Omega rides high on outstanding results at Canyon-2

Omega Oil and Gas has reported 'outstanding' success, with its Canyon-2 well in the Tara region intersecting 293m of gas and liquid hydrocarbon shows. Canyon-2 is the first of a pair of wells at the centre of Omega’s Permian Deep Gas exploration program, which aims to prove the prospectivity of the Kianga Formation and coals in the Permian aged rocks of the Bowen Basin, with the Back Creek Group as a secondary target . The Canyon-2 well was spudded on March 19 and has reached a depth of 3807m MDRT (Measured Depth Rotary Table), drilling through the Kianga Formation and the upper Back Creek Group. The results there confirm the continuation of the Kianga and upper Back Creek Basin-centred gas play from Shell’s Tasmania-1 gas discovery well, according to Omega. Its announcement midweek saw share values soar almost 60 per cent to reach 31 cents on Friday. "We are very excited with these results, and they are an excellent start to our Basin-Centred Gas drilling campaign," Omega managing director Lauren Bennett said. "Our pre-drill expectations for this phase were met and exceeded. In fact, preliminary analysis of the data would indicate that we have intersected a thicker gas column than initially forecast. "We hope to confirm this with the results of the open hole logs. “The Omega team has executed its plan for the Canyon-2 well effectively and safely, adding to our knowledge of the play and placing Omega in a position to advance its project with this new data point that will also be cased and tested in the near future." Related: Rougemont flow rates see State Gas review its strategy Ms Bennett described the strong presence of gas over the sandstones and coals of the Kianga Formation and the upper Back Creek Group as very encouraging. The success of the Canyon-2 well results means the company will push forward with casing, completing and testing the well. “Given the forecast gas supply shortages, finding and developing new sources of unencumbered gas is critical," ms Bennett said. "Omega’s proximity to well-established Queensland gas infrastructure and the clear requirement for more gas in the major population centres to feed industry, places Omega in a favourable position to build on this exploration success and the company looks forward to further de-risking a potential 3-TCF* of prospective gas resource.” It is anticipated the rig will start mobilising to Canyon-1 as early as April 17. Omega Oil and Gas acquired the exploration tenements ATP 2037 and 2038 as part of its purchase of Cypress Petroleum from Tag Oil in 2020. Seismic line through Canyon-2 and Tasmania-1, with the proposed Canyon-1 well projected.

Omega rides high on outstanding results at Canyon-2

Industry Queensland

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