drilling update, page-21

ABN 94 099 116 275 Telephone +61 8 9486 1122
P O Box 1779, West Perth WA 6872 Facsimile +61 8 9486 1011
Suite 2, 16 Ord Street, West Perth, WA 6005
www.redskyenergy.com.au
Date 23rd February 2010
Red Sky Energy Ltd
ASX Code: ROG
ASX Announcement
RED SKY COMPLETES DRILLING OF FIRST WELL
Key Points:
? Red Sky Energy has cased and suspended its first coal seam gas well within ATP 840;
? Results indicate the Cretaceous sequence thickens over the Taroom Trough as expected;
? One gassy coal seam found, however extent of coal seam formation is less than expected;
? Completion of Romona #1 well completes farm‐in obligations, within ROG now holding a 50% interest in
ATP 840
Red Sky Energy Limited (ASX: ROG) (?Red Sky? or ?the Company?), has completed its first coal seam gas well,
Romona #1, within ATP 840. It was drilled to a total depth of 640 metres and intersected the Cretaceous Rolling
Downs Group and Bungil Formation. Within this sequence was found a gassy coal seam slightly less than one metre
in thickness at a depth of 420m. Overall coal seam thickness was 1.6 metres from 8 seams, which is less than
expected and not considered sufficient for commerciality.
Red Sky will now pause to analyse these results and assess whether this is a localised effect or more regional, and
as such will also defer drilling of Talwood #1 until this analysis is completed.
In addition, Red Sky has engaged a consultant to develop the tight gas play within ATP 840. This will focus on the
Permian‐Triassic sands (similar to nearby Overton field) and shales within the deeper Permian sequence.
The drilling rig, TDC Mindrill 1500 #7, will now return to Roma for modifications, before moving to the next Red Sky
well. This is planned to be within Red Sky? permit PEL 467 near Walgett in northern New South Wales. Previous
studies have shown PEL 467 has a number of water bores intersecting coal and water bores flowing gas. Expected
spud date is late March.
As previously advised, completion of the Romona #1 well meets Red Sky?s initial farm‐in obligations to Clark Oil and
Gas and earns the Company a 50% interest in ATP 840.