PERTH (miningweekly.com) – ASX-listed Red Sky Energy has completed the acquisition of the Killanoola petroleum retention licence, in South Australia, from fellow-listed Beach Energy.
The two companies in November last year struck an agreement under which Red Sky would acquire the retention licence for A$1, and would take responsibility for discharging all obligations for the purchased asset, including all liabilities relating to the decommissioning, abandonment, rehabilitation, remediation or restoration of those assets.
Red Sky on Thursday said that the company had applied to the South Australian Minister for Energy and Mining for the approval and registration of the sale and purchase agreement, and upon the approval, the licence will be transferred to the company.
Red Sky has started planning for the Killanoola project with a focus on starting oil production as soon as possible, and is investigating different enhanced oil recovery techniques to maintain long-term production at the highest possible rate.
The retention licence contains the Killanoola oilfield and covers some 17.5 km2 close to the Jacaranda Ridge and Haselgrove gasfields and the Katnoon gas processing facility.