Red Sky Advances Yarrow Gas Development With Second Well Underway

Yarrow 5 Moves Directly Behind Yarrow 4

Red Sky Energy (ASX:ROG) has moved into the second drilling stage of its Yarrow development, with the Santos-operated Rig 184 spudding Yarrow 5 on the evening of 8 September. The well is planned to reach 2,775 metres, with total depth currently expected on 14 September, subject to operating conditions.

The timing is notable because the rig has shifted directly from Yarrow 4, which reached 2,908 metres on 6 September, to Yarrow 5 on the same dual-well pad. Red Sky Managing Director Andrew Knox said the sequence is intended to keep development costs down and shorten the path to production, although the company has not provided a quantified cost saving.

Three Wells Now Form the Development Program

Yarrow 5 is the second well under the company’s binding Authority for Expenditure with Santos. The third stage is Yarrow North 1, an in-wellbore re-entry within PRL 17 that was cased and suspended in 2008. Red Sky plans to perforate the well and carry out a single-stage fracture stimulation in the Tirrawarra Sandstone before connecting it to Yarrow 1 through an approximately 950-metre flowline.

First gas from Yarrow North 1 is targeted for early 2027. That target remains conditional on the re-entry and completion work, while the drilling timetable for Yarrow 5 can shift with weather, access windows and operational scheduling. The announcement contains no new well results, reserves estimate, production guidance or quantified financial impact.

Existing Production Gives the Campaign a Working Base

The development is being advanced around existing Santos-operated gathering, pipeline and processing infrastructure linking the Innamincka Dome to the Moomba facility. Yarrow 1 and Yarrow 3 are already producing gas and liquids into that network, and Red Sky holds a 20% working interest across six PRLs in the Innamincka Dome Joint Venture.

The immediate test is therefore operational rather than promotional: whether Yarrow 5 reaches depth as planned and what the subsequent evaluation and completion work shows. The next material milestones are total-depth confirmation, progress on the Yarrow North 1 re-entry and any update that turns the early-2027 first-gas target into a firmer production timetable.