Omega is progressing the drilling of its first Permian deep gas exploration well and has already received encouraging confirmation that gas is present.

The company recorded a gas show at a depth of 2,736m when drilling the potentially high-impact Canyon-2 well through the Showgrounds Sandstone.

Whilst the Showground Sandstone is not a target interval and will not be evaluated in this well, Omega Oil & Gas (ASX:OMA) noted that the show confirms that gas has been moving through and has been trapped in the geologic section in ATP 2038.

Normal gas peaks were also recorded while drilling through the coals in the Walloon Sub-group below a depth of 1,550m.

Since then, the well has reached a depth of 2,786.5m and the intermediate casing successful set and cemented in place with drilling of the target production section expected to begin imminently.

Drilling is progressing as planned and on schedule.

Targeting Permian deep gas potential

Canyon-2 will be drilled to a total depth of 3,600m to prove the prospectivity of the tight, gas-saturated Kianga Formation, which has an independent prospective resource of 3 trillion cubic feet of gas and 233 million barrels of associated liquids.

While previous exploration by BG – now part of Shell – has already indicated that gas is present in the formation, its testing failed to isolate the best gas-bearing sand in the formation.

Omega will seek to achieve success by drilling slimmer wells to improve efficiency and fracturing the entire gas-bearing column – volcanics, clays, clastics and all – rather than trying to isolate or pinpoint the best target.

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.