Short Term Trading Week Starting: 28 Jan, page-36

STTCOMP ROG FA LONG

O&G
SP- .2c
Mktcap-$3.25mill
Cash-$300k est. ?? low

ROG key asset-Innamincka Dome

On 20 May 2019, the Company completed the full acquisition of four Cooper Basin oil and gas projects known collectively as The Innamincka Dome Projects. The Projects are summarised as follows:


1. Flax - Oil and gas project that contains a 2C contingent resource of 9.9m barrels of oil and 24 BCF of natural gas. There is in-place infrastructure and six production wells which have produced around 180k barrels of oil since 2008. In 2015 production was suspended due to low Australian dollar oil prices.

2. Yarrow - Gas project containing a 2C contingent resource of 20 BCF of natural gas. 3. Juniper - Large oil and gas target with modest existing 2C contingent resources and significant exploration potential.

4. PRLs 180/181/182 – Potentially large oil and gas areas requiring significant further evaluation.

https://nsenergybusiness.com/projects/innamincka-dome-projects/…

The recoverable gas from Yarrow is estimated to be valued roughly £112m (A$200m) at prevailing natural gas prices in the region.

(ROG free carry for 20% thats $40mill net to ROG !!! just for the Yarrow)

Financing The Company explored various options over the past couple of months with respect to financing the remediation bond and capex attaching to the Company’s Projects.

The joint venture partnership entered into with Santos was chosen for the following key benefits to Red Sky shareholders: • Relieves Red Sky of the Bond provision obligations with the SA Government of A$5.0 million

• Santos is a well-capitalised partner with significant Cooper Basin technical and operational experience • The Farm Out Agreement secures funding for targeted work programme commitments accelerating development in the project • Santos to provide development financing

• Timing to take advantage of historically high AUD oil and gas pricing Farm Out Agreement terms The Farm Out Agreement provides for Santos to earn an 80% interest (and operatorship) in Red Sky’s Cooper Basin licences collectively known as the Innamincka Dome. The terms provide for Santos to:

• Fund 100% of 50km2 of 3D seismic over the Yarrow gas field in PRL17, up to a maximum gross cost of A$1.0 million • Fund 100% of an appraisal well in the Yarrow gas field up to a maximum gross cost of A$3.0 million • Fund 100% of an appraisal well in the Flax oil and gas field in PRL14, up to a maximum gross cost of A$5.0million

• 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

Currently the Market doesn't value ROG at any sensible fair value ... but at the same time ROG mgmt. aren't helping the case with zero PR!!

Mgmt Quality ?
--Andrew Knox -formerly CFO of Cue Energy Resources Limited, a position he had held for 22 years
--Chairman-Gordan Ramsey-a former treasurer at the Petroleum Exploration Society of Australia (PESA). He has held senior management positions for companies such as Ralton Asset Management, Royal Energy, FAR Ltd, UBS Investment Bank, and Salomon Smith Barney (Citi Group).


BUY n HOLD but certainly has HUGE STT potential if STO starts work on the project