Red Sky Energy Begins Site Works for Multi-Well Drilling at Innamincka Dome
Red Sky Energy has kicked off site preparation for a drilling campaign targeting two wells at Yarrow and one at Willowie in South Australia’s Innamincka Dome, aiming to leverage existing infrastructure for efficient gas production.
- Site works underway at Yarrow gas field
- Drilling campaign includes two Yarrow wells and one Willowie well
- Wells to be drilled directionally from a single pad
- Red Sky holds 20% interest in Innamincka Dome JV
- Drilling scheduled to start July 2026, subject to conditions
Site Preparation Marks Start of Innamincka Drilling Campaign
Red Sky Energy (ASX:ROG) has initiated site works at the Yarrow gas field in South Australia, signaling the commencement of its 2026 drilling program at the Innamincka Dome. This campaign targets two wells at Yarrow (Yarrow 4 and Yarrow 5) and one well at the nearby Willowie field, all operated by Santos Limited (ASX:STO). The two Yarrow wells will be drilled directionally from a single dual-well pad, an approach designed to optimise operational efficiency and reduce surface footprint.
Binding Agreements Underpin Drilling Plans
The drilling program follows Red Sky’s execution of binding Authorities for Expenditure (AFEs) with Santos, confirming financial commitments to both the Yarrow two-well development and the Willowie appraisal well. These agreements formalise Red Sky’s participation in the drilling campaign, which is expected to commence in July 2026, although the schedule remains subject to weather and access conditions.
Building on Established Production and Infrastructure
The campaign aims to build on existing production from Yarrow 1 and Yarrow 3 wells, which have been delivering gas into Santos’s gathering system since late 2025. Red Sky holds a 20% working interest across six Petroleum Retention Licences within the Innamincka Dome Joint Venture, benefiting from established infrastructure that connects directly to the Moomba processing facility. This setup is expected to reduce development costs and accelerate time to first production for the new wells.
Willowie Well Targets Proven Formations
Willowie, located on the same structural trend as Yarrow, targets the Patchawarra and Tirrawarra formations. If successful, the appraisal well will be tied into existing Santos-operated infrastructure, potentially expanding gas output from the region. Red Sky’s Managing Director Andrew Knox highlighted the tangible progress represented by the site works, emphasising the focus on efficient execution by Santos and the potential to enhance production performance.
Operational Timelines and Next Steps
While drilling is planned for July, the company cautions that timing may shift due to external factors such as weather. Red Sky will provide updates as key operational milestones are reached. The campaign represents a critical phase in Red Sky’s strategy to capitalise on the Innamincka Dome’s proven gas system, following recent capital raises that have bolstered funding for these activities.
Bottom Line?
Red Sky’s move to commence site works sets the stage for a pivotal drilling campaign that could reinforce its foothold in a proven gas region, with execution and results over the coming months critical to watch.
Questions in the middle?
- Will the dual-well pad drilling at Yarrow deliver operational efficiencies as planned?
- How might weather and access conditions impact the July drilling start date?
- What production volumes can be expected if the Willowie well successfully ties into existing infrastructure?
