Red Sky Energy Spuds Yarrow 4 in Santos JV as Cooper Basin Production Expands
Key Takeaways
- Rig 184 spudded Yarrow 4 on 31 August 2026 within PRL 17, kicking off a two-well development program expected to take approximately 10 days per well.
- Yarrow 5 will be drilled immediately after from the same dual-well pad, compressing the timeline and reducing mobilisation costs across the program.
- Both new wells tie into Santos's existing Moomba-connected infrastructure, eliminating the need for standalone gathering or processing facilities and accelerating time to first production.
- Red Sky holds a 20% working interest across six PRLs in the Innamincka Dome JV, with Yarrow 1 and Yarrow 3 already producing gas and liquids into the Santos-operated gathering system.
- Wet weather delays across the Cooper Basin during the first half of 2026 pushed the program back, making the spud date a material operational milestone for the company.
Red Sky Energy has commenced drilling at Yarrow 4, the first well in a two-well development program within the Santos-operated Innamincka Dome Joint Venture. Rig 184 spudded the well early Monday 31 August 2026 within PRL 17, with drilling expected to take approximately 10 days subject to operational conditions. Red Sky holds a 20% working interest, with Santos (ASX:STO) as operator. Yarrow 5 will follow immediately from the same dual-well pad.
The Yarrow development program explained
This is development drilling within an already-producing field, which means geological risk sits lower than exploration activity. The program follows Red Sky’s execution of a binding Authority for Expenditure (AFE) with Santos in April 2026, advancing activity within the Yarrow field after the tie-in and commissioning of Yarrow 1 in November 2025. Yarrow 1 and Yarrow 3 are currently producing gas and liquids into the Santos-operated gathering system, establishing a production base that the new wells will extend.
The two-well sequence runs as follows:
- Yarrow 4 spudded 31 August 2026 (~10 days drilling)
- Yarrow 5 to follow immediately from the same dual-well pad
- Both wells tie into existing Santos infrastructure, reducing development costs and time to first production
The program targets near-term production growth within a proven producing field rather than testing untested geology. That shifts the risk profile materially compared to exploration drilling.
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Why the Innamincka Dome matters for investors
The Innamincka Dome is a proven producing region of the Cooper Basin where established infrastructure drives economics. Red Sky holds a 20% working interest across six PRLs (14, 17, 18, 180, 181 and 182) within the Santos-operated Innamincka Dome Joint Venture. Santos operates established gas-gathering, pipeline, and processing infrastructure that connects directly to the Moomba facility.
What that means for you: existing infrastructure reduces per-well development costs and compresses time between drilling completion and first gas. New wells do not require standalone gathering systems, pipelines, or processing facilities — they tie into an operational network. This lowers the capital hurdle and accelerates payback periods relative to greenfield developments.
The table below summarises Red Sky’s position within the Innamincka Dome:
| Item | Detail |
|---|---|
| Working interest | 20% |
| PRLs held | 14, 17, 18, 180, 181, 182 |
| Operator | Santos (ASX:STO) |
| Producing wells | Yarrow 1, Yarrow 3 |
| Infrastructure link | Moomba facility |
Red Sky participates in development activity within a producing asset base, operated by a major with established infrastructure. That combination de-risks execution relative to early-stage exploration or remote field developments.
Management commentary
The milestone follows wet weather delays that affected drilling schedules across the Cooper Basin during the first half of 2026.
Andrew Knox, Managing Director
“Spudding Yarrow 4 is a key milestone after the wet weather delays across the Cooper Basin. With Yarrow 5 to follow from the same pad, we look forward to Santos progressing the program and will keep the market informed of any significant events.”
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What comes next
Immediate next steps centre on drilling execution and operational updates:
- Yarrow 4 drilling expected to take approximately 10 days from 31 August 2026 spud date
- Yarrow 5 scheduled to be drilled immediately after from the same dual-well pad
- Red Sky to update the market on significant events and operational milestones as they are reached
All dates are Santos estimates only, subject to change depending on weather conditions, access windows, and operational scheduling. The company has not disclosed flow rates, reserve figures, or first-production dates for either well. What you are tracking here is drilling execution within a producing field — results and commercial assessment follow post-completion.
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