AUSTRALIA — Omega Oil and Gas Limited (ASX: OMA) has announced the successful completion of its Canyon-1H horizontal well drilling program in the Bowen Basin, Southern Queensland.
The well, located in Potential Commercial Area (PCA) 342, reached a total depth of 4,616 metres, with an impressive 822-metre section drilled through the targeted Canyon Sandstone.
Trevor Brown, CEO and Managing Director of Omega, expressed his delight with the program’s success.
“The well was landed on target, and we encountered strong gas shows and fluorescence indicating the presence of condensate throughout the reservoir interval,” Brown stated.
He emphasised that the drilling program has achieved its primary objective of providing a wellbore from which a large reservoir section can be fracture stimulated and flow tested.
The Canyon-1H well marks several significant firsts for the region.
It is the first horizontal well drilled into the eastern part of the Taroom Trough and the first in the area to be drilled as one continuous hole section, incorporating both the build and horizontal well sections.
These achievements demonstrate that horizontal drilling technology can be efficiently applied in the Taroom Trough, bringing the basin closer to development.
During the drilling operation, the team made a strategic decision to halt at 4,616 metres when an unscheduled trip out of the hole was required due to a downhole tool failure.
However, by this point, sufficient reservoir sections had been drilled to achieve the goal of a valid test of the Canyon Sandstone’s productive capacity.
The well has been successfully cased and cemented, setting the stage for the next phase of operations.
Omega plans to conduct a multi-stage hydraulic fracture stimulation, flowback, and well testing program in the first quarter of 2025.
This upcoming program aims to determine if potential economic flow rates can be achieved from the highly prospective Canyon Sandstone at the base of the Permian Kianga Formation.
Brown highlighted the significance of this achievement for Omega, stating: “The success of the Canyon-1H drilling program is an excellent achievement for the Omega team after 18 months of planning and preparation.”
He added that the team is excited by the excellent response of the reservoir section during drilling and looks forward to commencing the testing program early next year.
The completion of this drilling program positions Omega strongly in its efforts to unlock new gas reserves for the energy-hungry eastern states market.
With the potential for up to nine frac stages to be performed in the 822-metre reservoir section, the company is optimistic about the project’s future prospects.
As Omega prepares for the next phase of operations, the successful completion of the Canyon-1H well represents a significant step forward in the company’s exploration and development efforts in the Taroom Trough, potentially bringing much-needed new gas supplies closer to commercialisation for Eastern Australia.