Red Sky Energy (ASX: ROG) expects to receive in April a New South Wales Government decision on allowing the Talma pilot production well in the Clarence Moreton Basin to go ahead.
The company said it had submitted all information the Department of Trade and Investment, Resources and Energy had requested.
The Talma pilot well will drill out the existing fragmented Talma-1 core hole and expose the Kangaroo Creek formation over a 90 metre interval, from 480 metres to 570 metres deep.
Once drilling is completed, a wellhead and flare will be installed and the well put into production.
Red Sky had applied for approval for the Talma pilot in November last year with a comprehensive review of environmental factors document that concluded that any impacts could be managed.
A success at Talma could go a long way towards increasing the company's resources.
Red Sky has a 30% interest in PEL 457, which contains the Talma prospect.