Omega Oil & Gas (ASX: OMA) has started drilling the first well of its largest-ever appraisal program in Queensland’s Taroom Trough.

The Canyon-3 well opened the fully funded 2026/27 campaign, designed to prove the scale of the Permian oil and gas play across Omega’s acreage.

The program comprises four vertical appraisal wells, one a month, followed by one or two horizontal wells of up to 2,000 metres.

Main image: Well pad preparation May26

Omega is using an H&P FlexRig that recently finished a program for Shell on the trough’s western flank.

Canyon-3, 10 kilometres south-east of the earlier Canyon-1H well, will test the Canyon Sandstone and other stacked Permian reservoirs, with results due in late August.

Omega said its Canyon-1H well had flowed oil and gas at a rate normalised for a 2,000-metre section of 987 barrels a day and 1.45 million cubic feet.

The company said the vertical wells would guide horizontal well placement and, subject to results, could underpin a maiden contingent resource booking.

Omega said it remained fully funded, with an updated resource and reserve assessment expected late in 2026.

Chief executive Trevor Brown welcomed the start of drilling.

“The commencement of drilling at Canyon-3 marks an important milestone for Omega as the first well in our exciting 2026/27 appraisal program, designed to demonstrate the scale and quality of oil and gas-bearing reservoirs at multiple levels across our highly attractive Taroom Trough acreage area.

“Our 2026/27 campaign aims to take the next step, by proving that oil and gas bearing reservoirs of similar quality are widespread across our acreage area, and by providing evidence of the enormous scale of the oil and gas resources within the eastern Taroom Trough.

“Over the course of our program our clear goal is to demonstrate that the deep reservoirs within Queensland’s Taroom Trough can make a major contribution to Australia’s future prosperity and energy security.”

Omega’s acreage is on the eastern flank, roughly 400–480 km northwest (inland) of Brisbane and about 150 km from the Wallumbilla gas hub near Roma.

Omega has an acreage interest of 5,041 km² in the Taroom Trough.