RED SKY ENERGY LIMITED - ASX: ROG

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Description

Red Sky Energy Limited (ASX code ROG) is an exploration company that is focussed on coal seam gas (CSG). Over the period from July to October 2009 Red Sky acquired significant exploration acreage holdings across a number of basins.

Darling Basin Project

This project encompasses the permits PEL 447,448 and 449 in western New South Wales. As the permits expire in April 2010, a renewal application was submitted in March.

Tibooburra Project

This project encompasses the permits PELA 87, 90, 91 and 94 in far north western New South Wales. The Company has also applied for permits PELA 117, 118, 119, 120, 121 and 122. No exploration was conducted this year. Work programs are currently under negotiation with expected grant of permits towards mid 2010.

Lightning Ridge Project

This project encompasses the permits PEL 465 and 466 in northern New South Wales. No exploration was conducted this year. It is currently planned to drill PEL 465 and 466 prior to expiry of the permits in October 2010.

Sandy Camp Project

This project encompasses the permits PEL 467, PELA 124 and 125 in northern New South Wales. Permit applications PELA 124 and 125 were granted. No exploration was conducted this year. It is planned to drill PEL 467 in first half of 2010.

Taroom Trough Project

This project encompasses the permits ATP 840 and 904 in southern Queensland. It was decided to drill the first core hole in ATP 840, which was contractually required to be drilled prior to 31st March 2010. The well location was selected, landowner consents obtained and a suitable drilling contractor and rig were contracted in December 2009. The well was drilled in ATP 840 in February 2010 which earned a 50% interest in ATP 840. Although the results from the well did not indicate CSG viability, there is considered to be tight gas potential in lower sequences and Red Sky has engaged a consultant to evaluate this.

Pedirka Basin Project

This project encompasses the permits EP 93, 107, 131 and PELA 77 in south east Northern Territory. During December 2009 CTP commenced the five CSG well work program. The first well, CBM 93004 intersected approximately 140 metres of coal between 540m and 950m depth. Core samples were taken for gas content and other testing.

Biogenic Methane Enhancement

The Company announced that, through a binding terms sheet, it had acquired rights to biogenic methane enhancement technology that could potentially assist in yielding methane quantities from coal in excess of that produced using conventional coal seam gas techniques. The technology has been shown to perform well on low rank coals of the type found within the Company's substantial exploration acreage in northern NSW and southern Queensland. Red Sky plans to demonstrate the technology in a single well demonstration project.

Mine For

oil, gas

Location of operation(s)

Western Australia, New South Wales, South Australia

Australian Basins

Darling, Surat, Eromanga

Address

Se 2, 16 Ord St
WEST PERTH, WA, AUSTRALIA

Phone

(61 8) 9486 112

Email

Website

http://www.redskyenergy.com.au

Last Updated

10/02/2011