Red Sky Energy announced that the activity by Santos Limited at Yarrow 3 Well has been completed with an agreement reached to proceed with the construction of a pipeline of approximately 18km to tie into the grid to the south of the Yarrow gas field. This construction activity will bring Yarrow 3 flowline on earlier (second half calendar year 2023) with ability to leverage the current gas market prices and allow Red Sky to receive production revenue from first gas in third quarter 2023 subject to reviews and a metering agreement between the parties. Preliminary analysis of pressure data indicates connected volume >1.7 BCF (EUR 1.3 BCF) with some residual water production.

Peak rate of approximately 5MMscfd through a 36/64'' choke with tubing head pressure of 780psi. Memory Production Logging Tool (MPLT) was completed and this confirmed the flow was in line with initial data from the fracc with 85% from the Patchawarra formation and 15% from the Tirrawarra sandstone. Post receipt of this analysis, Santos' Cooper Basin based team recommended proceeding with the 18km pipeline connection in parallel with a proposal to re-enter Yarrow 1 and test the well with the view to also moving it to production and eventually tie in to the same pipeline.