Omega Oil and Gas Ltd. has raised AU$60 million through a share placement to accelerate its high-impact drilling program in Queensland’s highly prospective Taroom Trough.
The company will issue 71,428,572 new shares across two tranches at 84 cents per share.
With the additional capital, Omega is set to evolve its execution strategy. The company will move away from traditional appraisal methods in favour of full-scale, US-style horizontal wells. These production-ready wells will feature 2,000-metre lengths and larger diameter casing, designed to demonstrate repeatable, commercial flow rates.
The upcoming work program, scheduled to commence in June, includes four vertical wells to delineate sweet spots across stacked reservoir intervals.
The company will also implement one to two horizontal wells (5½ inch diameter) incorporating stimulation and six-month flow testing.
The company noted that incrementally higher well construction costs are more than offset by improved risk and production outcomes.
Omega CEO and Managing Director Trevor Brown said the company is moving decisively to position itself for the next phase of growth.
“We are moving decisively to capitalise on a unique window of opportunity in the Taroom Trough, with government support and market dynamics aligning to accelerate basin development and unlock badly needed new supplies of oil and gas.
“This raise underpins an evolution of our execution strategy – undertaking larger diameter, longer, production-ready horizontal wells, with larger stimulation programs and extended flow testing.”
Omega benefits from a large, well‑located acreage position adjacent to established infrastructure, providing an efficient and de‑risked pathway to market.
Civil works for the first well location are expected to begin in May, with the mobilisation of the H&P FlexRig 648 slated for June.
Initial resource upgrade and reserves estimate targeted for the fourth quarter followed by a further assessment upon completion of the program in 2027.
