Omega Oil & Gas Starts Drilling at Canyon-4 to Extend Resource Appraisal in Queensland

Drilling Commences at Canyon-4 to Build on Canyon-3 Success

Omega Oil & Gas (ASX:OMA) has kicked off drilling at Canyon-4, the second well in its fully funded 2026/27 appraisal program in Queensland’s Taroom Trough. Positioned roughly 8km south of the highly successful Canyon-3 well, Canyon-4 aims to extend the understanding of a thick, continuous Permian oil and gas-bearing sandstone system that has emerged as a potential game-changer for the region.

The Canyon-3 well, which Omega announced in August, intersected a 526-metre thick hydrocarbon interval with 170 metres of net pay across six stacked reservoirs. Notably, the Canyon Sandstone primary target was 14% thicker and exhibited 55% higher porosity compared to the earlier Canyon-1 well, underscoring the quality and extent of the resource. Canyon-3 also revealed an additional gas and condensate-bearing interval in the Lower Kianga Sandstone, highlighting the multi-layered potential of the basin.

Testing Reservoir Continuity and Quality at Depth

Canyon-4 is planned to reach approximately 3,900 metres measured depth with a 24-degree deviation, targeting a highly overpressured, stacked sequence of Permian sandstone reservoirs. The primary objective remains the Canyon Sandstone, with the well designed to validate reservoir continuity and hydrocarbon phase distribution across Omega’s Petroleum Contract Areas (PCAs) 342 and 343. The well will also acquire conventional core samples and a comprehensive wireline log suite to support detailed technical evaluation.

Results from Canyon-4, expected by the end of September, will be integrated with existing data to confirm the presence and quality of oil and gas-bearing formations over an area exceeding 400 square kilometres. This forms part of Omega’s strategy to mature its resource base in the eastern Taroom Trough, a frontier within the Bowen Basin with growing recognition as a significant petroleum province.

Program Structure and Future Drilling Plans

The 2026/27 appraisal campaign comprises four vertical wells, including Canyon-4, followed by one or two horizontal wells with lateral lengths up to 2,000 metres designed for flow testing. After Canyon-4, Omega plans to drill Canyon North-1 and Canyon North-2 wells in ATP 2081, subject to land access and joint venture approvals, to further delineate the northern extent of the resource.

Each vertical well is expected to take around 30 days, including drilling and rig relocation. Omega retains flexibility to extend rig contracts based on operational outcomes, providing optionality to accelerate or expand the campaign as warranted.

Capital Position and Value Catalysts Ahead

Omega remains fully funded for its 2026/27 program, backed by a strong cash position disclosed in prior announcements. The company’s CEO, Trevor Brown, emphasised that the play-defining appraisal program is designed to deliver a steady pipeline of value catalysts over the next 12 months, with updated resource assessments anticipated in late 2026. The campaign builds on Omega’s technical track record, including the successful Canyon-1H well which demonstrated commercial oil flows and significant reservoir overpressure.

With drilling results from Canyon-4 imminent, market participants will be watching closely to see whether Omega can confirm the scale and quality of its Taroom Trough resource, potentially positioning it as a key player in Australia’s evolving energy landscape.