Omega’s Taroom Trough Expansion Hinges on Success of Lorelle-3 Well

Strategic Expansion in the Taroom Trough

Omega Oil and Gas Limited has taken a decisive step to broaden its influence in the Taroom Trough by acquiring a 19.43% equity interest in Elixir Energy Limited for $13.9 million. This transaction, executed via a placement of new shares at $0.041 each, positions Omega as a significant shareholder in one of Queensland’s most promising onshore gas and liquids basins.

The Taroom Trough, part of the Bowen Basin, is increasingly recognised for its unconventional oil and gas potential. Omega’s investment not only grants access to Elixir’s western flank acreage but also complements its existing interests on the eastern flank, effectively expanding its operational footprint across multiple play types within the basin.

Near-Term Catalysts and Operational Influence

One of the key attractions of this deal is the upcoming drilling of the Lorelle-3 horizontal well, scheduled for January 2026. Horizontal drilling techniques have proven effective in unlocking the unconventional reservoirs in the Taroom Trough, and Omega’s operational experience is expected to add value to this endeavour. The funds raised through the placement will be directed towards drilling, fracture stimulation, and flow testing activities on ATP 2056, where the Lorelle-3 well is located.

Beyond financial investment, Omega secures significant governance rights, including the ability to nominate up to two directors to Elixir’s board, participate in a newly established technical committee, and maintain equity participation rights in future capital raisings. These provisions enhance Omega’s ability to influence project execution and strategic decisions within Elixir.

Funding and Future Growth Prospects

Following the initial placement, Omega and the Nero Resource Fund plan a conditional second tranche raising an additional $2.68 million, with Omega’s share being $0.68 million. This tranche is subject to Elixir shareholder approval expected in January 2026. The combined investment ensures Omega maintains its 19.43% stake and continues to benefit from Elixir’s exploration activities.

Importantly, Omega remains well-capitalised with over $55 million available to support its flagship Canyon Project appraisal program slated for 2026 and 2027. This program includes plans for multiple vertical and horizontal wells, further underscoring Omega’s commitment to unlocking the Taroom Trough’s resource potential.

Positioning for a Pivotal Period

Omega’s CEO Trevor Brown emphasised the strategic nature of the investment, highlighting the company’s ambition to be the partner of choice in the Taroom Trough. With increased drilling activity anticipated across the basin, the next 12 to 18 months are poised to be transformative for Omega and its shareholders. The Lorelle-3 well, in particular, represents a significant near-term exploration catalyst that could materially enhance the valuation of Omega’s expanded portfolio.

As Omega integrates its new stake in Elixir and advances its own projects, market participants will be watching closely to see how these developments translate into operational success and value creation in one of Australia’s most prospective onshore energy provinces.