Red Sky Energy’s Yarrow 1 Well Surpasses Production Targets Ahead of Schedule

Yarrow 1 Well Comes Online Early

Red Sky Energy has announced that its Yarrow 1 well, part of the Innamincka Dome Project in South Australia’s Cooper Basin, is now producing gas ahead of schedule. Operated by Santos Limited, which holds an 80% interest, the well was tied in and commissioned earlier than initially expected, with production commencing on 15 November 2025.

This milestone marks a significant step forward for Red Sky, which holds a 20% working interest in the project. The early start and strong initial production rates underscore the effectiveness of the recent fracture stimulation and completion program targeting the Patchawarra and Tirrawarra formations.

Production Exceeds Expectations

Initial flowback following the two-stage hydraulic fracture stimulation delivered approximately 1.8 million standard cubic feet per day (MMscf/d) of gas, confirming the commercial quality of the reservoir. Since coming online, Yarrow 1 has been producing at around 2.4 MMscf/d, surpassing the AFE P50 forecast of 1.6 MMscf/d. While these early rates are under controlled ramp-up conditions and not necessarily indicative of long-term output, they provide a promising signal for the well’s potential.

Red Sky’s Managing Director, Andrew Knox, highlighted that this performance strengthens the company’s production base and near-term cash flow outlook. The well’s contribution is expected to more than double Innamincka’s combined production once stabilised, subject to field conditions and operational factors.

Strategic Low-Cost Development Approach

The Yarrow 1 well exemplifies Red Sky’s strategy of unlocking discovered resources through low-cost re-entries and completions tied into existing infrastructure operated by Santos. Originally drilled and cased by Santos, Yarrow 1 was re-entered and hydraulically fractured earlier this year to enhance permeability in tight sandstone reservoirs. Post-stimulation workovers optimized the well configuration for sustained production, and surface facilities were completed despite regional flooding delays.

This approach allows Red Sky to advance production and cash flow with relatively short development cycles and capital efficiency, positioning the company well ahead of planned 2026 drilling activities. The joint venture will continue to monitor early production trends and incorporate data into broader field development planning.

Looking Ahead

With Yarrow 1 now online, Red Sky is focused on optimising flow rates and surface settings to sustain deliverability. The company also plans to evaluate additional development and exploration targets informed by recently acquired 3D seismic data. These efforts aim to build on the momentum from Yarrow 1 and Yarrow 3 wells, further enhancing the Innamincka Dome Project’s value.

Investors and analysts will be watching closely for updates on production stabilisation and any guidance on the 2026 drilling program, which could unlock further upside in this prolific Cooper Basin region.