ASX ANNOUNCEMENT
18 January 2022
Santos Farm Out Terms
Santos to earn an 80% interest and operatorship (ROG: 20%) in Red Sky’s onshore Cooper Basin retention
licences PRL 14, 17, 18, 180, 181 and 182, collectively known as the Innamincka Dome Projects. The terms
provide for Santos to:
• Fund 100% of 50km2 of 3D seismic over the existing Yarrow gas field in PRL 17, up to a maximum cost of
A$1.0 million.
• Fund 100% of an appraisal well in the Yarrow gas field in PRL 17 up to a maximum gross cost of A$3.0
million.
• Fund 100% of a horizontal appraisal well in the Flax oil and gas field in PRL 14, up to a maximum gross
cost of A$5 million.
• Subject to satisfactory appraisal outcomes, initially fund 100% of any approved development of the
fields, with Santos to be repaid for Red Sky’s share of such development expenditure out of Red Sky’s
share of production.
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