Red Sky Energy to provide notification on the current progress with the Yarrow well at the Innamincka Projects (Innamincka). Innamincka Projects: Santos Limited has advised it mobilised a rig and commenced drilling at Yarrow on Thursday 15 September 2022. The planned well total depth is approximately 2,700m and is expected to take two weeks to drill.

Red Sky is free carried through the drilling of this well up to a cap of $3 million. Yarrow has been estimated to have a 2C contingent resource of 18BCF. A further 20BCF 2C of associated gas is estimated at the Flax oil field 8km to the south east of Yarrow.

Yarrow 3 is an appraisal gas well targeting the Tirrawarra sandstone as primary objective and the Patchawarra formation as secondary objective. Tested at Yarrow 1, the Tirrawarra sandstone was shown to flow gas to surface. The aim of the Yarrow 3 appraisal well is to test the extent of the gas accumulation.

A pipeline of approximately 18km would potentially be built to tie into the grid at Napowie to the south of the Yarrow gas field.