Drilling off to a good start at Omega’s Canyon-1H well

Omega says drilling is progressing smoothly at the Canyon-1H well
Strong gas shows have been recorded while drilling within the target section
The rig release is expected to occur around 31 October

Special Report: Drilling of Omega’s Canyon-1H well in southern QLD’s Bowen Basin is progressing smoothly with the company on track to meet all objectives of the drilling program.

Omega Oil & Gas (ASX:OMA) embarked on an appraisal program across its Taroom Trough permits south-east of the Wallumbilla gas hub in southern Queensland in early September.

The company joins several other groups, including Shell and Elixir, that have collectively identified many trillions of cubic feet (Tcf) of contingent gas resources in the region.

OMA is planning to test the flow potential through a fracture stimulated horizontal well. Their acreage contains gas equivalent Contingent Resources of 0.5, 1.7 and 4.5 Tcfe in 1C, 2C and 3C categories respectively.

The 2C resource consists of 1.51Tcf of gas and 68.6 million barrels of condensate, with a 2023 two well vertical drill program returning thick hydrocarbons within the targeted, overpressured Kianga formation.

Strong gas shows recorded

So far, the company says drilling is progressing smoothly with over 550m of horizontal section drilled after the horizontal section of the well was landed precisely on target into the Canyon Sandstone.

Strong gas shows with fluorescence indicating the presence of condensate have been recorded while drilling within the target section.

After minor complications affected drilling of the build section at the start, the well was soon landed precisely on target with drilling within the horizontal section now progressing smoothly.

What’s coming up?

OMA says the rig release is expected to occur around 31 October, followed by running and cementing casing.

The company plans to complete a multi-stage hydraulic fracture stimulation, flowback and well testing program after analysing and integrating the results of the well into the final design.

The Canyon-1H horizontal well project aims to test whether potentially economic flow rates can be achieved from the highly prospective Canyon Sandstone at the base of the Permian Kianga Formation.

This article was developed in collaboration with Omega Oil & 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.