Omega designs sideways drill campaign to tap gas wells

Omega Oil and Gas is closing in on a start to an innovative horizontal drilling program designed to tap resources at it’s 100 percent-owned Canyon Gas Project in southern Queensland’s Taroom Trough. The company announced its maiden 2C contingent resources following a drilling campaign in the Company’s ATP 2037 and ATP 2038 permit areas. Image: Canyon 2 Permian Deep Gas well It's told the ASX that analysis estimates net gas resources of 1.24 TCF and 68.8 million barrels of condensate. Allocated resources were based on a modelled average reservoir thickness of 27m in the Kianga Formation which is 221m thick at the site of the Canyon 2 well. Horizontal drilling Omega is planning to test the producibility of gas and liquids from the Kianga formation by the drilling of a horizontal well and multi-stage stimulation program it said in an ASX report. ‘Given that stimulated vertical wells in the Taroom Trough have to date delivered sub-commercial flow rates of gas, Omega considers a horizontal well is necessary to test whether the large volumes of gas contained within the Kianga formation can be delivered at potentially commercial flow rates. ‘The catalyst for explosive value-growth in the US unconventional resources was the shift from vertical to horizontal wells. ‘Early adopters and first-movers reaped the rewards. The Bowen Basin appears to be entering the early phase of that same evolution, and Omega is well positioned to be among the first movers.’ Based on the current availability of a suitable drilling rig, the results of the program are currently expected in Q3 2024. This was a significant resource for Omega, and for Queensland, with some exciting potential for upside in untested areas of the reservoirs said special advisor to Omega’s Board, Trevor Brown. “The result will help us with our strategy to de-risk what we believe is a potential 3 TCF play,’ Mr Brown said. “The independent assessment by the internationally respected Netherland, Sewell & Associates, Inc. confirms large quantities of hydrocarbons, both gas and liquids as a contingent resource. “Omega’s focus is now on testing the producibility of the reservoir by drilling an innovative horizontal well at the location of Canyon-1. “This approach will leverage the best technology available, drawing on the experience of one of our major investors Tri-Star, and is aimed at unlocking what could be the next generation of East Coast gas resources.”

Omega designs sideways drill campaign to tap gas wells

Industry Queensland

Related News

Cambridge reveals Upper Haughton energy plans

Copper smelter back online after steam burn incident

QPM keen to capitalise on stronger gas position

Get access to breaking mining news, now.