- Omega Oil and Gas (OMA) shares skyrocket on 293 metres of gas shows within its Canyon-2 well in Queensland’s Surat Basin
- The gas shows were encountered over the entire 221-metre Kianga Formation, which is the primary target of the company’s exploration program
- The occurrences of gas continued into the upper Back Creek group, and OMA decided to deepen the total depth of the well through this area
- Managing Director Lauren Bennett says while the results of the open hole logs are pending, preliminary analysis suggests a thicker gas column than initially forecast
- OMA shares closed 35.9 per cent higher at 26.5 cents on Thursday afternoon
Omega Oil and Gas (OMA) has intersected 293 metres of gas shows while drilling its Canyon-2 well in Queensland’s Surat Basin.
The gas shows were encountered over the entire 221-metre Kianga Formation, which is the primary target of the company’s exploration program.
The occurrences of gas continued into the upper Back Creek group, and OMA decided to deepen the total depth of the well through this area.
Despite extending the total depth, OMA managed to drill the well ahead of schedule.
The company said upper Back Creek was a potential additional reservoir, with significant gas peaks being recorded while drilling over an interval of 72 metres.
Omega Managing Director Lauren Bennett said the strong presence of gas over the sandstones and coals of the Kianga Formation and the upper Back Creek Group was “very encouraging”.
“Our pre-drill expectations for this phase were met and exceeded,” Ms Bennett said.
“In fact, preliminary analysis of the data would indicate that we have intersected a thicker gas column than initially forecast.
“We hope to confirm this with the results of the open hole logs.”
Now, the company will push forward with casing, completing and testing the well.
The drilling rig will move to Canyon-1, with the aim of encountering the same ‘gas-charged’ Kianga and upper Back Creek section that are predicted to be thicker and deeper than at Canyon-2.
Omega expects the drilling of Canyon-1 to be completed towards the end of May.
OMA shares closed 35.9 per cent higher at 26.5 cents on Thursday afternoon.