Red Sky Energy completes fund raising for Killanoola oil project

Red Sky Energy, Melbourne, completed a placement and share purchase plan to raise a total of $5.1 million (Aus.) to be applied to the further development and fast-tracking of the Killanoola oil project in the Otway basin of southeast South Australia.

The program includes additional seismic acquisition and drilling in the wider project area around the Killanoola oilfield that was originally found with the Killanoola-1 wildcat in 1998.

Red Sky has identified a potential 37 m of additional oil-bearing pay zones within the 149 m-thick Sawpit Sandstone, an evaluation that adds to the currently perforated pay zone of 5 m.

Results followed the discovery of 16 m of net pay in the recent Killanoola SE-1 well.

Red Sky is preparing to perforate and test these newly identified potential pay zones which could add markedly to the fields oil reserves.