Red Sky Energy advises that the South Australian Department for Energy and Mining (DEM) has granted approval for the drilling of the Killanoola-2 (KN2) well within Petroleum Retention Licence 13 (PRL-13). 

Following receipt of the approval on 22 October, Condor Energy has commenced mobilisation of  remaining third party services to the site. Drilling of the surface casing hole is expected to commence in the coming days, marking the start of the KN2 drilling campaign. 

Managing Director, Andrew Knox, commented: 
“Receiving DEM approval to commence drilling is a major milestone for Red Sky and the Killanoola project. Condor’s team is now mobilising the remaining necessary services, and we expect to spud KN2 within days.” 

Killanoola and KN2

The Killanoola Oil Project is located within PRL 13 in South Australia’s Penola Trough. Red Sky’s 3D seismic programme, completed in 2023, resulted in a 46% uplift in the field’s Best Estimate Petroleum Initially In Place (PIIP), increasing to 135.5 million barrels. KN2 targets a previously undrilled structural high identified from this new data. 

Killanoola has a conditional offtake agreement with Viva Energy Australia and is in discussions with Santos (operator of the SACB JV) regarding alternative offtake and processing at the Port Bonython facility. 

Once its production infrastructure is in place, KN2 has the potential to increase output and drive material revenue growth significantly in the near term. 

KeyFacts Energy: Red Sky Energy Australia country profile