Red Sky Energy waiting on regulatory approval to drill Talma pilot production well

Red Sky Energy (ASX: ROG) has been asked to supply additional information to the New South Wales Department of Trade and Investment, Resources and Energy for its application for regulatory approval for the Talma pilot well.

Red Sky submitted a Review of Environmental Factors document in November which included extensive stakeholder consultation and a rigorous assessment of impacts. It concluded that any impacts could be adequately managed.

A revised application has been submitted and Red Sky has been advised that a determination will be made within one month.

The company plans to drill the Talma pilot production well within the new Kangaroo Creek Sandstone discovery area and perform a long term production test to determine the magnitude of the resource.

Red Sky conducted a Resource Study on its Kangaroo Creek sandstone gas discovery resource in the Clarence Moreton Basin in August which concluded that the discovery is a highly prospective lead.

Red Sky plans to drill out the existing cemented core hole and expose the Kangaroo Creek formation over a 90 metre interval, from 480 metres to 570 metres depth.

Upon completion of drilling, a wellhead and flare will be installed and the well put on production. Site works are expected to take no more than 15 days.

Once Red Sky has secured regulatory approval, the company will source a suitable drilling rig to undertake the pilot.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24035/red-sky-energy-waiting-on-regulatory-approval-to-drill-talma-pilot-production-well--24035.html