Red Sky Energy (ASX:ROG) Endorses Santos Recommendation on Cooper Basin Appraisal Well

Aditi Sarkar

28 October 2026 05:03 PM AEDT

Red Sky Energy (ASX:ROG) Endorses Santos Recommendation on Cooper Basin Appraisal Well

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Highlights

The Willowie 2 appraisal well in PRL 18 will be plugged and abandoned.
Log evaluation found only thin intervals of low-deliverability gas and no conventional pay.
Stimulation, completion and connection costs for the well will not be incurred.
The result has no bearing on the Yarrow field, where Yarrow 1 and Yarrow 3 continue to produce.

Red Sky Energy Limited (ASX:ROG) has announced that the Willowie 2 appraisal well in PRL 18, Innamincka Dome, Cooper Basin, South Australia, will be plugged and abandoned. The well is operated by Santos, which holds 80%, with Red Sky holding 20%.

Drilling and Evaluation Results

Willowie 2 spudded on 19 October 2026 and reached a total depth of 2,687m on 25 October 2026, on schedule. It targeted Permian sandstones in the Toolachee and Patchawarra formations and the Tirrawarra Sandstone.

Log evaluation showed only thin intervals of low-deliverability gas in the Toolachee and Patchawarra formations, with low porosity. The Tirrawarra Sandstone was tight, and a pressure survey did not obtain valid reservoir pressures. No conventional pay was interpreted, and the result did not meet the operator's minimum requirement to case and suspend the well.

Decision and Cost Impact

Santos recommended plugging and abandoning the well, and Red Sky endorsed that recommendation. As a result, the stimulation, completion and connection components of the Willowie 2 budget will not be incurred.

Rig 184 will be released after abandonment operations are complete.

Innamincka Dome Production Base

Red Sky said the result has no bearing on the Yarrow field. Yarrow 4 and Yarrow 5 remain cased and suspended ahead of stimulation, while Yarrow 1 and Yarrow 3 continue producing gas.

Red Sky holds a 20% working interest across six PRLs in the Santos-operated Innamincka Dome Joint Venture. Santos-operated infrastructure links directly to the Moomba facility, which the company says reduces development costs and time to first production.

Key Takeaways

Willowie 2 did not find commercial gas and will be abandoned.
Avoided completion and stimulation costs limit the financial impact.
Production from Yarrow 1 and Yarrow 3 is unaffected.
Yarrow 4 and Yarrow 5 remain the next development focus.

FAQs

Q: Why is Willowie 2 being abandoned?

A: No conventional pay was found and the result did not meet the requirement to case and suspend the well.

Q: Who operates the well?

A: Santos, which holds 80%, with Red Sky holding 20%.

Q: How deep was the well drilled?

A: It reached a total depth of 2,687m.

Q: Does the result affect the Yarrow field?

A: No, Red Sky says it has no bearing on Yarrow.

Q: Which Yarrow wells are producing?

A: Yarrow 1 and Yarrow 3.

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