Omega’s Taroom Project Advances Amid Uncertainties in Funding and Drilling Timelines

Confirming a Major Petroleum System

Omega Oil and Gas Limited (ASX: OMA) has delivered a significant update on its Canyon Project in Queensland’s Taroom Trough, revealing that recent cased hole logging at the Canyon-2 well has confirmed the presence of an extensive and high-quality oil and gas petroleum system. Located 15.7 kilometres from the earlier Canyon-1H well, Canyon-2’s advanced pulsed neutron logs have identified thicker and better reservoir intervals than previously recorded, alongside new zones of potential hydrocarbons.

This confirmation builds on the successful fracture stimulation and flowback at Canyon-1H, which yielded both oil and natural gas to surface, underscoring the commercial promise of the project. The logs also allow clear differentiation between oil-bearing and gas-bearing zones, a critical factor in planning future development.

DFIT Testing and Reservoir Evaluation

Following the logging success, Omega has commenced a Diagnostic Fracture Injection Test (DFIT) program at Canyon-2. This testing will span several months and aims to measure reservoir pressures and geomechanical properties across multiple stacked zones within the Permian interval. The data gathered will be pivotal in understanding overpressure variations with depth and refining regional correlations, effectively de-risking the play and informing the design of future appraisal wells.

Omega’s CEO, Trevor Brown, highlighted that these results not only confirm the scale of the petroleum system but also point to encouraging signs of commercial viability. The company is actively integrating these findings with ongoing reservoir modelling and economic evaluations to chart a clear path toward resource conversion and development.

Strategic Progress and Forward Plans

Beyond subsurface evaluation, Omega is advancing preparations for seismic acquisition scheduled for the second half of 2025, with completion expected by mid-2026. Concurrently, the company is assessing rig and fracturing equipment availability to support a future drilling campaign, contingent on target selection and funding.

Importantly, Omega is engaged in strategic discussions with potential investors to secure funding while aiming to minimize shareholder dilution. The company’s strong cash position and 100% operated ownership of the acreage provide flexibility in structuring partnerships and development pathways.

Quality Crude and Market Potential

The crude oil from Canyon-1H has demonstrated exceptional quality, with an API gravity of 49.5 and negligible impurities, making it lighter and easier to refine than many benchmark crudes such as Brent. This premium quality positions Omega well for downstream market opportunities, with preliminary discussions underway with key Queensland players operating fuel import terminals and specialty refineries.

As Omega continues to build a robust technical and commercial foundation, the company is poised to play a significant role in supplying new sources of oil and gas to Australia’s east coast market, contributing to energy security and economic growth.