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 Dome comprises a portfolio of six prospective petroleum permits near the town of Innamincka in northeast SA.
Including the Bengal agreement, Red Sky has now entered into conditional agreements to acquire 100% of all six permits.
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.