Omega Oil and Gas has secured a 19.43% stake in Elixir Energy, positioning itself for a major drilling push in Queensland’s Taroom Trough during 2026. Backed by a strong balance sheet, Omega aims to unlock significant gas and oil resources across multiple projects.
- Completed $14.6 million investment acquiring 19.43% of Elixir Energy
- Nominated two directors to Elixir’s board to strengthen influence
- Major 2026 drilling campaigns planned on both flanks of the Taroom Trough
- Well-funded with approximately $54 million available for growth and appraisal
- Bennett oilfield operations remain suspended pending optimisation studies
Strategic Investment in Elixir Energy
Omega Oil and Gas has taken a significant step to broaden its presence in Queensland’s Taroom Trough by completing a $14.6 million investment to acquire a 19.43% equity interest in Elixir Energy Limited. This transaction, executed through two placements in December 2025 and January 2026, not only expands Omega’s footprint but also grants it greater influence in a basin the company believes is poised for substantial value growth in 2026.
To cement this influence, Omega has appointed two directors to Elixir’s board, effective from the start of 2026. These appointments are intended to ensure disciplined capital deployment and operational execution, aligning both companies’ strategies to maximise shareholder value.
Ambitious Drilling Campaigns Set for 2026
The coming year promises to be transformational for the Taroom Trough, with Omega and Elixir gearing up for extensive drilling activities. On the western flank, Elixir has commenced drilling the Lorelle-3 well, targeting multiple Permian sandstone reservoirs with a plan to drill vertically to 3,600 metres before undertaking a horizontal sidetrack for production testing.
Meanwhile, Omega is preparing a robust appraisal program on the eastern flank, scheduled to start in May 2026. This program includes at least three firm vertical wells with options for additional horizontal drilling, aiming to delineate reservoir quality, identify ‘sweet spots’, and mature the resource base of the Canyon Project. The use of the Helmerich & Payne FlexRig 648 underscores the technical readiness for this ambitious campaign.
Financial Strength Supports Growth
Omega enters this phase well-capitalised, with approximately $54 million in available funds, including expected research and development refunds. This financial strength provides a solid foundation to execute the 2026/27 drilling and growth programs without immediate capital constraints.
Despite the momentum, operations at the Bennett oilfield remain suspended as Omega conducts further optimisation studies and seeks farm-in partners. The company has received multiple inquiries, indicating market interest in this asset.
Outlook and Market Context
CEO Trevor Brown highlights the strategic importance of these moves amid growing domestic energy security concerns and supportive Queensland government policies. With Australia heavily reliant on oil imports, developing local resources like those in the Taroom Trough is increasingly critical.
Omega’s integrated approach; combining equity stakes, board influence, and aggressive drilling; positions it as a key player in Eastern Australia’s energy landscape. The success of these initiatives could unlock decades of commercial production and reshape the region’s energy supply dynamics.
Bottom Line?
Omega’s expanded Taroom Trough presence and well-funded drilling plans set the stage for a pivotal year in unlocking Queensland’s energy potential.
Questions in the middle?
- What early results will the Lorelle-3 well deliver and how might they impact Omega’s strategy?
- How will Omega’s board representation influence Elixir’s operational decisions and capital allocation?
- What timeline and milestones should investors watch for from the Canyon Project appraisal program?