Red Sky, ERM Power to Develop Clarence Moreton Gas Project
Red Sky Energy Limited and ERM Gas Pty Ltd, a wholly owned subsidiary of ERM Power Ltd have inked an agreement to develop Red Sky’s highly prospective on-shore gas projects in the Clarence Moreton Basin in north east New South Wales.
Under the agreement, ERM Gas will make payments to Red Sky of up to $2.7 million, upon achievement of certain milestones, and will fund the drilling of up to nine wells (minimum of six) at Red Sky’s Clarence Moreton Basin project area, in permits PEL 478, 479 and 457.
Red Sky will issue 150 million ROG shares to an ERM entity, giving ERM an approximate 9.5% holding in Red Sky.
Red Sky has established a strong 3P gas reserves position, of 114 PJ, at its project area in the Walloon coals in the Clarence Moreton Basin. It recently received regulatory approval to drill the Talma pilot well at its Kangaroo Creek Sandstone gas discovery (PEL 457) within the project area.