Omega has successfully completed testing of its Bennett-1 and Bennett-4 oil wells which demonstrated the long-term viability of ongoing production from the field in Queensland.
Both wells were found to be in good condition and achieved peak production rates of over 30 barrels per day before stabilising at 15bpd to 20bpd – enough to warrant long-term production.
This is pretty much in line with Omega Oil & Gas’ (ASX:OMA) expectations and will enable it to focus its IPO funds on the high-value, multi-trillion cubic feet basin-centred gas play in Queensland’s Surat Basin.
The company had raised $15m through its oversubscribed initial public offering.
“The results affirm Omega’s reserves position and, as we gather more data in the coming months the Omega team will review and update the PL17 Oil Reserves and Contingent Resources. I anticipate providing an update to the market in the coming months,” managing director Lauren Bennett said.
Planning for its drill campaign targeting the Permian Deep Gas targets in ATP 2037 and ATP 2038 is now underway.
Bennett Oilfield
The Bennett Oilfield in the 105km2 PL17 permit within Queensland’s Surat Basin was shut in March 2019 due to very low oil prices.
Production history of both wells is poorly documented, though various historical sources and the production database from the Queensland project has allowed the company to estimate that 279,547 barrels of oil has been produced from Bennett-1 and 64,476 barrels from Bennett-4.
It currently has Proved and Probable Reserves of 130,113 barrels of oil though the Best Estimate (2C) Contingent Resource of 723,301 barrels of oil would require more work on geophysical structure mapping, detailed planning and budgeting of a forward strategy as well as new wells before a Reserve in the Dev-A and Dev-B areas can be determined.
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.