Ann: Red Sky to Acquire Innamincka Dome Project from Beach Energy, page-4

While I see the finance costs as being on the high side at $3m EV post raise the overall deal looks very good. The assets being acquired have a rapid pathway to modest production and in today’s oil environment a high probability of significant developments.

Have taken a starter position and will add as I see a competent team build to take this to production.

The link below paints a pretty good picture of what’s potentially on offer.

https://www.asx.com.au/asxpdf/20120621/pdf/426ymqf0fcn9vz.pdf

Gas prices have doubled since the field was put on care and maintenance

Oil prices in AUD terms are back to pre crash levels


The field development costs have halved


If there’s a time when this project makes sense it’s now