Oz Red Sky Updates on Yarrow Project
Australian Red Sky Energy June 26 announced the results of its recently completed strategic review on its 100% owned Yarrow gas project located in Cooper Basin.
The Yarrow project contains a 2C contingent resource of 20bn ft3 of natural gas, which is worth about A$200mn (US$140mn) at current east coast Australian prices, it said.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
“Our 100% owned Yarrow gas project has the potential to be a very low capex gas project and we expect to be able to debt-finance the pipeline,” said Red Sky CEO Andrew Knox.
The company is targeting a five-year operation designed to deplete the existing contingent resource which, based on current gas prices, would deliver around A$200mn in revenue, he added.
Red Sky said the project will require a 3D seismic survey to better define the field and enable computer modelling of reservoirs and production. Based on the models, locations and specifications for the vertical production wells and a pipeline can be finalised in the field development plan, it said.
Total project capital comprises the 3D seismic, development drilling and production infrastructure including the pipeline. The gas pipeline is estimated to cost A$12.3mn.
Last month the company completed the full acquisition of Cooper Basin oil and gas projects known collectively as the Innamincka Dome projects. The deal was announced in October last year.