Friday, February 3

Red Sky Energy sees upside potential as New South Wales decision on Talma CSG pilot draws near




With a decision by the New South Wales State Government on the Talma production pilot due soon, Red Sky is looking forward to further upgrade its gas reserves

Red Sky Energy (ASX:ROG) has confirmed the strong upside potential in its Clarence Moreton Basin coal seam gas noting its share of contingent resources in PEL 457 stands at 188.7 petajoules.

At least part of this resource could be converted to reserves status once the company receives approval to drill the Talma pilot production well, which targets the highly prospective Kangaroo Creek, and carry out a long-term production test.

This will also add to the company’s existing proved, probable and possible reserves of 114 petajoules, which currently ranks as the fifth largest amongst the non-major companies.

Red Sky ranks above Dart Energy’s (ASX: DTE) 102 petajoules and below Senex Energy's (ASX: SXY) 249 petajoules reserves position. 

Additional reserves will serve to further strengthen Red Sky’s position amongst Australia’s diminishing ranks of coal seam gas players.

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