Red Sky Energy will participate in the re-entry and workover of the Yarrow North 1 gas well in South Australia’s Cooper Basin, targeting incremental production from an idle asset suspended since 2008.
Yarrow North 1 was drilled as an exploration well and was cased and suspended in March 2008, but it has never produced gas.
The proposed program will perforate and hydraulically stimulate the Tirrawarra Sandstone formation before tying the well into the nearby Yarrow 1 flowline via a new 950-metre pipeline and metering skid.
The well offers a low-cost, near-field development opportunity. Santos operates the joint venture, with Red Sky holding a 20 per cent working interest alongside its major partner.
Operator estimates place gross incremental raw gas volumes at 0.52 billion cubic feet (Bcf), with Red Sky’s net share standing at approximately 0.10 Bcf. Initial flow rates are targeted at 2.1 million standard cubic feet per day.
The total project cost is estimated at AU$2.98 million, with Red Sky’s 20 per cent share coming to roughly AU$600,000.
Red Sky Managing Director Andrew Knox noted that accessing suspended infrastructure provides a capital-efficient avenue to boost gas supply.
“Yarrow North 1 is a low-cost way to bring an idle cased and suspended well into production,” Knox said.
“Using this existing wellbore and Santos-operated infrastructure already in place should keep our net capital exposure down and shorten the time to first gas. This is exactly the type of disciplined near-field work we intend to pursue in a proven part of the Cooper Basin.”
Technical evaluations indicate an 80 per cent confidence level that Yarrow North 1 is compartmentalised from existing production, ensuring the gas recovered represents fresh reserves rather than re-allocated output.
Subject to joint venture budget approvals and well integrity checks, field operations will run concurrently with the upcoming Yarrow 4 and Yarrow 5 drilling campaign, with first gas targeted for early 2027.
