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

The company is initially focused on near-term cash flow projects with low capex.
Red Sky Energy progresses strategic review targeting near-term oil & gas revenue
Red Sky’s projects in the Cooper Basin, South Australia

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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