Finance & Investing
News Services
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy


Red Sky Exits ATP 946 Farm-In, Parts Ways with Resolve Geo

change text size

The directors of Red Sky Energy advise the farm-in to ATP 946 in the Eromanga Basin, in Queensland, with Resolve Geo has been mutually terminated.

As part of the agreement to terminate the farm-in, Red Sky is no longer required to drill two core holes at the permit, which would have cost approximately $2 million.

The settlement involves Red Sky issuing shares to Resolve Geo plus a small cash payment.

Commenting on the termination of the farm-in agreement, Red Sky Managing Director Rohan Gillespie said: "Since we entered into the farm-in March 2010, a number of adverse factors have impacted the onshore gas exploration industry in Eastern Australia. Regulatory costs have increased significantly, as has uncertainty around permitting, and asset sales have declined significantly. The prospectivity of ATP 946 does not provide sufficient incentive to offset these factors."

Red Sky will continue to assess other gas and energy opportunities as they become available.


Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Most Popular Articles
From the Career Center
Jobs that may interest you
Project Manager/Engineer
Expertise: Petroleum Engineering
Location: Sugarland (Houston), TX
PLC Engineer
Expertise: Petroleum Engineering|Refinery Specialist
Location: Sugarland (Houston), TX
Business Development Manager - Drilling
Expertise: Business Development|Sales & Marketing|Subsea Engineering|Umbilicals, Risers and Flowlines
Location: Houston, 
search for more jobs