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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.

Recent Developments

Red Sky completed the acquisition of the 3D seismic survey at Killanoola in early March 2022 on schedule and with minimal downtime. An additional associated activity license was granted surrounding the PRL13 licence, AAL295, to allow the seismic acquisition to exceed the licence limits by approximately 5km2 to better facilitate and improve the imaging. The seismic survey will assist in unlocking additional resources and the planning for the comprehensive Killanoola full field development.

Planning has commenced to contract a rig and for the wireline perforation of the additional zones of interest identified at both DW1 and SE1. This is to be followed by production testing and potentially long-term production. The Company is also exploring early production from the existing 5 metres of pay at DW1.


  • Red Sky acquired Killanoola Oil field (PRL-13) from Beach Energy
  • Killanoola passed through at least four operators since discovery, severely disrupting development
  • STOIIP ranges up to 7 million barrels
  • Recoverable oil ranges up to 40% or 2.8 million barrels
  • Red Sky is investigating wax mitigation techniques to ensure stable oil flow
  • Significant progress made with petrophysical analysis identifying additional potential pay at both the DW1 and SE1 well sites
  • A slickline was run at SE1 and production test conducted at DW1, and assays were taken
  • Completed a 3D seismic acquisition over the entire license to assist in full field development
  • Funds have been raised to support the work programme

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
Killanoola-1 Block
Killanoola South Block
Killanoola Southeast Block

Near Top Reservoir Depth Map