Omega has closed the chapter on successful drilling at its Permian Deep Gas play in southeast Queensland and is now planning work that will determine the Canyon wells’ ability to flow gas.

Preliminary analysis of wireline logs acquired from the Canyon-1 well, which was drilled to a total depth of 4,000m, have confirmed the presence of several gas and liquid hydrocarbon zones in both the primary target Kianga Formation and the deeper Upper Back Creek Group, consistent with the results from the first well – Canyon-2.

Additionally, preliminary petrophysical analysis has identified 110m of net pay in Canyon-2, and 83m of net pay in Canyon-1 based on industry standard cut-off for tight gas plays.

Omega Oil & Gas (ASX:OMA) also received further encouragement from the log porosities, which range between 7% and 9% in both wells, and average gas saturation ranging from 52% to 60%

The upper Kianga Formation also appears to be more gas prone though the company noted that analysis is ongoing and the results will be refined as the team continue to work through zones of interest to identify hydraulic stimulation targets.

Specialist engineers and petrophysicists have been engaged to analyse all of the data acquired on the two wells and planning is underway for the hydraulic stimulation program.

Managing director Lauren Bennett said the acquisition of wireline logs marks the successful completion of the company’s Canyon drill campaign, which was aimed at demonstrating the presence of hydrocarbon rich zones in its acreage and hydrocarbon bearing reservoir(s) suitable for hydraulic stimulation.

“We achieved these objectives and exceeded our expectations,” she added.

“The forward program will now focus on designing and delivering the hydraulic stimulation and firming up our plans to drill horizontal wells to better understand commercial prospectivity of the play.

“We expect that these operations will be carried out later this year with flow testing continuing into 2024.”

The company noted that cement plugs were run at the end of the intermediate section in Canyon-1, allowing for the option of re-entry in the future to either run casing and fracture stimulation as a vertical well or drill a horizontal section and case for future hydraulic stimulation.

Moving towards flow testing

Omega is currently focused on interpreting the newly acquired datasets to inform final completion design for the two wells.

This includes completing the analysis of the cuttings and integration into a petrophysical mineralogy model to better understand clay content, finalise petrophysical interpretation, develop a regional stress model and complete cased hole logging runs and DFIT.

Hydraulic stimulation, which is essential for getting tight sandstone plays such as the basin centred gas resource identified in the two Canyon wells to flow at commercial rates, will then be carried out and the wells placed on an extended flow test.

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.