Omega Oil & Gas has raised $60m to fund newly upgraded Taroom Trough program

• Strong institutional demand materially exceeds expectations for capital raise.
• Powerful structural tailwinds are accelerating Omega’s pathway to development
• Horizontal wells and extended flow testing critical to unlocking commerciality.
• Planning upgraded drilling program incorporating larger diameter, longer, ‘production-ready’ horizontal wells.

Omega Oil and Gas (ASX: OMA) has received firm commitments to raise $60 million through a placement to sophisticated, professional, and institutional investors to accelerate its Taroom Trough plans in Queensland.

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The energy producer’s $60 million capital raising received very strong domestic and international support from new and existing Aussie shareholders, with demand significantly exceeding shares available under the offer.

Omega’s largest shareholders, the Flannery family and Tri-Star Group, strongly supported the placement and will be allotted new shares in tranche two, subject to shareholder approval, which will be sought at an upcoming general meeting to be held in June.

The company’s CEO, Trevor Brown, said the raising will help the company to fast-track its Taroom Trough plans, including the deployment of full-scale, “U.S.-style” well design to demonstrate commercial flow potential.

“We are moving decisively to capitalise on a unique window of opportunity in the Taroom Trough, with government support and market dynamics aligning to accelerate basin development and unlock badly needed new supplies of oil and gas,” he said.

“This raise underpins an evolution of our execution strategy – undertaking larger diameter, longer, production-ready horizontal wells, with larger stimulation programs and extended flow testing.

“This exciting program, scheduled to commence in June, will deliver maximum impact in the shortest possible timeframe, drilling across both our PCA Area and ATP 2081 to provide evidence of the scale and commercial potential of Omega’s extensive acreage area.

“At the same time, we are well placed to capture additional growth opportunities as they emerge. Our focus is clear: agility, execution and scale – progressing toward commercial outcomes and delivering material value for shareholders.”

Funds raised will be used for Omega’s upcoming work program, expected to commence in June CY26, following completion of a drilling program by another operator.

Four vertical wells will be drilled to provide evidence of resource scale within “stacked” reservoir intervals across a broad area and to delineate “sweet spots.”

One or two five-and-a-half-inch, 2,000-metre horizontal wells will include stimulation and six-month flow testing to provide evidence of development-scale flow rates

“We will pursue growth opportunities as they arise using our deep knowledge of this exciting growth basin,” Mr Brown said.

The Taroom Trough has been designated as a “prescribed project” by the Queensland government with a dedicated development plan to streamline approvals and facilitate infrastructure development.

OMA closed yesterday +12.79%, to 97¢. Mkt cap $454.08M.

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