Omega Oil and Gas (ASX:OMA) is progressing its Permian Deep Gas (PDG) play in Queensland, on-track for drilling to start before April 2023.

During January, SLB Land Rig 185 was successfully mobilised from the Northern Territory to Toowoomba, QLD, and has undergone and passed third-party inspections to ensure it meets all necessary safety and operational standards.

The rig is scheduled to be mobilised to the Canyon-2 well site this week.

The Canyon-2 lease pad is completed and is ready to receive the rig having received final acceptance from SLB, and the cellar and conductor have been installed.

The site works for the Canyon-1 lease pad have also been completed.

Omega has awarded a fully integrated services contract to SLB.

This contract includes mudlogging, drilling fluids, directional drilling, cementing and wireline logging.

The award of this contract is the last step in the procurement of key services for the PDG program.

Omega Managing Director Lauren Bennett said: “Having the rig ready for mobilisation to site, the well pads completed and necessary services contracts finalised demonstrates significant progress on Omega’s Permian Deep Gas two well program.

“The achievement of these milestones are in line with the program schedule and represent another big step toward the company’s vision to de-risk gas projects of scale that can help arrest the significant forecast gas supply shortfall faced by the Australian East Coast market.

“To progress our innovative Permian Deep Gas program, Omega has expanded its relationship with global technology company SLB, through a new fully integrated services contract.

“SLB brings world-class technical and operational expertise to the table.

“I am confident that, as we progress our Permian Deep Gas program, the relationship between SLB and Omega will continue to grow and contribute to the successful execution of our drilling program.

“Based on current progress, Omega anticipates the Canyon-2 well will be spudded prior to April this year, on budget and on schedule with our original plan.

“Commencing drilling will be the first tangible activity focussed on Permian Deep Gas in the Bowen and Surat Basin since British Gas executed its exploration wells in 2012.

As operational activity progresses we will provide a further update.”