The Killanoola Oil Project is Red Sky’s 100% owned Flagship located in South Australia’s onshore Otway Basin. It was acquired in February 2021 from Beach Energy. PRL-13 covers an area of 17.5 sq km and is located in southeastern South Australia close to the Jacaranda Ridge and Haselgrove Gas Fields and Katnook Gas Processing Facility in the Penola Trough of the onshore Otway Basin.
The Killanoola oilfield was discovered by the Killanoola-1 well in 1998 at a depth of 850 metres. The oil is a 34° API waxy crude. Previous flow tests of the well have recorded rates of up to 300 barrels of oil per day.
An independent petrophysical report commissioned by Red Sky on the Killanoola-1DW-1 well identified potentially 37 metres of additional oil bearing pay zones within the 149-metre-thick Sawpit Sandstone. This evaluation adds significantly to the currently perforated pay zone of 5 metres. Future geological and geophysical studies will integrate these findings into new reservoir and structure models.
These results follow the exceptional result of 16m of Net Pay for the Killanoola SE-1 well which was in stark contrast to the previous net pay estimates of 1.5m. Killanoola SE-1 was drilled in 2011 and also discovered oil. This well has not undergone a production test.