Omega Oil & Gas is gearing up to execute its two well Permian Deep Gas (PDG) exploration program – within ATP 2037 and 2038 – in Southeast Queensland in Q1 2023.

The company’s Surat Basin acreage spans over 250,000 acres and is around 50kms from existing gas infrastructure and pipelines which feed into the Aussie East Coast gas market and Gladstone LNG export terminals.

The plan is to test the Permian Deep Gas potential of tight sandstones within the Permian Kianga Formation, which has an independent prospective resource of 3TCF of gas and 233 mmbbl of associated liquids.

Omega Oil & Gas (ASX:OMA) has contracted the services of SLB (formerly Schlumberger) Land Rig 185 for two firm wells and two contingent wells.

“Omega is now very well positioned to commence drilling in Q1 2023,” MD Lauren Bennett said.

De-risking drilling the key

Bennett says SLB brings a wealth of experience and unparalleled technical and operational support which will help de-risk the operational phase of the Permian Deep Gas program.

“We are currently also progressing negotiations with SLB with regards to an integrated services agreement which will mean further optimisations for Omega, I anticipate to be able to provide a further update in the coming weeks,” she said.

The company has also procured long lead items and is finalising key service contracts ahead of the campaign kicking off next year.

Land holder agreements and community support

In addition to securing a drilling rig, Omega has finalised land holder agreements for both the nominated preferred well locations.

“It is very important for Omega to establish itself as a constructive member of the Darling Downs Community and land access agreements for our first two wells is an important first step,” Bennett said.

“I would also like to thank the community of Tara, Queensland for the support in which they have offered Omega over the last year.

“It is very pleasing that Omega has the support of the town closest to its tenements, and more importantly we are encouraged by the resources available to Omega at Tara.

“It is important for Omega to build relationships with the community as it will set us up for long term success”

This article was developed in collaboration with Omega Oil & Gas Limited, 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.