Omega Oil and Gas (ASX: OMA) has reinforced its confidence in Queensland’s Taroom Trough as a potentially significant new source for the east coast gas market, following a series of promising results from its Canyon project appraisal program.
The company recently achieved a key milestone by flowing both oil and natural gas to surface during the successful Canyon-1H fracture stimulation and flowback program.
Building on this momentum, Omega has now received further encouraging data from its ongoing appraisal of the extensive Canyon project area.
In response to these positive developments, Omega is fast-tracking its appraisal efforts, focusing on acquiring and evaluating a comprehensive suite of subsurface data.
The aim is to inform a future drilling program that would convert the Canyon project’s existing contingent resource into reserves.
As part of its commercialisation strategy, Omega is actively engaging with potential partners to help fund the appraisal and development of its Taroom Trough assets.
The company is also exploring various commercial pathways for both near-term and long-term development of its oil and gas portfolio.
Notably, recent findings have confirmed that the oil and gas zones identified in Canyon-1 and tested in Canyon-1H are also present 15.7 kilometres away in Canyon-2, where the equivalent sandstone pay interval is thicker and of higher quality.
Chief executive officer Trevor Brown commented: “The Canyon-2 cased hole logs have provided confirmation of an extensive oil and gas province with encouraging signs pointing toward commerciality.”
Omega has now commenced a diagnostic fracture injection test (DFIT) program at Canyon-2, with a series of tests planned over the coming months in selected zones throughout the prospective Permian interval.
This program aims to gather diagnostic geomechanical data and measure over-pressure levels in multiple zones, helping to characterise changes with depth and inform zonal correlations across the project area.
Mr Brown added: “The Canyon-2 DFIT program will add to our understanding of stacked pay potential and allow important regional correlations — further de-risking the play.”
He also noted: “Omega’s cash position is strong and encouraging discussions are ongoing with potential future partners.”
With these latest developments, Omega Oil and Gas is positioning itself at the forefront of efforts to unlock new energy resources in Queensland, potentially delivering a significant boost to the east coast gas supply.
