Red Sky Energy has begun drilling the Yarrow 4 development well in the Cooper Basin, marking the first of two wells planned for the Yarrow field development program. The drilling is operated by Santos, with Red Sky holding a 20% interest.
- Yarrow 4 drilling started 31 August 2026
- Drilling expected to take around 10 days
- Yarrow 5 to follow immediately from same pad
- Red Sky holds 20% interest; Santos operates
- Program builds on existing Yarrow production
Yarrow 4 Spud Marks New Phase in Cooper Basin
Red Sky Energy (ASX:ROG) has kicked off drilling of the Yarrow 4 development well within PRL 17, a key step in expanding production from the Yarrow gas field in South Australia's Cooper Basin. The Santos-operated Rig 184 spudded Yarrow 4 early on Monday 31 August 2026, initiating a drilling program expected to last about 10 days, though this timeline remains subject to weather and operational factors.
Dual-Well Pad Strategy to Accelerate Development
The Yarrow 4 well is the first of two planned wells to be drilled from a dual-well pad, with Yarrow 5 scheduled to follow immediately after completion of Yarrow 4. Both wells form part of a binding Authority for Expenditure (AFE) agreement executed with Santos earlier this year, underpinning the development strategy within the producing Yarrow field. Red Sky holds a 20% working interest in the project, with Santos as operator.
Building on Existing Production Infrastructure
This drilling campaign follows the successful tie-in and commissioning of Yarrow 1 in November 2025, which, along with Yarrow 3, is currently producing gas and liquids into the Santos-operated gathering system. The Innamincka Dome, where these PRLs are located, benefits from established pipeline and processing infrastructure connecting directly to the Moomba facility, helping to reduce development costs and time to first production.
Operational Risks and Market Updates
Red Sky’s Managing Director Andrew Knox acknowledged the delays caused by wet weather earlier in the Cooper Basin but expressed optimism about the drilling progress. He emphasised that the company will keep the market informed of any significant events or operational milestones as they occur. The timing estimates provided by Santos remain conditional, reflecting potential changes due to weather, access, and scheduling.
Bottom Line?
As drilling advances at Yarrow, Red Sky’s ability to maintain schedule amid Cooper Basin’s variable conditions will be critical to unlocking near-term production growth.
Questions in the middle?
- Will Yarrow 4 and 5 deliver expected production volumes once operational?
- How might weather and operational delays impact the overall development timeline?
- What are the implications for Red Sky’s cash flow and reserves from these wells?