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Omega Oil & Gas (ASX:OMA) has tantalised shareholders with reports of “strong gas shows and indications of condensate” at its Canyon-1H well.
With drilling now complete, the next big catalyst for the company’s share price will be the testing program in Q1 2025 that aims to determine whether or not its Canyon acreage is conducive towards a commercially feasible fracking operation.
The well was drilled to a total depth of 4,616m, though it stopped there as a downhole tool failed. But, Omega reported on Friday, by that point the drillers had gotten deep enough.
Cement has for now been placed in the asset and the rig will be released on the 29th of October ahead of the test run early next year.
According to early stage data, drillers successfully perforated an 822m long section of the targeted Canyon Sandstone (after which the well is named).
Early stage evidence of potentially moveable hydrocarbons came down to good old fluorescence testing. Investors will likely be more interested in the actual data returned from the Q1 2025 test run.
Omega chief Trevor Brown extrapolated on how the well was sunk in QLD’s Taroom Trough region.
“The objective of the program was achieved by providing a wellbore from which a large reservoir section can be fracture stimulated and flow tested to show the productive capacity of the Canyon Sandstone,” Brown said.
“The 822m reservoir section drilled allows for up to 9 frac stages to be performed.”
OMA last traded at 30cps.
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