Red Sky Energy Drills Yarrow 5 as Three-Well Gas Program Eyes 2027 Production
Key Takeaways
- Red Sky Energy's Yarrow 5 development well spudded on 8 September 2026, with Santos targeting a total depth of 2,775 metres by 14 September 2026.
- Yarrow 4 reached total depth of 2,908 metres on 6 September 2026, and Santos moved directly to Yarrow 5 on the same dual-well pad without demobilising — keeping costs down and momentum up.
- The three-well program includes a re-entry of Yarrow North 1, a well cased and suspended since 2008, which will be perforated and fracture stimulated before being tied into Yarrow 1 via a ~950-metre flowline.
- First gas from Yarrow North 1 is targeted for early 2027, adding to an existing production base that already includes Yarrow 1 and Yarrow 3 producing into the Santos-operated Moomba gathering network.
- Red Sky holds a 20% working interest across six PRLs in the Innamincka Dome Joint Venture, with Santos's established infrastructure reducing both development costs and time-to-production for each new well.
Yarrow 5 drilling underway as three-well program accelerates
Red Sky Energy (ASX: ROG) has commenced drilling of the Yarrow 5 development well within PRL 17, with the well spudding on the evening of 8 September 2026. Santos (ASX: STO), the field operator, is targeting a planned total depth of 2,775 metres, with that milestone expected on Monday 14 September 2026, subject to operational conditions. Red Sky holds a 20% working interest in the well, which is the second of a now three-well Yarrow development program being drilled from the same dual-well pad as Yarrow 4.
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Three-well Yarrow development program: what’s happening and when
The three-well program was formalised when Red Sky executed a binding Authority for Expenditure (AFE) with Santos in April 2026. Since then, the program has moved quickly. Yarrow 4 reached a total depth of 2,908 metres on 6 September 2026, and Santos moved directly to Yarrow 5 on the same pad without demobilising.
The third component of the program is the Yarrow North 1 in-wellbore re-entry. This well was cased and suspended back in 2008 and will be re-entered, perforated, and single-stage fracture stimulated in the Tirrawarra Sandstone. It will then be tied into Yarrow 1 via an approximately 950-metre flowline, with first gas targeted for early 2027, subject to operational scheduling.
| Well | Role | Status | Key Metric | Timeline |
|---|---|---|---|---|
| Yarrow 4 | Development well | TD reached | 2,908m TD | 6 September 2026 |
| Yarrow 5 | Development well | Drilling | 2,775m planned TD | TD expected 14 September 2026 |
| Yarrow North 1 | Re-entry / stimulation | Upcoming | ~950m flowline tie-in | First gas targeted early 2027 |
Understanding development drilling in a producing gas field
A development well differs from an exploration well in one important respect: it targets a reservoir that has already been proven to contain hydrocarbons. That means meaningfully lower geological risk compared with drilling into untested ground. The trade-off is that development wells are typically smaller, incremental additions to an existing field rather than potential discovery-scale events.
The dual-well pad arrangement used for Yarrow 4 and Yarrow 5 is worth understanding. By drilling two wells from the same surface location, the operator shares infrastructure (wellhead facilities, access roads, the rig itself) across both wells. This reduces the per-well cost and eliminates a separate rig mobilisation, which keeps the program moving efficiently.
The Yarrow North 1 re-entry takes a different approach again. Rather than drilling a new hole from surface, the program accesses a well that was already drilled and cased in 2008 and simply re-activates it through perforation and fracture stimulation. This is typically a lower-capital-cost option than a new drill, and it brings an existing borehole back into service.
For investors, the significance is that lower-cost wells in a proven field compress the time and capital required to reach cash flow. Yarrow 1 and Yarrow 3 are already producing gas and liquids into the Santos-operated gathering system, so this program adds to an established production base rather than building from scratch.
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Production base and investment case
Innamincka Dome: established infrastructure advantage
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 in the Cooper Basin. The key infrastructure advantage here is that Santos already operates established gas-gathering, pipeline, and processing infrastructure connecting directly to the Moomba facility. That existing network reduces well development costs and the time between completing a well and achieving first production. Yarrow 1 and Yarrow 3 are both currently producing gas into that network, and the Yarrow development program represents the next phase of field activity following the tie-in and commissioning of Yarrow 1 in November 2025.
Red Sky Energy’s Killanoola drilling programme represents a parallel strand of the company’s broader growth activity, with that asset sitting outside the Cooper Basin Innamincka Dome joint venture that houses the Yarrow wells.
What investors should watch for next
Near-term milestones to monitor include:
- Yarrow 5 total depth confirmation (expected around 14 September 2026, subject to operational conditions)
- Yarrow North 1 re-entry commencement, following completion of Yarrow 5
- First gas from Yarrow North 1 (targeted for early 2027)
The company has noted that all timing estimates are subject to change depending on weather conditions, access windows, and operational scheduling. That caveat applies to each milestone above.
Andrew Knox, Managing Director
“Santos has moved straight from Yarrow 4 to Yarrow 5 on the same pad, which keeps development costs down and shortens the path to production…”
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