Australian exploration and production company Red Sky Energy has acquired a 35 per cent stake in Block 6/24, offshore Angola, marking its first foray into Africa's oil and gas market. Angola's production is around 1.1 million barrels a day, making it an attractive destination for the company.

Red Sky Energy has been exploring opportunities across the continent for the last three years and found significant opportunities in Angola.

The potential of Block 6/24, particularly the Cegonha oil discovery, was acquired through direct negotiation with the government. It is located approximately 12km from Luanda and the refinery, with an existing well and the Cegonha oil discovery.

The heavy crude, with an API of roughly 20, is produced in nearby fields, making it a convenient opportunity for first-entry into the country.

Red Sky Energy has partnered with Sonangol, the national oil company, and ACREP, with a 35 per cent stake, Sonangol will operate with 50 per cent, and ACREP with 15 per cent.

The agreement outlines extensive geological and geophysical studies over three years and a potential drilling decision in year 4.

Key milestones for Red Sky Energy in this timeline include studying and possibly reprocessing existing seismic data, assessing how to develop the field, and deciding whether to re-enter the existing well or do a sidetrack or new appraisal well.

Beyond Block 6/24, Red Sky Energy aims to create a major profit center in Angola, focusing on existing discoveries or those in production.