RED SKY ENERGY LIMITED 
By ABN 94 099 116 275
Level 17, 500 Collins Street Melbourne, VIC 3000 www.redskyenergy.com.au
Date 24 April 2014
Activities Report for the Quarter Ended 31 March 2014Summary
Red Sky's solar energy business, Soleir, made further progress on the Dubbo Solar One Project;
Product ruling for proposed funding structure was issued;
Interests in two Clarence Moreton Basin permits was sold.
Operational Overview
Solar Opportunity
Red Sky acquired solar energy company, Soleir Limited ("Soleir"), in November last year (see ASX announcement, 28 November 2012). Soleir is a developer of utility scale photovoltaic (PV) solar power projects, and its first project is in the major regional city of Dubbo in central NSW.
Funding Structure
The proposed funding structure provides for unitised ownership that will allow individuals to participate in the business and invest in the Dubbo Solar One Project. A product ruling in relation to the proposed funding structure was issued by the Australian Taxation Office on 12th March.
ERM Gas Transaction in relation to Clarence Moreton Project
On 8th January 2014 Red Sky announced it had sold its 20% interest in permits PEL 457 and 479, to ERM Gas for approximately $1.6 million in cash. This deal was approved by Red Sky shareholders on 6th March.
Taroom Trough Project
This project encompasses the permit ATP 840 in southern Queensland. Through a farm-in with Clark Oil and Gas (Operator), Red Sky's
18.75% interest has been relinquished.
Corporate
Red Sky appointed Mr Adrien Wing to the board as a Non-Executive Director. Mr Wing, is CPA qualified and has 20 years' experience in
the accounting and corporate sector.
During the quarter, the Company has been reviewing several gas opportunities whereby due diligence has commenced on one of these
Australian based projects. The Company will advise the market of any material developments as they come to hand. The Company has issued its Notice of Annual General Meeting. The 2014 AGM will be held on 8 May 2014.
Exploration interests as at 31 March 2014
Clarence Moreton Basin | Permit | Nature of Interest | Extent of Interest |
PELA 135 (formerly PSPA 37) | application | right to earn 100%. ERM Power holds an option to purchase from Red Sky. |
Changes during the Quarter
During the quarter, Red Sky sold its 20% interest in Permits PEL 457 and 479 in the Clarence Moreton Basin to ERM Gas. No other changes occurred during the quarter.
Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
Appendix 5BRule 5.5
Mining exploration entity and oil and gas exploration entity quarterly reportIntroduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013
Name of entity
Red Sky Energy Limited
ABN Quarter ended ("current quarter")
94 099 116 275 31 March 2014
Cash flows related to operating activities
1.1 Receipts from product sales and related debtors
1.2 Payments for (a) exploration & evaluation
(b) development
(c) production
(d) administration
1.3 Dividends received
1.4 Interest and other items of a similar nature
received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other - Solar project management
Net Operating Cash Flows
+ See chapter 19 for defined terms.
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1.13 Total operating and investing cash flows (brought forward) | 507 | 507 |
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - Cost of share issues Net financing cash flows | - - - - - - | - - - - - - |
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - Cost of share issues Net financing cash flows | - | - |
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter | 507 571 - | 507 571 - |
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter | 1,078 | 1,078 |
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 159
1.24 Aggregate amount of loans to the parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
Directors' fees of $158,576 were paid during the quarter. The amount paid included amounts owing from the
December 2013 quarter.
In addition to the above, payments of $31,339 were made during the quarter for solar project management services (item 1.7) provided by Energy Infrastructure and Resources Ltd, a director related entity.
Non-cash financing and investing activities2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
None
+ See chapter 19 for defined terms.
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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
During the quarter, Red Sky sold its 20% interest in Permits PEL 457 and 479 in the Clarence Moreton Basin to
ERM Gas. Proceeds of $1m were received during the quarter relating to:
- An upfront payment of $0.75m in lieu of $1m at the time of renewal of PEL 479; and
- $0.25m upon the sale of the 20% interest held in PEL 457.
Financing facilities availableAdd notes as necessary for an understanding of the position.
3.1 Loan facilities
3.2 Credit standby arrangements
(Equity Facility with YA Global)
Estimated cash outflows for next quarter4.1 Exploration and evaluation
4.2 Development
4.3 Production
4.4 Administration
Reconciliation of cashReconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.
+ See chapter 19 for defined terms.
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Changes in interests in mining tenements and petroleum tenements6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed
6.2 Interests in mining tenements and petroleum tenements acquired or increased
Issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rights together with prices and dates.
7.5 +Convertible debt securities (description)
+ See chapter 19 for defined terms.
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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
7.6 Changes during quarter
(a) Increases through issues (b) Decreases through securities matured, converted
7.12 Unsecured notes (totals only)
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: Date: 24 April 2014
Managing Director
Print name: Rohan Gillespie
+ See chapter 19 for defined terms.
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Mining exploration entity and oil and gas exploration entity quarterly report
Notes
1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
== == == == ==
+ See chapter 19 for defined terms.
Appendix 5B Page 6 01/05/2013
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