Red Sky completes drilling of Killanoola-2 appraisal well in Otway Basin

Red Sky Energy has completed drilling operations at the Killanoola-2 (KN2) oil appraisal well in Permit PRL-13 in South Australia’s onshore Otway Basin. Drilling reached a total depth of 1,044 m without incident. The well was cased and suspended with production pipe in place as a potential future producer.

Wireline logging included full gamma ray, sonic, resistivity, density and neutron tools. Petrophysical interpretation confirmed the presence of hydrocarbons in the Upper Sawpit Sandstone, but with low permeability and limited production potential in the current unstimulated state.

The company reported that KN2 shows similar reservoir characteristics to previous wells in the area, including low matrix permeability, high water saturation and significant shale interbedding. These factors reduce reservoir connectivity. As a result, Red Sky elected not to proceed with drill stem testing.

A wiper trip was conducted before casing and suspending the well. Red Sky plans to complete both KN2 and the nearby DW1 well using a workover rig and will evaluate potential stimulation options subject to regulatory approval.