Omega Oil & Gas Launches Major Drilling Campaign with $102 Million Cash

Robust Balance Sheet Fuels Ambitious Drilling Program

Omega Oil & Gas Limited (ASX:OMA) closed the June quarter with a commanding $102 million in cash and no debt, following a successful $60 million equity raise earlier this year. This financial strength fully funds the company’s expanded 2026/27 drilling campaign in Queensland’s Taroom Trough, positioning Omega to aggressively appraise its extensive acreage and advance towards commercial production.

The company’s cash runway extends for approximately 16.8 quarters based on current expenditure levels, providing a solid buffer to execute its multi-well program without immediate funding concerns.

Drilling Program Targets Multiple Reservoirs with US-Style Well Design

The 2026/27 campaign has commenced with Helmerich & Payne’s FlexRig® 648 mobilising to the Canyon-3 well site, where drilling is expected to start around the end of July. The program includes four vertical wells and one to two horizontal wells, designed with 5½ inch casing and 2,000-metre lateral lengths; a design reflecting US unconventional standards aimed at maximising reservoir contact and flow potential.

Following the vertical wells, horizontal side-track laterals will be drilled into the most prospective intervals for fracture stimulation and flow testing in the first half of 2027. This staged approach aims to identify "sweet spots" across Omega’s acreage, refine reservoir characterisation, and underpin an upgraded resource and reserves assessment.

Rapid Land Access and Strategic Focus on Eastern Taroom Trough

Omega has secured land access for the first well in ATP 2081 in just over three months from tenure grant; an industry-leading achievement that underscores the company’s strong community and landholder relationships. This well, pending joint venture approval, will be the third vertical well in the program, testing the northern extent of the Permian play beyond the Canyon area.

The company’s focus remains on the eastern flank of the Taroom Trough, which shares geological features with some of the most prolific unconventional basins in the US. This includes multiple stacked Permian reservoir layers, structural configurations, and the presence of oil, all of which Omega aims to appraise comprehensively through its drilling campaign.

Bennett Oilfield and Partner Activities

Operations at the Bennett oilfield in PL 17 remain suspended as Omega pursues a farm down process, engaging with multiple industry participants. The outcome of this process is awaited and will be communicated in due course.

Separately, Elixir Energy Limited (ASX:EXR), in which Omega holds a 19.07% stake, has completed a 12-stage fracture stimulation at its Lorelle-3H well and commenced flow testing, potentially adding to the region’s resource momentum.

Financial and Operational Transparency

Omega’s quarterly cash flow report reveals disciplined spending aligned with its operational activities, including $4.7 million invested in exploration and evaluation during the quarter. Payments to related parties, including CEO Trevor Brown’s salary and expenditures to Tri-Star for casing and exploration services, were disclosed in line with ASX requirements.

The company holds 100% interests in PL 17, PCA 342 (ATP 2037), and PCA 343 (ATP 2038) in the Surat Basin, alongside a 45% operated interest in ATP 2081, forming the core of its Taroom Trough footprint.