Red Sky Energy Ltd (ASX:ROG)

INNAMINCKA Oil & Gas

Good Oil PresentationSeptember 2019

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Disclaimer

Forward Looking StatementsVarious statements in this document constitute statements relating to intentions, future acts and events. Such statements are generally classifiedas forward looking statements and involve known risks, expectations, uncertainties and other important factors that could cause those futureacts, events and circumstances to differ from the way or manner in which they are expressly or impliedly portrayed herein.

Some of the more important of these risks, expectations and uncertainties are pricing and production levels from the properties in which theCompany has interests, and the extent of the recoverable reserves at those properties. In addition, the Company has a number of explorationpermits. Exploration for oil and gas is expensive, speculative and subject to a wide range of risks. Individual investors should consider thesematters in light of their personal circumstances (including financial and taxation affairs) and seek professional advice from their accountant,lawyer or other professional adviser as to the suitability for them of an investment in the Company.

The Qualified Petroleum Reserves and Resources Evaluator StatementThe estimates in this report that relate to oil and gas Contingent Resources are based on, and fairly represents information and supportingdocumentation prepared by RISC, an independent oil and gas advisory firm. The RISC staff engaged in this assignment include professionallyqualified engineers, geoscientists or analysts, each with many years of relevant experience and most have in excess of 20 years.

The work has been supervised by Mr. Bruce Gunn, Principal Advisor at RISC Advisory P/L. He has over thirty years of global experience in theupstream hydrocarbon industry with Shell, Santos, GCA and RISC, with extensive expertise in oil, gas, gas-condensate, coal seam gas, shale oil andshale gas field evaluation, project stage gate reviews, due diligence assessment for mergers, acquisitions and project finance requirements,reserves assessment/certification and preparation of Independent Technical Specialist Reports. Mr. Gunn is a Member of the Society of PetroleumEngineers (SPE). He holds a B.Sc. Hons. (Earth Sciences), Flinders University of South Australia, 1973 and an M.Sc. (Oceanography), University ofCape Town, 1977 and is a qualified petroleum reserves and resources evaluator (QPPRE) as defined by ASX listing rules. These estimates conformwith the definitions of the Petroleum Resources Management Systems (2007) as published by the Society of Petroleum Engineers (SPE). Mr. Gunnis qualified in accordance with the requirements of ASX Listing Rule 5.41 and consents to the inclusion of the information in this report of thematters based on this information in the form and context in which it appears.

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Investor Highlights

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Monthly Crude Oil Prices per Barrel in AUD

• Farmed-out Innamincka project to Santos with no capital required for exploration and development of 2C Contingent Resources of 9.9m barrels and 40 BCF

• Relieved of over $13 million of environmental bond and work commitments.

• Significant oil and gas potential from four Innamincka projects with expectation of near-term cash flow.

• We aim to build ROG from this stable base

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Introduction

Red Sky Energy Limited (ASX: ROG) is an ASX listed hydrocarbon explorer and developer.

The Company is focused on near term revenues by developing significant in place resources at the Innamincka Dome Project. The broader project consists of four underlying oil and gas projects that include a portfolio of six petroleum tenements.

The tenements are located in the Cooper Basin in northeast South Australia. The Company ROG now holds a 20% interest in PRL14 (Flax Oil and Gas Project), PRL17 (Yarrow Gas Project), PRL18 (Juniper Oil and Gas Project), and PRL180, PRL181 and PRL182 (180/181/182 Project).

The Company also holds a 100% interest in the Gold Nugget Gas producing project in Wyoming, USA.

Map highlighting Company’s Projects in Cooper Basin

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Corporate Overview

ANDREW KNOX, B Com, CA, CPA, FAICDChief Executive Officer/Managing Director36 years experience, oil & gasJoined ROG in 2018

BILL LODWICK, B ScExploration & Development Manager40 years experience, oil & gasJoined ROG in 2018

70+ years of oil and gas experience

Key Executives Corporate Information

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DIRECTORS

ANDREW KNOX, B ComExecutive Director

CLINTON CAREY, B ScNon-Executive DirectorResource developer

ADRIEN WING, B Com, CPANon-Executive DirectorCo Sec

ASX Ticker ROG

Share Price at 6 September 2019 A$0.02

Shares on Issue 1,253,183,277

Fully Diluted Shares 1,783,992,757

Diluted Market Cap. A$3,567,986

Top 20 shareholders (51%) 638million

Substantial shareholders: Cashmere Dell Pty Ltd, Abacus Enterprises Pty Ltd

13.91%

Share Price

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Flax Project History

The Flax Oil Field first produced in 2004 developed under Innamincka Petroleum which was renamed Acer Energy in 2011. Soon after Acer merged with DrillsearchEnergy.

Drillsearch shut-in the field in early 2015 due to oil prices falling to under A$60 per barrel and a negative pricing outlook

Later in 2015 Beach Energy merged with Drillsearch and in 2018 Red Sky Energy acquired the assets from Beach.

shut-in

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Flax Project History

Photo of existing Flax Field production facility Aerial view of existing Flax Field production facility

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• In mid-2018 the Company had an exciting set of permits with both near and long term potential

• Financing the SA Government financial security bond attached to the Company’s Petroleum Retention Licences (PRLs) caused significant difficulties.

• Various options were explored with respect to financing the bond including self-funding or partner arrangements or a combination of the two.

• The Company completed a strategic review which led to ROG focussing on the near term cash flow project by bringing Flax back into production. This low capex cash flow generator could support exploration and further development activities on the other Innamincka projects.

• During this period we received an offer to farm in from Santos

The Last Year

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• Red Sky Energy entered into a Farm-out Agreement with Santos Ltd (ASX: STO) for our Cooper Basin licences PRL’s 14, 17, 18, 180, 181 and 182 that injects A$9 million of capital into Red Sky’s Innamincka Dome projects

• The Farm Out Agreement provides for Santos to earn an 80% interest (and operatorship) in Red Sky’s Cooper Basin licences collectively known as the Innamincka Dome. The terms provide for Santos to:

• Fund 100% of 50km2 of 3D seismic over the Yarrow gas field in PRL17, up to a maximum gross cost of A$1.0 million

• Fund 100% of an appraisal well in the Yarrow gas field up to a maximum gross cost of A$3.0 million

• Fund 100% of an appraisal well in the Flax oil and gas field in PRL14, up to a maximum gross cost of A$5.0 million

• Fund 100% of any development of the fields with no cap but to be repaid out of production.

Santos Farm Out

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• The Company explored various options over the past year with respect to financing the bond and capex attaching to the Innamincka Projects. The joint venture partnership with Santos was chosen for the following key benefits to Red Sky shareholders:

• Relieves Red Sky of the bond provision obligations with the SA Government of A$5.0million and over A$8 million of commitments attached to all licences

• Santos is a well-capitalised partner with significant Cooper Basin technical and operational experience

• The Farm Out Agreement secures funding for the work programme commitments accelerating development across all licences

• Covers development costs and we don’t have to go back to shareholders to assist funding it

Why Accept the Farm Out Option?

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Project Execution – Flax Oil and Gas Project

Map highlighting Flax Project in Cooper Basin

Overview

▪ Production infrastructure in place▪ Six production wells drilled▪ Historically, the field has produced

over 200 barrels of oil per day, and approximately 180,000bbl of 54 API oil until 2015 shut-in

▪ 3D seismic coverage

2C 9.9 mmbbl OIL

2C 3.5 mmboe GAS

Contingent Gross Resources

Next Step

▪ Drill one horizontal appraisal well in the field

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Project Execution – Yarrow Gas Project

Map highlighting Yarrow Project in Cooper Basin

Overview

▪ Undeveloped▪ Three wells drilled on structure 2C 3.0 mmboe GAS

Contingent Gross Resources

Next Steps

▪ Acquire 50sqkm 3D seismic▪ Drill one vertical appraisal well

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Project Execution – Juniper Oil and Gas Project

Map highlighting Juniper Project in Cooper Basin

Overview

▪ Undeveloped▪ Three wells drilled on structure▪ 3D seismic coverage

2C 0.9 mmbbl OIL

2C 0.4 mmboe GAS

Contingent Gross Resources

Next Steps

▪ Complete desktop exploration program to identify best development strategy

▪ Drilling program to follow

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Project Execution – 180/181/182

Map highlighting 180/181/182 Projects in Cooper Basin

Overview

▪ Few wells drilled▪ Sparse 2D seismic coverage 2C Nil

Contingent Gross Resources

Next Steps

▪ Complete desktop study to identify exploration strategy.

▪ Seismic and drilling program to follow

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2019/20

YARROW

• Med term opportunity

• 3D Seismic• Drill appraisal well• Gas pipeline & field

development

2020/21

FLAX

- Test wells to establish

short term production

• Drill one horizontal appraisal well

2021

JUNIPER

• High potential

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2022 +

• EOR in Flax

• Development and

exploration on high

value prospects

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ROG Project Development Preferences

9.9 mmbbl2C OIL

2C0.9 OIL0.4GAS

1.41.7

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2C3.0 GAS 4.4

3Cmmboe

Potential for reserve upgrade

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Why Invest In Red Sky Energy?

Carried Capex and Near Term Revenues

Innamincka project to deliver oil and gas

productionDe-Risked Operations

Carried work program.Previously producing oil

project includes well-maintained production assets and shut-in wells

Economics

High margin revenues with high potential exploration and development on further

projects

Market

Optimistic Oil and Gas price outlook -

rebounding after 2015 slump

Long Term Potential

Significant Oil and Gas exploration potential across all four Innamincka projects

Actively seeking new projects.

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Summary

• Four oil and gas projects in Australia’s Cooper Basin

• Farm out completed with 20% carried interest in Yarrow 50 sq km 3D seismic, one Yarrow well and one Flax well

• Carried capital requirements to develop Yarrow and Flax Projects with a 2C Contingent Resources of 40BCF and 9.9m barrels of oil

• Australian dollar oil and gas prices have been at four year highs

• Significant oil and gas potential from all four projects

• Flax and Yarrow Projects have existing contingent resources with potential upside

• Juniper and 180/181/182 Projects represent exciting exploration targets for both oil and gas

• Company can now focus on other significantly value accretive opportunities

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Andrew KnoxManaging Director

Red Sky Energy LimitedLevel 17, 500 Collins St Melbourne VIC 3000 Australia+ 61 3 96140600+ 61 407356557andrew.knox@redskyenergy.com.au

redskyenergy.com.au

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Appendix – Gross Contingent Resource detail

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