Omega cheers strong gas shows in 822m horizontal section at Canyon-1H

Omega Oil and Gas intersects strong gas shows throughout 822m long horizontal section in Canyon-1H
Intersected Permian Canyon sandstone also return indications of valuable condensates
Well results to feed into design of fracture stimulation program expected to start in Q1 2025

Special Report: Omega Oil and Gas has every reason to feel positive after its Canyon-1H horizontal well recorded strong gas shows and indications of condensate throughout the 822m long section of the targeted sandstone.

The well, which landed on target and was drilled to a total depth of 4616m, is a key component of the company’s plan to determine the ability of the Taroom Trough within the southern Bowen Basin, Queensland, to produce gas commercially.

The drilled interval fell within Omega Oil and Gas’ (ASX:OMA) original plan to drill a horizontal section of 600 to 1100m in the target Permian Canyon sandstone. The 822m of reservoir intersected is ample to meet its need to test the productivity of the reservoir.

This is particularly true thanks to the strong gas shows noted – a sign that the company has picked the right interval out of many that it had available from which to conduct its testing program.

It also marks the first horizontal well to be drilled in the eastern part of the Taroom Trough and the first to be drilled as one continuous hole section incorporating both the build and horizontal well sections.

The Canyon-1H well site. Pic: Omega Oil & Gas Image: Supplied

Successful wellbore for fracture stimulation

“I am delighted to announce the successful completion of Omega’s Canyon-1H horizontal well drilling program. The well was landed on target and an 822-metre interval of the Canyon Sandstone was drilled,” managing director Trevor Brown said.

“Strong gas shows and fluorescence indicating the presence of condensate were encountered throughout the reservoir interval.

“The objective of the program was achieved by providing a wellbore from which a large reservoir section can be fracture stimulated and flow tested to show the productive capacity of the Canyon Sandstone.

“The 822m reservoir section drilled allows for up to 9 frac stages to be performed. Our fracture stimulation and flowback test program is expected to commence in Q1 2025.”

He added that demonstrating that horizontal drilling technology can be applied efficiently in the Taroom Trough moved the basin closer to development.

Rig release is expected to occur next week.

Horizontal wells provide greater surface area for increased flow rates. Pic: Omega Oil and Gas

Rich potential

Successfully proving the ability of the Taroom Trough to produce commercial gas will be hugely significant for OMA as it will unlock the best estimate (2C) contingent resource of 1.5 trillion cubic feet of gas and 68.6 million barrels of condensate meaning that this resource could play in role in easing the expected East Coast gas supply crunch.

Having condensates – light oil and other petroleum liquids – also add significant value.

This article was developed in collaboration with Omega Oil and Gas, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.