Omega records early gas flows after completing Canyon-1H fracture stimulation

Omega Oil and Gas flows gas and condensate after completing fracture stimulation at Canyon-1H
Clean-up phase of the Canyon-1H flow testing now underway
Flow testing will last for approximately 30 days to allow company to gather reservoir performance data

Special Report: Omega Oil and Gas has flowed gas and condensate to surface at its Canyon-1H horizontal well in the Taroom Trough, Queensland, after successfully completing fracture stimulation work.

The frac program was started on March 4 and was completed by the contractor – global services provider Halliburton – in line with the company’s schedule with all eight stages completed and 100% of the proppant placed.

Omega Oil and Gas (ASX:OMA) has now started the clean-up phase of the flow test where fluid pumped down the well as part of the frac process flows back out of the well.

Encouragingly, gas and condensates have already been observed to be flowing to surface in combination with the frac fluid.

Flow testing is expected to last for about 30 days, allowing the company to gather important data on the reservoir performance of the targeted Canyon sandstone.

Flaring at the Canyon-1H well is a clear sign that gas is flowing. Pic: Omega Oil and Gas

Canyon-1H

Canyon-1H was drilled to test whether the Canyon sandstone reservoir in the deep Taroom Trough is able to flow at potentially commercial rates. If successful, the Canyon Project could help meet the forecast gas supply shortage on Australia’s east coast.

Strong gas shows and indications of condensates were noted while drilling through the 822m horizontal section in the well, which was the first horizontal well to be drilled in the eastern part of the Taroom Trough.

It was followed by a successful diagnostic fracture injection test – essentially a mini-frac – in early January that confirmed high overpressure of 0.79 psi/ft and favourable reservoir properties within the target Canyon sandstone reservoir.

Successful flow testing has the potential to unlock trillions of cubic feet of gas that can potentially be brought into production relatively as Canyon is just 150km from the Wallumbilla hub that offers access to both domestic and export markets.

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.