Omega Raises A$46M at $0.41 per Share to Fund 2026 Drilling Program

Capital Raise Reflects Growing Confidence

Omega Oil and Gas Ltd (ASX, OMA) has successfully secured A$46 million through an institutional placement, exceeding its initial target of A$40 million. The placement was met with overwhelming demand from both existing shareholders and new institutional investors, reflecting strong market confidence in Omega’s strategy and the potential of its Canyon Project in Queensland’s Taroom Trough.

The placement price of $0.41 per share represented an 8.9% discount to the last closing price, a typical concession to ensure broad participation. Notably, cornerstone support came from Omega’s largest shareholders, including the Flannery family and Tri-Star Group, who will participate in the second tranche subject to shareholder approval.

Funding Growth and Exploration Activities

The capital raised will underpin a busy operational phase starting in early 2026, with plans to drill three vertical wells to delineate “sweet spots” within the Canyon Project and mature reserves. Depending on results, Omega also intends to drill optional horizontal wells to demonstrate flow rates and fluid types, critical steps toward resource certification and commercialisation.

These activities are designed to build on the success of the Canyon-1H well, which revealed substantial oil and gas flows and confirmed the presence of a large, unconventional petroleum system. The data gathered will support an updated resource estimation and maiden reserves certification expected in the second half of 2026.

Strategic Partnerships and Regional Expansion

In addition to funding drilling, Omega has signed an Area of Mutual Interest (AMI) agreement with Tri-Star and Beach Energy to jointly pursue new acreage within the Taroom Trough. This collaboration aims to leverage combined expertise and capital to expand Omega’s footprint in this emerging unconventional oil and gas basin, which is strategically located near existing pipeline infrastructure serving domestic and LNG export markets.

Omega’s management highlights the importance of a strong balance sheet to pursue growth opportunities and partnerships that can accelerate development and value creation. The company currently holds 100% working interest in the Canyon Project with no commercial royalties, providing flexibility in future joint ventures.

Market Context and Outlook

The timing of Omega’s capital raise aligns with forecasts of significant supply shortfalls in Australia’s east coast gas market from 2029 onwards, driven by declining production from mature fields and underinvestment in new sources. Omega’s unconventional gas and liquids resources in the Taroom Trough could play a pivotal role in addressing this gap, supported by proximity to Gladstone’s LNG export facilities and domestic pipeline networks.

With a highly experienced board and management team, including industry veterans with deep technical and commercial expertise, Omega is well-positioned to navigate the complexities of exploration and development in this frontier basin. The company’s phased approach to unlocking value through drilling, resource maturation, and strategic partnering aims to deliver significant shareholder value in the coming years.