Omega (ASX:OMA) confirm discovery at Canyon-2

Omega Oil and Gas have confirmed a substantial gas discovery at Canyon-2, with the net reservoir and porosity both exceeding expectations as the company completed the wireline program over one of its emerging wells in Queensland’s Bowen Basin.

Initial log analysis verified hydrocarbon shows within the Kianga and upper Back Creek Group Formations, confirming a hydrocarbon pay as interpreted total porosities flew past predictions with an average porosity exceeding that of the energy explorer’s Tasmania-1 well.

Omega Managing Director Lauren Bennett said it was yet another set of results coming in beyond the company’s expectations.

“Petrophysical analysis on the open-hole logging data confirm porosities which are better than those encountered by BG in Tasmania-1,” she said.

“Based on these results, we are excited about the prospectivity of Canyon 1, where we expect the
Kianga formation to be similar to that encountered in Canyon 2.

“The Omega team has executed its plan for the Canyon-2 well effectively and safely, ahead of
schedule and under the pre-drill budget. This work has added to our knowledge of the play and place Omega in a position to advance its project with this new data point that will be tested in the near future.”

Omega shares lifted on the back of the news by over 20 per cent in early trading, flying in the face of an ASX energy sector moving in the opposite direction as it realises value in the immense untapped gas assets of Australia while the nation continues to stare down shortages.

Next steps: 

Mud gas and cutting samples from Canyon-1 have been sent to the lab to determine hydrocarbon composition and Omega have sent the rig to its Canyon-1 well, on course to spud before the middle of May as the company targets an upgraded resource in the near future.

OMA.AX

OMEGAOIL FPO [OMA]

ASX

$0.25

$0.005

1.96%

OMEGAOIL FPO [OMA]

Sector: Energy

Industry: Oil & Gas E&P

Employees:

Omega Oil & Gas Limited engages in the evaluation and exploration of oil and gas in Australia. It holds a portfolio of assets located in Surat Basin and Bowen Basin, Queensland. The company was incorporated in 2020 and is based in Brisbane, Australia.

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