Red Sky Energy to Target Flax Project to Deliver near Term Revenues

Australian Oil and Gas explorer and developer, Red Sky Energy (ASX) (Red Sky) is pleased to provide the results of its recently completed strategic review on its 100% owned Flax Oil and Gas Project located in Australia’s Cooper Basin.

HIGHLIGHTS
- Flax Project contains a 2C Contingent Resource of 9.9 million barrels of oil
- Six wells have historically produced over 180,000 barrels of oil grading 54 API
- AUD price for a barrel of oil grading 54 API currently around A$100 per barrel FOB well head
- Focus on restarting operations using existing six production wells given very low capex and streamlined timetable option as a result of existing wells and substantial in place infrastructure
- Enhanced Oil Recovery (EOR) options being considered for second phase development that if proven may substantially increase recoverable oil

Managing Director and CEO, Andrew Knox, commented:
“We believe we have the option of restarting oil production from the existing six oil wells at our 100% owned Flax Project. Given in place infrastructure this is likely to be very low capex and should provide for early cash flows particularly in light of current Australian dollar oil prices.

We also believe we have enhanced oil recovery options available that may increase our 2C contingent resource of 9.9 million barrels of oil to something substantially larger. And when you consider oil of the quality that has been historically produced from Flax is currently selling at around A$100 per barrel FOB Flax, that could result in very substantial revenues.”