Omega Oil & Gas Prepares for Largest Drilling Campaign to Date at Canyon-3 Well

Omega Oil & Gas (ASX: OMA) has confirmed that contractor Helmerich & Payne is mobilising a high-performance rig to the Canyon-3 well on the eastern flank of the Taroom Trough in onshore Queensland to kick off exploration for the new field season.

While the start of drilling was delayed due to later-than-expected release of the rig from the previous operator, Omega has continued to advance preparations across its acreage.

Two well pads have been constructed in PCA 342 (Omega 100% owner and operator) and construction of a third pad has commenced in the southern portion of ATP 2081 (Omega 45%, Tri-Star 30% and Beach Energy (ASX: BPT) 25%).

Additional drilling locations are progressing through the land access process to support the balance of the program.

Largest Program to Date

The Canyon-3 campaign is Omega’s largest drilling program to date and potentially the most impactful of its kind in Australia for over a decade.

It will evaluate five stacked tight-sand reservoir intervals across the company’s extensive acreage area through four vertical wells (each taking up to 30 days to complete) and up to two horizontal wells (each to 2,000 metres depth), including fracture stimulation and flow testing.

Designed to show the quality and continuity of the reservoir intervals in Canyon-1 and Canyon-2, the vertical wells will guide the selection of the highest-quality intervals for horizontal drilling, hydraulic stimulation, and extended production testing.

Omega expects the well results to support resource growth within the Canyon PCA area and provide the foundation for a maiden contingent resource booking within ATP 2081.

Large-Scale Opportunity

Chief executive officer Trevor Brown said the campaign represented the next phase in evaluating what could be a large-scale onshore oil and gas opportunity of international significance.

“Over the coming months, by drilling one well each month, we will systematically […] continue to de-risk this attractive, internationally significant, large-scale petroleum system,” he said.

"Supported by well results and a geological model built on many years of technical work and regional studies, we believe the eastern flank of the Taroom Trough offers a compelling combination of scale, reservoir quality, structural setting, and liquids potential."

"With a fully funded program and a clear strategy, we are excited to commence our program and look forward to delivering a steady flow of results as the program progresses."