WE GOT THE APPROVAL YIPPY GO ROG.....01 May 2012 09:43! ROG -...

WE GOT THE APPROVAL YIPPY GO ROG.....

01 May 2012 09:43! ROG - Major Milestone - Talma Pilot receives approval

MAJOR MILESTONE TALMA PILOT WELL RECEIVES APPROVAL
Key Points:
· Approval has been granted to drill the Talma pilot well at the Company’s highly prospective Kangaroo Creek Sandstone gas resource in Clarence Moreton Basin, north east NSW;

· Company announced a significant new discovery in the Kangaroo Creek Sandstone in 2011;

· Approval is a major milestone for the Company - plan is to drill a pilot well in this gassy
formation;

· Next step is to contract a drilling rig and commence drilling the Talma pilot well.

The directors of Red Sky Energy Limited (“Red Sky” or “the Company”) are pleased to announce that it has received regulatory approval to drill the proposed Talma pilot well at the Company’s highly prospective Kangaroo Creek Sandstone gas resource in the Clarence Moreton Basin in north east New South Wales.

Red Sky’s application for regulatory approval for the Talma pilot well, in the form of a comprehensive Review of Environmental Factors (REF) document, was submitted in November 2011 (ASX announcement, 3 November, 2011). The REF included extensive stakeholder consultation and a rigorous
assessment of impacts. It concluded that any impacts could be adequately managed.

The Company now advises that the REF has been approved, and it will now proceed to contract a drilling rig and commence drilling of the Talma pilot well.

Red Sky announced a significant new discovery (within PEL 457) in the Kangaroo Creek Sandstone in 2011. Its intention is to drill the Talma pilot production well within the discovery area and perform a long term production test to determine the magnitude of the resource.

The Company conducted a Resource Study on its Kangaroo Creek sandstone gas discovery resource in August (ASX announcement, 11 August 2011) which concluded that the discovery is a highly prospective lead. Red Sky plans to drill out the pilot well to expose the Kangaroo Creek formation over a 90 metre interval, from 480 metres to 570 metres depth