Highlights
- Drilling safely reached total depth (TD) of 1,044m MD without incident
- Wireline logs completed using full GR, Sonic, Resistivity, Density and Neutron tools
- Petrophysical analysis confirms hydrocarbons in Upper Sawpit Sandstone
- Low permeability observed
- Well cased and suspended for future production
- Stimulation options under review
- Workover rig planning to test KN2 and DW1 performance
Red Sky Energy has advised that drilling operations at the Killanoola-2 (KN2) oil appraisal well, located in PRL-13 in South Australia’s onshore Otway Basin, have been safely completed and the well has been cased and suspended with production pipe run as a potential future producer.
Following the overnight acquisition of neutron-density logs, Red Sky’s petrophysicist completed a detailed petrophysical interpretation. The analysis confirms the presence of hydrocarbon-bearing zones in the Upper Sawpit Sandstone, albeit with limited production potential in its current unstimulated state.
The evaluation concluded that KN2 exhibits very similar characteristics to prior wells (K1, K1DW and K1SW1), with low matrix permeability, high water saturations and a high degree of shale interbedding. These factors reduce connectivity within the reservoir.
As such, and in line with the recommendation, the Company has elected not to proceed with the contingent Drill Stem Tests (DSTs). A wiper trip was conducted, and the well has now been cased and suspended as a potential future producer.
Red Sky Energy Managing Director, Andrew Knox, commented:
'We have advanced KN2 safely and efficiently, and now have two suspended wells that correlate closely to the 3D seismic model. Our next priority is testing the production potential through a fit-for-purpose completion and possible stimulation plan. We remain optimistic about unlocking value at Killanoola through targeted, regulatory-compliant artificial lift and stimulation.'
Forward Plan
Red Sky intends to:
- • Complete both KN2 and the nearby DW1 well using a workover rig, and
- Evaluate the potential for stimulation, subject to regulatory approval.
About Killanoola and KN2
The Killanoola Oil Project is located within PRL 13 in South Australia’s Penola Trough (refer to map). 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. (Refer Table 1and ASX Announcement 21 April 2023.) 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.
Source: Red Sky
