The Queensland government has awarded exploration rights in the Taroom Trough to a joint venture led by Omega Oil and Gas, unlocking potential for Australia’s first major new oil province since the 1970s.
The government awarded the new land area covering 750 square kilometres, around the same size as Singapore, to the Omega-led joint venture with Tri-Star E&P and Beach Energy, following a competitive tender process.
The land area, designated as PLR2025-1-9, lies immediately north of Omega’s existing potential commercial area, significantly expanding the company’s operated acreage position over the highly prospective eastern flank of the Taroom Trough.
Omega now holds a commanding position in the Taroom Trough with a total acreage of 5,041 square kilometres spanning the eastern and western flanks.
Omega CEO Trevor Brown said the new area is contiguous with the company’s existing Canyon project area and close to existing infrastructure.
“Our entire operated acreage position is within a proven, prolific hydrocarbon system with enormous upside potential for both oil and gas,” Brown said.
Early indications show the Taroom Trough may be host to internationally significant volumes of oil and gas, and shares many geological characteristics with the most prolific, unconventional producing basins in the USA.
“We’ve built Omega to move fast, and this award gives us a clear runway to rapidly appraise the area and create significant value.”
The exploration package is part of a wider suite of exploration areas the Queensland government opened for tender in 2025, aimed at unlocking future energy supplies.
All gas production from the area will be sold to the domestic market.
Within Omega’s operated eastern flank areas, there are five stacked Permian reservoir layers across a large area, with only one of the five reservoir layers being tested with a horizontal well to date.
Queensland Minister for Natural Resources and Mines Dale Last said the new exploration areas are critical in boosting the state’s domestic energy supplies to cut energy prices.
“This area is emerging as a real prospect to become Australia’s first major oil province since the 1970s, with serious potential to revitalise a domestic oil production industry,” Last said.
Omega will begin an extensive drilling program for 2026 to 2027 to focus on appraising the extent of the five major reservoir intervals across its extensive areas.
The campaign will allow Omega to identify the so-called “sweet spots” and provide essential data for an upgraded resource and reserves assessment.
The company is finalising a contract for Helmerich & Payne (Australia) FlexRig 648 and has signed a binding letter of intent for the rig.
The company is well-funded for a four-well program with access to approximately AU$54 million. Omega will fund 45 per cent of the costs.
