Omega Oil & Gas adds to Taroom excitement with “outstanding” Canyon-4 results

• Canyon-4 delivers best Canyon well result to date
• Highlights Canyon’s resource upside with strong oil indicators
• Multiple reservoir targets intersected
• Canyon-4 drilled through the full Permian sequence

Omega Oil & Gas (ASX: OMA) has obtained strong oil indications with the best results to date at its large Canyon project in the Taroom Trough in Queensland.

Canyon-4, the second vertical well in its fully funded 2026/27 appraisal program on the eastern flank of the Taroom Trough, has continued to build the evidence for a continuous resource play in one of Australia’s “hottest” petroleum exploration regions.

“We’re very excited by the outstanding results of Canyon-4, which delivered the thickest sequence, most net pay and highest reservoir quality of any Canyon well to date,” CEO, Trevor Brown, said.

“The results further demonstrate the quality, scale and continuous nature of the stacked Permian oil and gas play across the Taroom Trough’s eastern flank. Encouragingly, we are encountering improved reservoir characteristics with each well drilled in our extensive appraisal program.”

Canyon-4 is the second well in a vertical drilling program designed to systematically test how reservoir quality and hydrocarbon distribution vary across our extensive acreage.

“In Canyon-4, we invested in additional core and a comprehensive wireline logging program which provides us with an extremely high-quality dataset,” Mr Brown said.

“Each successful appraisal well gives us greater confidence in our geological model and improves our ability to predict the nature and distribution of these reservoirs, as we take the program north into ATP 2081 and evaluate the play’s potential continuation to the south.”

Mr Brown said an area of approximately 400 sq. km centred on the Canyon wells drilled to date could support around 160 horizontal development well locations, based on 2,000m laterals at a spacing of approximately 2.5 sq. km per well.

Notably, in the best Canyon result to date, a 589m gross oil and gas-bearing sequence with 197m of aggregate net pay was intersected, more than Canyon-3 (526m; 170m) and Canyon-1 (433m; 132m).

Omega also noted the results have identified improving reservoir characteristics, with the average porosity in the primary Canyon Sandstone target increasing from 7.4% at Canyon-11 to 12.1% at Canyon-4, with formation evaluation data supporting a multi-level, over-pressured Permian oil and gas-bearing reservoir system across the eastern flank.

The results to date have provided evidence for the significant resource within Omega’s acreage and has greatly increased the continuing positive appraisal results. Omega is targeting an upgraded oil and gas resource assessment by 1Q 2027.

The Canyon-4 wireline, core and geological data will now be integrated with the company’s existing well and seismic datasets to continue reducing subsurface uncertainty and establishing:

Meanwhile, the rig is now moving to the Canyon North-1 well location in permit ATP 2081.

OMA was up 10.8% to 72.0¢. Mkt cap $351.4M.

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