Oil and gas exploration and development company, Red Sky Energy, has received approval from the Department for Energy and Mining (DEM) to commence operations at the Killanoola Oil Project, located in the Penola Trough, South Australia, within Red Sky’s newly acquired PRL13.

The news follows the company’s announcement on 17 May 2021 of the completion of an inspection at the Killanoola – 1 DW-1 well. The inspection of the above ground linear rod pump (LRP) at the well found the internal components of LRP to be in good condition and mechanically sound.

Red Sky states that the control box and the electrical system including the motor have been scheduled for recommissioning if the rod test is successful. With this government approval, the rod components can be checked and potentially declared fit for purpose.

Post this certification, Red Sky is planning a short test run and if the testing performs well, the pump will be turned on for an extended production test. During that period the company will be able to ascertain more about the quality of the oil, the reservoir and also test enhanced oil recovery solutions.

And once this test period is completed, Red Sky plans to re-enter the well to perforate the newly identified 37 metres of potential pay as well as the 16 metres of potential pay identified at SE-1. If successful, this should increase production rates significantly.

Red Sky Managing Director, Andrew Knox, said the team is very pleased to have received government approval to commence operations and test the rods at DW-1.

“Further approvals will be required as we progress, but next steps post this testing in the short term are recommissioning the pump and acquiring topside equipment. We are pushing to extract full value from the resources at Killanoola as soon as possible,” Mr Knox said.

Red Sky Energy acquired the Killanoola Oil field (PRL-13) from Beach Energy in November 2020.