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.