Red Sky Energy's Yarrow 4 well is drilling, with Yarrow 5 to follow and Willowie 2 later

Red Sky Energy (ASX:ROG) has begun drilling Yarrow 4, the first of two planned wells at the Yarrow gas field in South Australia's Cooper Basin, with Yarrow 5 due to follow immediately from the same pad.

Yarrow 4 spudded on 31 August 2026, and about 10 days of drilling are expected. Yarrow 5 is scheduled to be drilled straight after, though the company has not given a start date. Results from both wells are still to come. Santos operates the wells and Red Sky holds a 20% working interest.

Why it matters

Yarrow is Red Sky's producing base. Yarrow 1 and Yarrow 3 are already producing gas and liquids into the Santos-operated gathering system, and Yarrow 1 was connected in November 2025. In the June 2026 quarter, Yarrow receipts were $1.045m, 82% of it from gas. If the new wells succeed, they would add to that production, though the company has not stated expected volumes.

Willowie 2 is next

Civil works for the Willowie 2 appraisal well, in PRL 18, are estimated to start in early September. Spud is now estimated for late October 2026. The well targets the Patchawarra and Tirrawarra formations, and if successful it is expected to connect to existing Santos infrastructure.

What has slipped

The schedule has moved repeatedly:

• Drilling at Yarrow was first guided for July 2026, then August, then 31 August after rain delayed earthworks and rig mobilisation.
• Willowie 2 civil works moved from the second half of August to early September.
• Willowie 2 spud moved from mid-October to late October.

Red Sky says all dates come from Santos, are estimates, and depend on weather and site access. Managing Director Andrew Knox said wet weather had "tested the drilling schedule."

The wider portfolio

The company's other listed estimates are mostly older or prospective rather than proven. They include Flax (gas, 20 bcf contingent, 100% interest, stated in 2023) and a group of 35%-owned oil targets stated in April 2025, including Cegonha (14.6 mmbbl contingent), D2 (14.7 mmbbl prospective) and IBIS (15.5 mmbbl prospective). Prospective figures describe undrilled potential, not discovered volumes.

Funding and register

Red Sky completed a roughly $4.2m raising at 0.1c in May and reported cash of $6.17m at the end of June. A share sale facility for small holdings finished on 1 September, cutting holders from 5,453 to 1,819. Share capital is unchanged at 10,570m.