Red Sky Energy has entered into a binding agreement with Santos for the Willowie appraisal gas well.
Located within the Innamincka Dome in South Australia’s Cooper Basin, the project is designed to leverage existing infrastructure to accelerate it towards commercial gas production.
The Willowie appraisal is a high-impact project positioned adjacent to the company’s producing Yarrow gas field.
By targeting the same proven Patchawarra and Tirrawarra formations, Red Sky aims to replicate the operational success seen at Yarrow, which was tied into the regional network in late 2025.
Red Sky Managing Director, Andrew Knox, said: “Following the execution of the Yarrow AFE, Willowie represents the next step in our development strategy within the Innamincka Dome.
“The field lies in a highly prospective area with producing fields surrounding the structure. The well targets the same producing formations and sits within existing infrastructure, providing a capital-efficient pathway to potential near-term production.”
According to internal joint venture estimates, the Willowie well has an expected initial production rate (P50) of approximately 2.13 million standard cubic feet per day (MMscf/d) on a 100 per cent basis, with an ultimate recovery estimate of roughly 3.09 billion cubic feet (Bcf) of raw gas.
The gross cost for the drilling, fracture stimulation, and completion of the well is estimated at approximately AU$8.7 million.
Red Sky has committed to a 20 per cent participating interest, resulting in a net cost of about AU$1.75 million, which is fully funded through the company’s recent capital raising initiatives.
The Innamincka Dome’s proximity to established gas-gathering networks and the Moomba facility is a key advantage, significantly reducing the time and capital required for well development.
As the joint venture finalises the operational schedule, Red Sky is focused on executing the drilling program to build upon the strong production performance currently demonstrated at the nearby Yarrow 1 and Yarrow 3 wells.
Successful drilling at Willowie is expected to provide a crucial boost to the company’s near-term revenue and cash flow outlook.