Red Sky Extends The Agreement To Acquire Innamincka Dome Project From Beach Energy

  • Jan 15, 2019 AEDT
  • Team Kalkine
Red Sky Extends The Agreement To Acquire Innamincka Dome Project From Beach Energy

On 15 January 2019, Red Sky Energy Limited (ASX: ROG) announced to extend the time to complete the Sale and Purchase Agreement (SPA) with Acer Energy Pty Ltd, subsidiary of Beach Energy Ltd (ASX: BPT), to acquire Acer’s interests in the Innamincka Dome Project in the Cooper Basin, South Australia until 31 January 2019. The agreement, undertaken via Red Sky’s wholly owned subsidiary Red Sky (NT) Pty Ltd, was signed in July 2018. The acquisition finalization is subject to the assignment of royalty obligations and native title obligations.

Red Sky Energy aims to acquire Beach Energy’s interest in the portfolio of Innamincka Dome Project which includes 100% stakes in PRL14 (Flax oil field which was previously producing), PRL17 (Yarrow gas field), PRL18 (Juniper oil field), PRL180 and PRL181. It also includes 75% stakes in PRL182. On 24 October 2018, Red Sky announced entering a SPA with Bengal Energy to acquire remaining 25% stakes in PRL182.

Red Sky Energy operates under Australia’s oil and gas sector involved in exploration, development and acquisition of vital oil and gas resources. The company owns 100% interests in the Gold Nugget gas well, located in the Wind River Basin in Wyoming, USA. The company is looking at Australasia and SE Asia for acquisition and buy-in opportunities.

Beach Energy is Australia’s oil and gas exploration company with ownership interests across Australia and New Zealand. It operates Cooper / Eromanga Basin, Otway Basin in South Australia and Victoria, Perth Basin, Bass Basin and New Zealand based Taranaki basin.

Post the successful acquisition, Red Sky Energy plans to resume the setup and planning for Innamincka Dome Project, which was shut down in 2015 due to the downturn in oil and gas markets. The key focus will be re-starting oil and gas production at Flax in the quickest possible time.  As evaluated by the company, the existing production facilities at Flax have a production capacity of 1K bopd and storage capacity of 2.4K bbl. The company also targets at evaluating the unexploited Yarrow and Juniper fields and remaining highly prospective tenements within the Innamincka Dome Project.

Red Sky entered a capital raising mandate with Taylor Collison in 2018 to raise up to $2.2 million, $1.6 million via share placement and $0.6 million via a rights issue. The placement and rights issue were offered at an issue price of 0.4 cents per ordinary share.

Red Sky Energy recorded a Net Operating Loss After Income Tax of $ 0.48 million for the period ended 30 June 2018 as compared to $0.40 million as on 30 June 2017.

Stock performance

The shares of Red Sky Energy traded flat today, closing the day’s session at A$0.002 with a market capitalization of A$1.65 million and 823.21 million outstanding shares. With a negative performance change of around 100% since its inception, the company’s stock offers a negative return of 60% over the last six months.


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