Australia-based Red Sky Energy has secured a 35% interest in Block 6/24 offshore Angola, following the signing of a risk service contract (RSC) with the Angolan National Agency for Oil, Gas and Biofuels (ANPG).
The agreement brings together Red Sky Energy, Sonangol Exploração e Produção, and ACREP Exploração Petrolífera as joint venture (JV) partners.
The RSC marks Red Sky Energy’s foray into Angola.
The block, located in the Kwanza Basin approximately 12km offshore, covers an area of 4,930km2 with water depths ranging from 70-80m.
Existing seismic data includes 1,531km2 of 2D and 1,465km2 of 3D coverage, forming the basis for further exploration and evaluation.
Red Sky managing director Andrew Knox said: “Block 6/24 contains a potential commercial oil discovery that the JV partners plan to evaluate for early production and cash flow generation. The Block also has substantial resource potential based on the existing 2D and 3D seismic data.
“The JV partners plan to prove up these resources, further improving the economics of the Block. Several parties have expressed interest in providing 100% project finance for the development.”
Sonangol E&P holds an operating stake of 50% interest in Block 6/24, while ACREP has a 15% stake.
The contract allocates exploration and production responsibilities, with Sonangol E&P maintaining operational control. ANPG retains ownership of hydrocarbons produced, providing financial returns to partners through cost recovery and profit-sharing mechanisms.
According to Red Sky Energy, data reviewed during the negotiation process indicates the presence of the Cegonha oil field within Block 6/24. The discovery will be the subject of additional geological and geophysical studies to evaluate its commercial viability, said the firm.
In total, nine wells have been drilled in the block, further supporting the potential for resource development.
The initial exploration phase spans six years, with mandatory work obligations that include seismic data reprocessing and detailed subsurface analysis during the first three years. A decision on drilling an optional exploration or appraisal well is expected in the fourth year, contingent on the outcomes of early studies.
Block 6/24 is located in a region of established hydrocarbon production, with several discoveries in neighbouring blocks. The Cegonha field adds to the block’s potential for near-term production and longer-term resource expansion.
The RSC framework assigns operational and financial risks to Red Sky Energy and its partners while providing the opportunity for cost recovery and profit-sharing from hydrocarbons produced.
The exploration period will conclude after six years if no commercial discovery is declared. Should a discovery be confirmed, the contract will extend by 30 years for the development and production phase.
This project adds to Red Sky Energy’s existing portfolio, which includes the Innamincka gas and Killanoola oil projects in South Australia.
