Omega Oil & Gas (ASX: OMA) has entered its most consequential quarter, drilling to prove a Taroom Trough crude resource central to Queensland’s push for home-grown fuel.

One of Queensland’s highest-profile junior explorers, Omega began the largest drilling and testing campaign in its history during the June quarter, fully funded and debt-free.

The company ended the quarter with $102 million in cash and no debt, after a $60 million equity raising in April.

That balance sheet fully funded an expanded program of four vertical wells and horizontal wells which included stimulation and flow testing.

Omega’s 2026/27 program has commenced, with a Helmerich & Payne FlexRig 648 rigging up at its Canyon-3 well location.

Related: Omega’s Play-Defining Campaign Commences with Drilling at Canyon-3

In its quarterly report Omega said drilling at Canyon-3 was due to begin the end of July, with results expected in late August 2026.

The program is designed to define the eastern flank of the Taroom Trough and prove up expectations it holds internationally significant volumes of oil and gas.

The company said the acreage would deliver value while strengthening Australia’s energy and liquid fuel security.

Chief executive and managing director Trevor Brown said the campaign was the largest in the company’s history.

“During the June Quarter, we materially strengthened our balance sheet, and we are now commencing our 2026/27 drilling program. With more than $100 million in cash, Omega is fully funded to execute the largest and most impactful drilling and testing campaign in the Company’s history. 

“Our focus is on delivering a safe, disciplined, data-driven program designed to further de-risk the eastern Taroom Trough, expand our understanding of the resource, and progress the project towards commercial development. 

“The coming 12 months will provide an important series of well and test results with the potential to create significant value for shareholders.”

Government momentum built alongside the drilling, with the Queensland Government beginning implementation of its Taroom Trough Development Plan on 1 June 2026.

The Office of the Coordinator-General was leading the initiative to streamline approvals, coordinate infrastructure and accelerate development of the basin.

Land access for the first ATP 2081 well was secured just over three months after the tenure was granted.

The program will appraise five major reservoir intervals across the Canyon Project and ATP 2081, building on Omega’s Canyon-1, Canyon-1H and Canyon-2 wells.

The data would support an upgraded resource and reserves assessment in the Canyon area and a maiden contingent resource booking in ATP 2081.

Omega expected the horizontal wells to be fracture-stimulated and flow-tested in the first half of 2027, with an updated resource assessment due late 2026.

Elsewhere, partner Elixir Energy completed a 12-stage fracture stimulation at its Lorelle-3H well, in which Omega holds a 19.07 per cent stake.