Omega Oil and Gas Limited (ASX:OMA) has intersected 293 metres of gas shows within the Kianga Formation and upper Back Creek Group at its Canyon-2 well in Queensland.
The Canyon-2 intersections correlate with historical discoveries including Tasmania-1 – these discoveries are an extension of the plays currently being appraised by Shell.
Omega Managing Director Lauren Bennett said the company was very excited with the results, which were an excellent start to its basin-centred gas drilling campaign.
Bennett said: “Our pre-drill expectations for this phase were met and exceeded.
“In fact, preliminary analysis of the data would indicate that we have intersected a thicker gas column than initially forecast – we hope to confirm this with the results of the open hole logs.
“The Omega team has executed its plan for the Canyon-2 well effectively and safely, adding to our knowledge of the play and placing Omega in a position to advance its project with this new data point that will also be cased and tested in the near future.
“The strong presence of gas over the sandstones and coals of the Kianga Formation and the upper Back Creek Group is very encouraging, and the success of the well results now means the company will push forward with casing, completing and testing the well.”
Omega reported that the drilling phase was tracking ahead of schedule, with the rig preparing to run wireline logs prior to casing and suspending the wells for future completion and flow testing.
Bennett continued: “Given the forecast gas supply shortages, finding and developing new sources of unencumbered gas is critical.
“Omega’s proximity to well established Queensland gas infrastructure and the clear requirement for more gas in the major population centres to feed industry, places Omega in a favourable position to build on this exploration success and the company looks forward to further de-risking a potential 3-TCF* of prospective gas resource.”
