Omega Oil and Gas’ successful test comes ahead of the fracture stimulation and flowback program for its Canyon-1H horizontal well in the Taroom Trough. Pic: Getty Images
Energy
Special Report: Omega Oil and Gas’ upcoming fracture stimulation of its Canyon-1H horizontal well in the Taroom Trough, Queensland, is looking promising after a key test returned strong results.
The successful diagnostic fracture injection test confirmed high overpressure of 0.79 psi/ft and favourable reservoir properties within the target Canyon sandstone reservoir, backing the favourable reservoir properties interpreted in the vertical well and observed while drilling the horizontal section.
It comes on the back of the reported success of Anglo-Dutch supermajor Shell’s appraisal wells in the same region and commitment to a long-term development program.
Proving the ability of the Taroom Trough to produce commercial gas will enable Omega Oil and Gas (ASX:OMA) to help meet the Australian Energy Market Operator’s forecasted gas supply crunch on the east coast.
This is particularly relevant as the Taroom Trough is believed to have the potential to host multi trillion cubic feet of gas.
“The successful execution of the DFIT program in the Canyon-1H horizontal well has provided an important, high-quality data set that provides enhanced confidence of obtaining a strong result from the upcoming fracture stimulation and flowback program,” managing director Trevor Brown said.
“The DFIT data analysis indicates higher reservoir pressure and lower geomechanical stress than previously modelled, and reservoir permeability in line with expectations. High overpressure is a key success factor in analogous, international basin-centred gas plays.
“Final preparations are now underway for the Canyon-1H fracture stimulation and flowback program which is expected to commence around the end of February 2025.”
OMA had recorded strong gas shows and indications of condensate throughout the 822m long horizontal section of the targeted Permian Canyon sandstone within its Canyon-1H well.
It is currently finalising the design and preparations for an eight-stage fracture stimulation and flowback program, which will be carried out around the end of February.
Highly experienced services giant Halliburton has already been awarded the contract to carry out the fracture stimulation work.
Success will go a long way towards unlocking the gross best estimate contingent resource of 1.73 trillion cubic feet of gas present within the company’s acreage.
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.
