• Omega Oil and Gas is poised to start Canyon-1H fracture stimulation on March 2, 2025
  • Frac will be followed by flow test that is expected to take about 30 days to complete
  • Successful production of gas at commercial rates will unlock multiple Tcf of gas resources

 

Special Report: Omega Oil and Gas is preparing to start the much anticipated fracture stimulation program at its Canyon-1H horizontal well in Queensland’s Taroom Trough on the 2nd of March 2025.

All camp facilities and catering services have already been deployed and commissioned while flowback and production testing equipment, along with associated personnel, are now on-site.

The frac spread, pumping services, coiled tubing unit, wireline unit, and auxiliary equipment have also started mobilisation to site while rig-up and equipment commissioning has begun.

Omega Oil and Gas (ASX:OMA) expects the fracture stimulation and flowback testing program to begin on March 2 2025 with an estimated duration of 5-7 days, which will then be followed by a flow test of about 30 days.

 

Global points of origin of equipment and personnel sourced for the Canyon-1H fracture stimulation and flowback. Pic: Omega Oil and Gas

 

“I’m delighted to announce that we have commenced mobilisation to site for our highly anticipated fracture stimulation and flowback program at the Canyon-1H well,” managing director Trevor Brown said.

“Preparations are proceeding smoothly, positioning us to commence fracture stimulation operations on March 2nd.

“Commencement of this program is a big moment for Omega. It is a culmination of years of careful planning, rigorous analysis, and commitment from our team and investors.

“The clear objective of this test is to demonstrate potentially commercial flow rates from the Canyon Sandstone.

“A successful test will be a major step toward our broader strategic objectives of enhancing shareholder value and contributing meaningfully to the energy security of Eastern Australia by unlocking the substantial potential of the Canyon project.”

The company also confirmed that former BG Group chief operating officer Martin Houston has officially assumed the role of chairman.

 

Halliburton equipment arriving on site. Pic: Omega Oil and Gas

 

Canyon-1H

OMA has already seen promising signs that Canyon-1H will be successful.

This includes the diagnostic fracture injection test – essentially a mini fracture simulation – that confirmed high overpressure of 0.79 psi/ft and favourable reservoir properties within the target Canyon sandstone reservoir.

The result found a high level of overpressure and confirms the reservoir permeability estimations, which meant it would likely flow well, a finding that could mean less wells will be required to produce the same volumes.

Canyon-1H is also close to pipeline infrastructure being about 150km from Queensland’s major Wallumbilla hub that allows gas to be sold into both the domestic and export markets.

OMA plans to carry out an eight-stage stimulation program that will enable it to determine if the Canyon reservoir can flow gas at commercial rates.

Further positive news is the reported success of Shell’s exploration and appraisal efforts in the Taroom Trough.

While the Anglo-Dutch supermajor remains tight-lipped about its operations, it has been widely reported to have enjoyed significant success, enough indeed to commit to a long-term development program.

Good tidings indeed for OMA, for which a successful fracture stimulation and flow test at Canyon-1H will potentially unlock multiple trillion cubic feet of gas present within its 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.

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