issue price of 0.18 cents per share.

The placement is being made with existing sophisticated investors within the company’s existing placement capacity under ASX listing rules 7.1 and 7.1a.

The funds will be allocated towards the company’s existing projects as well as working capital.

READ: Red Sky Energy applies for ministerial consent to acquire Innamincka Dome project

Current assets at Red Sky include working interest in the Gold Nugget Gas Project in Wyoming, USA.

The company is also seeking to acquire near field development assets onshore and offshore Australasia and South East Asia.

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Wed, 20 Mar 2019 15:18:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216804/red-sky-energy-completes-share-placement-to-raise-342000-for-project-development-216804.html
<![CDATA[News - Red Sky Energy applies for ministerial consent to acquire Innamincka Dome project ]]> https://www.proactiveinvestors.com.au/companies/news/216058/red-sky-energy-applies-for-ministerial-consent-to-acquire-innamincka-dome-project-216058.html Red Sky Energy Limited (ASX:ROG) has applied for Ministerial consent to transfer the Innamincka Dome petroleum project licences in the Cooper Basin of South Australia, from Beach Energy Ltd.

This application follows an amendment to the sale and purchase agreement (SPA) with Acer Energy Pty Ltd, a Beach subsidiary.  

The principal term states that Beach will continue to provide financial security for the licences and Red Sky will provide escrowed financial assurance of $800,000.

Conditions satisfied

Should Beach not be released from the financial security within six months the licences will revert to Beach and the escrowed funds will be forfeited.

Red Sky's CEO Andrew Knox has agreed to lend to the company the escrow amount as an unsecured loan which he has agreed will not become repayable in circumstances where the demand for repayment would create an event of insolvency for the company.

The amendment means all conditions have been satisfied under the SPA once ministerial consent has been granted and Red Sky is now proceeding with the application for Ministerial consent.

“A landmark event”

Company chairman Guy Le Page said: “Having the licences transferred to Red Sky is a landmark event which will provide the foundation for the future success of the company.

“The board thanks Mr Knox for his financial support which has enabled this funding arrangement to be negotiated.

“Mr Knox’s personal support is validation of and inspires great confidence in the quality of the Innamincka Dome Project.”

Six prospective petroleum tenements

The Innamincka Dome Project comprises a portfolio of six highly prospective petroleum tenements near the township of Innamincka in northeast South Australia.

The purchase of Beach’s interest in the Innamincka Dome Project is inclusive of all existing production infrastructure, storage tanks, yard and camp facilities.

Capital raising and issue of shares

The company has entered into a mandate with Taylor Collison on a best endeavours basis to place 190 million fully paid shares to raise $342,000 before associated costs.

In addition, Red Sky will issue 100 million shares to Taylor Collison upon completion of the arrangement with Beach.

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Fri, 08 Mar 2019 15:29:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216058/red-sky-energy-applies-for-ministerial-consent-to-acquire-innamincka-dome-project-216058.html
<![CDATA[News - Red Sky Energy agrees to extension of agreement to obtain oil & gas project ]]> https://www.proactiveinvestors.com.au/companies/news/212551/red-sky-energy-agrees-to-extension-of-agreement-to-obtain-oil--gas-project-212551.html Red Sky Energy Limited (ASX:ROG) has agreed to an extension in the time needed to complete a sale and purchase agreement for the Innamincka Dome oil & gas project in South Australia.

The company’s subsidiary Red Sky (NT) Pty Ltd is acquiring the project interests of Acer Energy, a Beach Energy Ltd (ASX:BPT) subsidiary.

These parties have agreed to extend the completion date to January 31, 2019.

READ: Red Sky Energy enters agreement to complete Innamincka acquisition

Innamincka Dome comprises six highly prospective petroleum tenements near the settlement of Innamincka in the state’s far northeast.

Beach’s interest includes a 100% owned and operated stake in

PRL14 – Flax oil field, which was previously producing;

PRL17 – Yarrow gas field;

PRL18 – Juniper oil field;

PRL80;

PRL181; and

A 75% interest in PRL182 with the remaining 25% being purchased from Bengal Energy Australia Pty Ltd.

Modern infrastructure

The intended purchase by Red Sky includes all existing production infrastructure, storage tanks, yards and camp facilities.

The infrastructure is modern and in excellent operating condition with the project having to close down in 2015 due to the downturn in oil and gas markets.

Focus on resuming production

Red Sky will initiate ‘re-start’ planning for the project immediately with a focus on resuming oil and gas production at Flax following completion of the acquisition.

The acquisition will afford Red Sky an opportunity to leverage the recovery from the oil price downturn by quickly returning quality shut-in assets to production at the Flax field.

Unexploited fields

It also intends to deliver options to evaluate the unexploited Yarrow and Juniper fields and evaluate remaining highly prospective tenements within the project

Completion of the acquisition is subject to the satisfaction of certain conditions precedent including the assignment of royalty obligations and native title obligations.

Joint company secretary appointed

Melbourne-based Red Sky has also appointed Pauline Moffat as joint company secretary.

She has experience in providing specialised accounting and company secretary 

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Mon, 14 Jan 2019 23:50:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212551/red-sky-energy-agrees-to-extension-of-agreement-to-obtain-oil--gas-project-212551.html
<![CDATA[News - Red Sky Energy enters agreement to complete Innamincka acquisition ]]> https://www.proactiveinvestors.com.au/companies/news/207724/red-sky-energy-enters-agreement-to-complete-innamincka-acquisition-207724.html Red Sky Energy Limited (ASX:ROG) has entered a conditional sale and purchase agreement with Bengal Energy Ltd (TSX:BNG) to acquire its 25% interest in a prospecting licence within the Innamincka Dome Project in South Australia.

The agreement was signed by Red Sky’s wholly-owned subsidiary Red Sky (NT) Pty Ltd and Bengal’s Australian subsidiary Bengal Energy (Australia) Pty Ltd, who holds the licence.

Innamincka acquisition

Innamincka Dome comprises a portfolio of six prospective petroleum permits near the town of Innamincka in northeast SA.

Red Sky previously executed a sale and purchase agreement to acquire an operating interest in these permits with Acer Energy Pty Ltd, a subsidiary of Beach Energy Ltd (ASX:BPT).

Including the Bengal agreement, Red Sky has now entered into conditional agreements to acquire 100% of all six permits.

READ: Red Sky Energy shares spike on oil and gas acquisition with near-term production potential

A consideration of $1 is payable by Red Sky for the Bengal licence, however, Red Sky will be responsible for all obligations arising after the transaction, including liabilities relating to decommissioning, abandonment, rehabilitation, remediation or restoration.

Red Sky is a Melbourne-based energy company with a 100% working interest in the Gold Nugget Gas Project in Wyoming, USA and is seeking to acquire near-development, onshore and offshore assets in Australia and Southeast Asia.

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Wed, 24 Oct 2018 02:34:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207724/red-sky-energy-enters-agreement-to-complete-innamincka-acquisition-207724.html
<![CDATA[News - Red Sky Energy shares spike on oil and gas acquisition with near-term production potential ]]> https://www.proactiveinvestors.com.au/companies/news/200435/red-sky-energy-shares-spike-on-oil-and-gas-acquisition-with-near-term-production-potential-200435.html Red Sky Energy Limited’s (ASX:ROG) shares are trading 67% higher intra-day at 0.5 cents after entering into a binding agreement to acquire the Innamincka Dome Project in the Cooper Basin, South Australia.

The Innamincka Dome Project comprises a portfolio of six highly prospective petroleum tenements (PRLs) near the township of Innamincka in northeast South Australia.

Red Sky’s subsidiary is acquiring a 100% interest in five PRLs and a 75% interest in another PRL from a subsidiary of Beach Energy (ASX:BPT).

Aerial view of Innamincka township

The purchase of Beach’s interest in the Innamincka Dome Project is inclusive of all existing production infrastructure, storage tanks, yards and camp facilities.

This infrastructure is modern and in excellent operating condition, with the project closed in 2015 due to the downturn in oil and gas markets.

The acquisition will afford Red Sky with a significant opportunity to leverage the recovery from the oil price downturn by quickly returning quality shut-in assets to production at the Flax field.

$2.2 million capital raising

The company is raising up to $2.2 million via a capital raising to fund the acquisition, comprising a $1.6 million share placement and a $600,000 non-renounceable rights issue, both at 0.4 cents per share.

Red Sky will initiate re-start planning for the Innamincka Dome Project immediately with a focus on resuming oil and gas production at Flax as soon as possible following completion of the acquisition.

Near-term upside potential

Red Sky chief executive officer and managing director Andrew Knox said: “The Innamincka Dome project provides clear near-term upside for Red Sky.

“It fits our strategy of acquiring near-term producing assets with proven prospectivity and delivers a strong position with clear optionality in the heart of Australia’s well renowned onshore Cooper Basin.

“Red Sky has been actively reviewing conventional production opportunities and the current round of M&A activity in the Australian oil and gas sector has created this splendid opportunity for us”.

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Tue, 10 Jul 2018 15:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200435/red-sky-energy-shares-spike-on-oil-and-gas-acquisition-with-near-term-production-potential-200435.html
<![CDATA[News - Red Sky Energy Ltd among ASX % Gainers intra-day ]]> https://www.proactiveinvestors.com.au/companies/news/161712/red-sky-energy-ltd-among-asx-gainers-intra-day-70010.html Monday's leading ASX % Gainers intra-day.

Company NameCodeLastChangeVolume Red Sky Energy Ltd ROG $0.002 100% 250,000 Triangle Energy (Global) Ltd TEG $0.002 100% 1,025,000 Pilot Energy Ltd PGY $0.003 50% 999,996 Vital Metals Ltd VML $0.024 50% 23,339,645 Orion Gold NL ORN $0.027 35% 22,489,106 Planet Gas Ltd PGS $0.004 33.33% 200,000 Carbon Energy Ltd CNX $0.016 33.33% 19,264,401 Deep Yellow Ltd DYL $0.005 25% 1,100,400 Sovereign Gold Company Ltd SOC $0.005 25% 1,300,000 Netccentric Ltd NCL $0.110 22.22% 104,000

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 25 Jul 2016 13:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/161712/red-sky-energy-ltd-among-asx-gainers-intra-day-70010.html
<![CDATA[News - Red Sky Energy is Wednesday's ASX Most Traded with 263 million ]]> https://www.proactiveinvestors.com.au/companies/news/161711/red-sky-energy-is-wednesdays-asx-most-traded-with-263-million-65810.html Wednesday's ASX Volume Leaders at the close.

Company NameCodeLastChangeVolume Red Sky Energy ROG $0.001 0% 263,002,303 Cove Resources CVE $0.013 8.33% 118,242,517 Ram Resources RMR $0.002 0% 77,980,388 Odin Energy ODN $0.023 -28.13% 60,196,246 Lynas Corporation LYC $0.120 20% 52,075,053 Freshtel Holdings FRE $0.002 100% 46,812,685 Dourado Resources DUO $0.010 11.11% 40,625,640 Galaxy Resources GXY $0.075 -2.60% 32,304,327 Healthscope HSO $2.710 2.65% 28,176,719 The a2 Milk Company A2M $0.990 -10.81% 28,158,683

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 26 Nov 2015 08:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/161711/red-sky-energy-is-wednesdays-asx-most-traded-with-263-million-65810.html
<![CDATA[News - Transaction Ltd tops Wednesday’s most traded ]]> https://www.proactiveinvestors.com.au/companies/news/161710/transaction-ltd-tops-wednesdays-most-traded-63237.html Wednesday’s leading volume stocks on the ASX.

NameCodeLastChangeVolume Transaction Limited ASX:TSN $0.005 66.7% 67,098,704 Red Sky Energy ASX:ROG $0.001 0% 39,096,921 LWP Technologies ASX:LWP $0.012 9.1% 35,256,237 South32 Limited ASX:S32 $1.805 0.8% 28,490,794 Telstra Corporation ASX:TLS $6.15 0.2% 27,345,110 Tiger Resources ASX:TGS $0.09 28.6% 25,202,536 Alumina Limited ASX:AWC $1.51 -1.3% 24,849,995 Metminco Limited ASX:MNC $0.004 0% 24,335,662 Fortescue Metals Group ASX:FMG $1.83 -4.2% 23,840,243 International Goldfields ASX:IGS $0.002 100% 22,451,078

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 02 Jul 2015 08:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/161710/transaction-ltd-tops-wednesdays-most-traded-63237.html
<![CDATA[News - Red Sky Energy’s oilfield acquisition valued at $30M ]]> https://www.proactiveinvestors.com.au/companies/news/161709/red-sky-energys-oilfield-acquisition-valued-at-30m-62943.html Red Sky Energy (ASX:ROG) has received an independent expert’s report valuing the 50% interest in the Cache Oilfield in Colorado that it is acquiring at $30 million.

The valuation is based on existing reserve of 19.58 million barrels of oil and an estimated recoverable reserve of between 5.1-6.0 million barrels.

Red Sky is acquiring the stake for between $1.2 million and $2.1 million through the issue of 1.2 billion to 2.1 billion ROG shares. This is dependent on the amount of capital raised as part of the transaction.

The company is raising a minimum of $700,000 and a maximum of $1.85 million through the issue of between 700 million and 1.85 billion shares at an issue price of $0.001 each.

Cache was discovered in 1964 by Amoco and is located in the Paradox Basin, Montezuma County, Colorado.

The field covers 1840 acres and is 16 kilometres east of the Greater Aneth Field (1.5 billion barrels original oil in place and peak production of 100,000 barrels of oil per day).

Production records indicate that approximately 5 million barrels of high quality, sweet oil have been produced from Cache.

The company intends to use modern horizontal-multilateral drilling and completion techniques to potentially enhance the oil production rates.

By drilling laterally within the reservoir intervals the company believes it can maximise the probability of intersecting zones of higher porosity and permeability leading to sustainable oil flow rates.

Red Sky is proposing to complete an initial two well program to test if modern drilling techniques can enhance oil recovery and flow rates as well as test the possibility of finding primary oil reserves in the southern part of the field.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 16 Jun 2015 13:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/161709/red-sky-energys-oilfield-acquisition-valued-at-30m-62943.html
<![CDATA[News - Red Sky Energy to earn into US oilfield ]]> https://www.proactiveinvestors.com.au/companies/news/161708/red-sky-energy-to-earn-into-us-oilfield-58682.html Red Sky Energy (ASX:ROG) has entered into a binding Terms Sheet to acquire rights to a 50% interest in the Cache Oilfield project in Colorado, USA.

Implementation of the transaction will be subject to shareholder and regulatory approvals as well as completion of capital raisings totalling $2.4 million before costs.

The Cache field produces from the Pennsylvanian age Ismay reservoir at a depth of 5,600 feet and comprises of a series of limestones, dolomites, shales and anhydrides deposited in a carbonate mound.

ROG has been informed that the field is currently producing at a rate of 12 barrels of oil per day from a single well.

Following completion of due diligence ROG will be able to announce information regarding reserves and resources.

It is proposed that modern horizontal drilling technology and extraction techniques be used in order to establish sustainable economic flow rates from new wells.

An initial well is proposed to be drilled to test the production model which, if successful, will be followed by further drilling and a 3D seismic program over the field.

The first stage of ROG's earn-in is an investment of $300,000, by way of loan advance to the Vendors, to be used for the purposes of an oil improvement program with the objective of improving production of the existing well.

As part of stage 1 ROG will seek to complete a placement to professional investors to raise up to $600,000 through the issue of 750 million shares at no less than $0.0008 per share.

If ROG makes the advance and does not proceed with the second stage investment, the first stage loan investment will be repaid from production within the project.

Subject to making the first stage loan investment, ROG will obtain the right to acquire a 50% interest in the project via staged payments.

The vendors will retain a 3% net wellhead royalty of production from the project.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 04 Nov 2014 16:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/161708/red-sky-energy-to-earn-into-us-oilfield-58682.html
<![CDATA[News - Red Sky Energy gains AFSL for Dubbo Solar One Project funding structure ]]> https://www.proactiveinvestors.com.au/companies/news/161707/red-sky-energy-gains-afsl-for-dubbo-solar-one-project-funding-structure-45349.html Red Sky Energy (ASX:ROG) has added an Australian Financial Services Licence to its armoury, necessary for the unitised ownership and funding structure for development of its Dubbo Solar One Project in central New South Wales.

Regulatory approvals for the funding structure will be in place within the next two months.

First module of the Dubbo Solar One Project is on schedule to be installed over the next two months by Red Sky subsidiary, Soleir.

Red Sky acquired SOLEIR, a developer of the utility scale photovoltaic solar power projects, in November 2012.

SOLEIR’S first project at Dubbo saw a positive Feasibility Study result, which confirmed the viability of a 2.5MW PV solar power station at Dubbo.

The study was based on a 35 year project life and estimated a capital cost estimate of $4.4 million and low operating costs. The project is expected to competitive with large scale wind projects.

A connection agreement with Essential Energy is expected in the coming weeks, and the first module of the Dubbo Solar One Project is on schedule to be installed over the next two months.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 09 Jul 2013 13:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/161707/red-sky-energy-gains-afsl-for-dubbo-solar-one-project-funding-structure-45349.html
<![CDATA[News - Red Sky feasibility demonstrates viability of solar power project in NSW ]]> https://www.proactiveinvestors.com.au/companies/news/161706/red-sky-feasibility-demonstrates-viability-of-solar-power-project-in-nsw-41601.html Red Sky Energy (ASX:ROG) has demonstrated the viability of constructing a 2.5 megawatt photovoltaic solar power project in Dubbo following a feasibility study that showed project internal rate of return between 15% to 23%.

The returns on the SOLEIR project are against a capital cost of $4.4 million with operating costs estimated at $37,000 per year rising to $67,000 per year in year 10.

A project life of 35 years was assumed in the Feasibility Study.

The expected returns are in line with development risks and the project is likely to be competitive with large-scale wind projects.

The Dubbo Solar One Project will use proven technology, comprising polycrystalline PV panels of approximately 15% efficiency. The project configuration is “fixed tilt”, whereby the rows of PV panels run east-west across the site and are permanently fixed in place to tilt north.

The capital cost estimate of $4.4 million comprises 85% supply items such as PV panels, inverters, support structure, transformers, switchgear, cabling and 15% installation costs.

The project revenue is a combination of the sale of electricity and sale of Large scale Generation Certificates (LGCs) as per the federal government's target of requiring renewables to provide 20% of electricity supply by the year 2020.

The Dubbo Solar One Project requires only five hectares, which is a significantly small portion of the total 24.9 hectares under lease. The site could ultimately accommodate an expanded project, of up to 12 MW.

The funding structure also provides for a unitised ownership to allow individuals to invest in the project.

The feasibility assumed 65% of the project is sold upon completion of construction to individual sophisticated investors, providing them with a relatively steady income over the project life with no development risk.

The funding structure is going through a regulatory approval process while grid studies are expected to be completed shortly.

It is proposed to have the first module of the Dubbo Solar One Project installed by mid year, with the remainder completed over the following nine months.

Red Sky acquired solar energy company, SOLEIR last November to broaden its energy business into the development of utility scale solar projects.

SOLEIR is a developer of utility scale PV solar power projects, and its first project is in the major regional city of Dubbo in central NSW.

Red Sky had a cash balance of $1.11 million at the end of last quarter.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 04 Apr 2013 16:50:00 +1100 https://www.proactiveinvestors.com.au/companies/news/161706/red-sky-feasibility-demonstrates-viability-of-solar-power-project-in-nsw-41601.html
<![CDATA[News - Red Sky Energy sees upside potential as New South Wales decision on Talma pilot draws near ]]> https://www.proactiveinvestors.com.au/companies/news/161704/red-sky-energy-sees-upside-potential-as-new-south-wales-decision-on-talma-pilot-draws-near-24843.html Red Sky Energy (ASX:ROG) has confirmed the strong upside potential in its Clarence Moreton Basin coal seam gas noting its share of contingent resources in PEL 457 stands at 188.7 petajoules.

At least part of this resource could be converted to reserves status once the company receives approval to drill the Talma pilot production well, which targets the highly prospective Kangaroo Creek, and carry out a long-term production test.

This will also add to the company’s existing proved, probable and possible reserves of 114 petajoules, which currently ranks as the fifth largest amongst the non-major companies.

Red Sky ranks above Dart Energy’s (ASX: DTE) 102 petajoules and below Senex Energy's (ASX: SXY) 249 petajoules reserves position. 

Additional reserves will serve to further strengthen Red Sky’s position amongst Australia’s diminishing ranks of coal seam gas players.

Recent acquisitions of Eastern Star Gas Eastern Star Gas (ASX: ESG) by Santos (ASX: STO) and Bow Energy (ASX: BOW) by Arrow Energy have continued the trend of bigger CSG players gobbling up smaller companies as they seek to boost their reserves for their liquefied natural gas projects.

The New South Wales Department of Trade and Investment, Resources and Energy is currently assessing Red Sky’s application to carry out the Talma pilot well after requesting additional information early this year and is expected to make a decision soon.

The Talma pilot well will drill out the existing fragmented Talma-1 core hole and expose the Kangaroo Creek formation over a 90 metre interval, from 480 metres to 570 metres deep.

Once drilling is completed, a wellhead and flare will be installed and the well put into production.

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Fri, 03 Feb 2012 10:51:00 +1100 https://www.proactiveinvestors.com.au/companies/news/161704/red-sky-energy-sees-upside-potential-as-new-south-wales-decision-on-talma-pilot-draws-near-24843.html
<![CDATA[News - Red Sky Energy fifth largest with 3P gas reserves of 114PJ among non majors ]]> https://www.proactiveinvestors.com.au/companies/news/161703/red-sky-energy-fifth-largest-with-3p-gas-reserves-of-114pj-among-non-majors-22332.html Red Sky Energy (ASX: ROG) is now the fifth largest non-major company with gas in eastern Australia with 3P reserves of 114 petajoules in the Clarence Moreton Basin in northeast New South Wales.

Managing director Rohan Gillespie told Proactive Investors today this is good news for the company as domestic power companies are finding it difficult to source gas for supply.

“It means because we have reserves in eastern Australia they have a significant scarcity value, because the LNG projects in Gladstone that are going ahead are pretty much soaking up all the available gas in eastern Australia,” he said.

“The majors probably account for in excess of 95% of the gas in eastern Australia and so that’s creating a scarcity value, and on top of that domestic power companies are looking for gas to put into domestic power generation and they’re finding there’s not a lot of it around.

“All of this is good news for Red Sky because we’re one of the few companies in eastern Australia that is sitting on gas reserves with expectations of proving up more.”

Red Sky ranks above Dart Energy’s (ASX: DTE) 102 petajoules and below Senex Energy's (ASX: SXY) 249 petajoules reserves position. 

With the recent takeover of Eastern Star Gas (ASX: ESG) by Santos (ASX: STO) and Arrow Energy’s proposed takeover of Bow Energy (ASX: BOW), there are now only a small number of independent companies in the gas sector with 3P gas reserves in eastern Australia.



Clarence Moreton Basin Prospectivity

The Clarence Moreton Basin has shown to have gas at a number of intervals from a depth of about 3000 metres to surface. Red Sky is targeting the shallow gas resource as well as the Walloon coals.

The top non-major company with gas in eastern Australia, Metgasco (ASX: MEL), has been operating in the basin for pretty close to 10 years and is targeting the Walloon coals and deeper intervals.

“I think what both of us [Red Sky and Metgasco] have shown is that the basin is very prospective for gas and we’re both driving towards getting into production in the near-term,” Gillespie said.

Metgasco took out the number one spot with 2,542 petajoules of 3P gas reserves, followed by Molopo Energy (ASX: MPO) with 817 petajoules and Westside Corporation (ASX: WCL) with 369 petajoules.

 

Forward Plans

Red Sky is currently planning to drill the Talma pilot well within PEL 457 in the prospective Kangaroo Creek Sandstone gas resource, also in the Clarence Moreton Basin.

The aim of the pilot production well is to perform a long term production test to determine the magnitude and deliverability of the resource.

Red Sky announced a significant new discovery within PEL 457 earlier in the year.

“It was quite an exciting discovery, it hadn’t been discovered before in the basin, we got quite good gas flows to surface when we put it under test and did quite a comprehensive technical study based on the findings from that well,” Gillespie said.

“So we want to go back and put it under a long term test, it’s called a pilot well, with the expectation of proving up some reserves and looking to get that power into local power generation and getting to market as soon as possible.”

Gillespie said Red Sky believes it can reach an investment decision on a small power station within two years.

The company recently submitted an application for regulatory approval of the Talma pilot well and, once regulatory approval has been granted, it will seek a suitable drilling rig to undertake the pilot.

Red Sky’s proposed drilling programs are targeted at significantly increasing its reserves position and demonstrating the producibility of its gas resources, to become a major gas supply source.



Cash Position

At the end of June the company had A$1.3 million in cash, and in the September quarter Red Sky secured a $3 million funding facility with U.S. investment fund YA Global Master SPV in exchange for the issue of shares. 

With the facility, Red Sky has sufficient cash reserves to fund the proposed Talma pilot test.

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Mon, 21 Nov 2011 12:44:00 +1100 https://www.proactiveinvestors.com.au/companies/news/161703/red-sky-energy-fifth-largest-with-3p-gas-reserves-of-114pj-among-non-majors-22332.html
<![CDATA[News - Red Sky Energy identifies potential gas resource in Clarence Moreton Basin ]]> https://www.proactiveinvestors.com.au/companies/news/161702/red-sky-energy-identifies-potential-gas-resource-in-clarence-moreton-basin-15812.html Red Sky Energy (ASX: ROG) has its eye on near term production, and has identified the potential for a significant gas resource contained within the Kangaroo Creek sandstones in the Clarence Moreton Basin.

Red Sky said analysis of cores within the sandstone are laterally extensive, gassy in the depth interval from 480 metres to 563 metres and could flow gas to surface un-stimulated at rates that could be economic.

Based on these positive results, Red Sky has proposed a single well pilot be implemented adjacent to the Talma #1 well site, and post approvals, the company plans to drill the pilot well during June/July 2011 and have the pilot operating in August/September 2011.

Rohan Gillespie, managing director, said "The results to date have been very encouraging for a viable resource.

"We are keen to test this play as soon as possible and demonstrate its ability to produce gas.”

Gillespie has significant experience in the sector, considering his previous experience as vice president and chief operating officer in charge of BHP Billiton's (ASX: BHP) coal seam gas business, and joined Red Sky as executive director in January 2010. 

The Red Sky company strategy is to build into a significant player in the rapidly expanding coal seam gas industry in Australia.

 

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Thu, 28 Apr 2011 13:52:00 +1000 https://www.proactiveinvestors.com.au/companies/news/161702/red-sky-energy-identifies-potential-gas-resource-in-clarence-moreton-basin-15812.html
<![CDATA[News - Red Sky Energy targets shallow gas in the Clarence Moreton Basin ]]> https://www.proactiveinvestors.com.au/companies/news/161701/red-sky-energy-targets-shallow-gas-in-the-clarence-moreton-basin-15382.html Red Sky Energy (ASX: ROG) has targeted shallow gas at the company’s prospects in the Clarence Moreton Basin in northeast New South Wales and southeast Queensland.

The company said the resource is less than 600 metres deep and the formation is widespread of up to 300 metres thick at Kangaroo Creek.

Red Sky has a drilling program underway in the area to earn a 70% interest in four permits.

Red Sky said that the sandstones show good permeability that may not require artificial stimulation such as hydraulic fracturing, with gas production expected to involve low amounts of water extraction.

Cores obtained from the site are undergoing testing and analysis by a company specialist with results due soon.

The company is also assessing the feasibility of a small scale power station that could be located in close proximity to the gas resource, which could present a near term opportunity to generate revenue through commercialisation.

 

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Mon, 11 Apr 2011 14:47:00 +1000 https://www.proactiveinvestors.com.au/companies/news/161701/red-sky-energy-targets-shallow-gas-in-the-clarence-moreton-basin-15382.html
<![CDATA[News - Red Sky Energy drilling confirms gas content in Annvale #1 well ]]> https://www.proactiveinvestors.com.au/companies/news/161700/red-sky-energy-drilling-confirms-gas-content-in-annvale-1-well-14185.html Red Sky Energy (ASX: ROG) has determined the Annvale #1 well has gas content similar to the Talma #1 and Riflebird E06 wells from drilling results in the Clarence Moreton Basin.

The coals in the Clarence Moreton Basin show high diffusion based on the laboratory testing of gas content for Talma #1. Diffusion is important for the transmission of gas through the coal.

Total gas content can be determined for the Annvale #1 well without waiting for the usual six week desorption period. This verifies Red Sky has a substantive in-place gas resource within its permits.

The company is focused on coal seam gas exploration, and has extensive acreage in Queensland and New South Wales, which potentially could supply into the emerging LNG industry in eastern Australia.

The Clarence Moreton Basin drilling program is currently ongoing, with Red Sky able to earn a 70% interest in four permits.

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Thu, 24 Feb 2011 09:25:00 +1100 https://www.proactiveinvestors.com.au/companies/news/161700/red-sky-energy-drilling-confirms-gas-content-in-annvale-1-well-14185.html
<![CDATA[News - Red Sky Energy encounters gassy seams at Talma #1 well in Clarence Moreton basin ]]> https://www.proactiveinvestors.com.au/companies/news/161699/red-sky-energy-encounters-gassy-seams-at-talma-1-well-in-clarence-moreton-basin-12432.html Substantially more visibly gassy seams have been encountered by Red Sky Energy (ASX: ROG) in the coring of the Talma #1 well in the Clarence Moreton basin.

The company said the net total thickness of coal so far is 21 metres across 25 seams, with a the total depth of 788 being reached, with a planned total depth of 860 metres.

To test for gas content, core samples have been taken from each of the 25 seams for testing.

The company is focused on coal seam gas exploration, and has extensive acreage in Queensland and New South Wales, which potentially could supply into the emerging LNG industry in eastern Australia.

The Clarence Moreton Basin is currently ongoing, with Red Sky able to earn a 70% interest in four permits.

Last month the company raised A$1.4m for continued exploration at the Clarence Moreton Basin.

 

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Thu, 09 Dec 2010 12:12:00 +1100 https://www.proactiveinvestors.com.au/companies/news/161699/red-sky-energy-encounters-gassy-seams-at-talma-1-well-in-clarence-moreton-basin-12432.html
<![CDATA[News - Red Sky Energy to commence coring at Clarence Moreton ]]> https://www.proactiveinvestors.com.au/companies/news/161698/red-sky-energy-to-commence-coring-at-clarence-moreton-12042.html Coal seam gas-focussed explorer Red Sky Energy (ASX: ROG) has mobilised over the Talma #1 well in PEL 457 and will commence coring this weekend at a depth of 480 metres, with a planned total depth is 820 metres.

Red Sky has a farm-in agreement with Clarence Moreton Resources Pty Ltd, which covers the permits PEL 457, 478, 479 and PSPA 37.

The key commercial terms of the farm-in are the right to earn an initial 30% interest in each permit by drilling one well and an additional 40% interest in each permit by spending $3m on further exploration.

Other terms include the right to buy out the remaining interest, Red Sky is the Operator, and the agreement includes both coal seam gas and conventional oil/gas rights.

Red Sky aims to become a significant player in coal seam gas in Australia by identifying gas resources through the expansion and exploration of its acreage portfolio.

 

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Fri, 26 Nov 2010 09:08:00 +1100 https://www.proactiveinvestors.com.au/companies/news/161698/red-sky-energy-to-commence-coring-at-clarence-moreton-12042.html
<![CDATA[News - Red Sky Energy to spud well at Clarence Moreton Basin ]]> https://www.proactiveinvestors.com.au/companies/news/161697/red-sky-energy-to-spud-well-at-clarence-moreton-basin-10636.html Coal seam gas-focussed explorer Red Sky Energy (ASX: ROG) is planning to spud its first well in the Clarence Moreton Basin in north east NSW on Tuesday 12 October, as weather conditions in the area have improved allowing work to proceed.

Red Sky has a farm-in agreement with Clarence Moreton Resources Pty Ltd, which covers the permits PEL 457, 478, 479 and PSPA 37.

The key commercial terms of the farm-in are the right to earn an initial 30% interest in each permit by drilling one well and an additional 40% interest in each permit by spending $3m on further exploration.

Other terms include the right to buy out the remaining interest, Red Sky is the Operator, and the agreement includes both coal seam gas and conventional oil/gas rights.

Red Sky aims to become a significant player in coal seam gas in Australia by identifying gas resources through the expansion and exploration of its acreage portfolio.

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Fri, 08 Oct 2010 05:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/161697/red-sky-energy-to-spud-well-at-clarence-moreton-basin-10636.html