Most of the assets of Acer Energy were later sold by BPT to Red Sky for $1!
8 March 2019
APPLICATION FOR MINISTERIAL CONSENT TO ACQUIRE INNAMINCKA DOME PROJECT CAPITAL RAISING
Highlights
• Red Sky proceeds to application stage for Innamincka Dome licenses
• Beach to support Red Sky’s application to the Minister
• Red Sky initiates capital raising pursuant to ASX Placement Capacity
Red Sky Energy Limited (Red Sky or the Company, ASX: ROG) is pleased to advise that, through its wholly owned subsidiary Red Sky (NT) Pty Ltd, it has made application for Ministerial consent to transfer the Innamincka Dome licenses from Beach Energy Ltd (Beach, ASX: BPT) to Red Sky.
This application follows agreement to amend the Sale and Purchase Agreement (SPA) with Acer Energy Pty Ltd, a Beach subsidiary, to acquire that subsidiary’s interests in the Innamincka Dome Project in the Cooper Basin, South Australia. The principal term of which is that Beach will continue to provide financial security for the licenses. Red Sky will provide an escrowed financial assurance of $800,000 and should Beach not be released from the financial security within six months then the licenses will revert back to Beach and the escrowed funds are forfeit. This amendment now means all conditions have been satisfied
under the SPA once Ministerial consent has been granted.
Red Sky are now proceeding with the application for Ministerial consent.
The Innamincka Dome Project comprises a portfolio of six highly prospective petroleum tenements (PRLs) near the township of Innamincka in northeast South Australia. Beach’s interest in this portfolio comprises a 100% owned and operated stake in:
• PRL14 (Flax oil field which was previously producing);
• PRL17 (Yarrow gas field);
• PRL18 (Juniper oil field);
• PRL180;
• PRL181; and
• a 75% interest in PRL182 (remaining 25% being purchased from Bengal Energy (Australia) Pty Ltd).
The purchase of Beach’s interest in the Innamincka Dome Project is inclusive of all existing production infrastructure, storage tanks, yards and camp facilities. This infrastructure is modern and in excellent operating condition. The project was suspended in 2015 due to the downturn in oil and gas markets. The Company will initiate “re-start” planning for the Innamincka Dome Project immediately with a focus on resuming oil and gas production at Flax as soon as possible.
ELK Price at posting:
1.4¢ Sentiment: None Disclosure: Not Held
