Red Sky Energy's two-well Yarrow program starts after rain delays, with Willowie 2 to follow

Red Sky Energy (ASX:ROG) is about to drill two wells at its Yarrow gas field in South Australia's Cooper Basin, with a third well at Willowie to follow. Santos operates all of them and Red Sky holds a 20% working interest.

What is happening

Yarrow 4 was scheduled to spud on Monday 31 August 2026, and Red Sky later announced that drilling had commenced. Yarrow 5 is to be drilled immediately afterwards from the same dual-well pad. No start date or duration for Yarrow 5 is given, and it remains subject to operational scheduling, weather and access.

Willowie 2 is an appraisal well in PRL 18. Civil works are estimated to start in early September, with a spud estimated for late October 2026. If it succeeds, it is expected to connect to existing Santos infrastructure.

What has slipped

Rig 184 reached Yarrow later than planned because rain affected site access. Willowie 2 has also moved. Civil works were previously expected in the second half of August, and the spud in mid-October. Red Sky says Santos supplied these dates, that they are estimates only, and that rainfall across the Cooper Basin has been persistent through 2026.

Why it matters to Red Sky

Yarrow is already producing. Yarrow 1 was tied in and commissioned in November 2025, and Yarrow 1 and Yarrow 3 are producing gas and liquids into the Santos gathering system. Two more wells would add to a field that is already connected. Red Sky says that infrastructure reduces development cost and time to first production. Both programs follow binding spending approvals (AFEs) signed with Santos in April 2026.

The source announcement gives no resource estimates for Yarrow or Willowie, so the size of any benefit cannot be judged from it.

The wider asset list

The resource figures in Red Sky's disclosures relate to other assets:

• Flax: 20 bcf gas contingent (P50, January 2024), 100% interest
• Cache Oilfield: 5.1 mmbbl oil prospective (P50, 2016), 50% interest
• Gold Nugget: 2 bcf gas prospective (P50, 2015), 70% interest
• IBIS, D2, B2 and Cegonha: oil estimates stated in April 2025, with Red Sky's interest not disclosed

Several of these estimates are years old, and prospective volumes are unproven. Whether the Innamincka wells change the picture depends on results not yet reported.