Omega Oil & Gas Adds Further Weight to Taroom Trough Promise with New Study

A new study conducted by Omega Oil & Gas (ASX: OMA) and leading oilfield services specialist SLB has further confirmed the potential of Queensland’s Taroom Trough area as a future energy powerhouse for the east coast of Australia.

Omega, which is developing its Canyon discovery along with its large Taroom Trough acreage position, has learned from the modelling that the Canyon sandstone upside is comparable to the analogous and “liquids-rich” US unconventional basins such as the highly productive Eagle Ford.

The modelling has suggested that just a single Canyon sandstone reservoir layer may produce a 10-year estimated ultimate recovery of 5.72 billion cubic feet gas equivalent from a single 2,000-metre horizontal development.

Extensive Acreage

Chief executive officer Trevor Brown said reservoir modelling outcomes, combined with Canyon-2 well log and diagnostic fracture injection test data, has confirmed that Omega’s Taroom Trough acreage could accommodate as many as 418 horizontal wells at 1,000m well spacing.

“Proximity to infrastructure means the commercial threshold for development of resources from the Taroom Trough is relatively low,”. he said.

“Our growing data set shows the highly overpressured Canyon sandstone reservoir extends over a wide area, and points to significant upside potential beyond modelled results in both improved reservoir properties across our acreage area.”

Multiple Reservoir Levels

Omega and SLB’s reservoir modelling has also identified the potential for other reservoir levels within Taroom Trough to contain both oil and gas.

“Our future work program will seek to delineate the areas of highest reservoir quality and further define the scale of this exciting, emerging oil and gas province,” Mr Brown said.

The Taroom Trough region has attracted the interest of major international and Australian petroleum companies, with Shell reportedly also making a potentially significant discovery there.

While the petroleum potential of the Taroom Trough came to light more than 50 years ago, new technology and experience obtained from the US has seen a recent increase in activity across the region.