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 bopd.

A 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. Red Sky is now working to revise the work programme to include testing of the newly identified pay zones. (See ASX Announcement 6 May 2021)

These results followed the recent result of 16m of Net Pay for the Killanoola SE-1 well (See ASX Announcement 22 March 2021).

Red Sky is preparing to perforate and test these newly identified pay potential zones in the wells. Planning is underway in line with our forward programme. This testing, if successful, will allow Red Sky to book reserves associated with Killanoola-1DW-1 and Killanoola SE -1.

Highlights

  • Red Sky Energy Limited has acquired the Killanoola Oil field (PRL-13) from Beach Energy
  • Funds have been raised to support the work programme
  • STOIIP ranges up to 7 million barrels
  • Recoverable oil ranges up to 40% or 2.8 million barrels
  • Significant Upside with potential new pay zones identified
  • Killanoola has passed through at least four operators since discovery which has severely disrupted development
  • Red Sky Energy Limited is investigating wax mitigation techniques, to ensure stable oil flow

Field History

  • Field was discovered in 1998 by the Killanoola-1 well
  • Discovery well was deviated to an up-dip position by the Killanoola-1 DW-1 well and a drill stem test produced about 120 bopd
  • A second well Killanoola SE-1 was drilled in 2011 but no production test was carried out. Extensive production testing is planned
  • Killanoola has estimated in-place oil of 7 million bbls with potential new pay zones which may substantially increase this
  • Best Estimate oil recovery is currently 2.8 million bbls, which is a 40% recovery factor. A downhole heating technique to mitigate the wax issue is assumed
  • Exceeds earlier estimates of 14% (0.8 million bbls EPR:ASX 2008)
  • 5m of net pay was perforated in the side track, Killanoola-1 DW-1, and it was cased and suspended as an oil well on 2 May 1998
  • The licence also includes an additional untested fault closure, called Killanoola South. This fault block is considered a success in the high case
  • Reserves Summary from Previous Operators:
    • Beach Energy estimated reserves at: P90=500,000 bbls / P50=2,900,000 bbls / P10=6,700,000 bbls
    • Essential Petroleum (EPR) stated: 7 million bbls in place / 800,000 bbls recoverable (only 14%)

PRL 13 Potential

Killanoola-1 Block (1 in map)
  • Killanoola-1 can be brought back into production quickly
  • Red Sky plans to engage a proven enhancement technology to increase production
  • Significant upside in potential new pay zones
  • Better flow rates from the well will increase the final recoverable volumes
Killanoola South Block (2 in map)
  • The Killanoola South block is untested and has the same geological setting as Killanoola-1 and SE-1. Red Sky aims to drill this prospect
Killanoola Southeast Block (3 in map)
  • The Killanoola SE-1 well discovered oil in 2011 and is suspended awaiting commercial testing
  • Significant upside in potential new pay zones
  • Red Sky plans to test together with Killanoola-1
1
Killanoola-1 Block
2
Killanoola South Block
3
Killanoola Southeast Block

Near Top Reservoir Depth Map