Key Highlights

  • Canyon-4 intersected a 589m gross oil and gas-bearing sequence with 197m of aggregate net pay, above Canyon-3 and Canyon-1.
  • Average porosity in the primary Canyon Sandstone rose from 7.4% at Canyon-1 to 12.1% at Canyon-4.
  • Omega is targeting an upgraded resource assessment by the first quarter of 2027, and the 2026/27 appraisal program is described as fully funded.

Omega Oil & Gas Limited (ASX:OMA) reported results on 12 October 2026 from Canyon-4, the second vertical well in its 2026/27 appraisal program on the eastern flank of Queensland's Taroom Trough. The company describes the outcome as its best Canyon well result to date.

Canyon-4 results

Canyon-4 recorded a 589m gross oil and gas-bearing sequence with 197m of aggregate net pay (true vertical thickness). By comparison, Canyon-3 recorded 526m gross and 170m net, and Canyon-1 recorded 433m gross and 132m net. Average porosity in the Canyon Sandstone target was 12.1% at Canyon-4, up from 7.4% at Canyon-1.

Drilling and core

The well reached total depth of 4,017m measured depth in basement and is the first modern well to penetrate the full Permian sequence on the southern Taroom Trough's eastern flank. It recovered 111.2m of core, a 94.6% recovery, across three key reservoirs, and intersected both the Lower Kianga Formation and the Tinowon Sandstone. Gas ratios and petrophysical analysis indicate oil through most reservoir intervals.

Development potential and resource

The company estimates that about 400km² centred on the Canyon wells could support around 160 horizontal well locations, based on 2,000m laterals at roughly 2.5km² per well. Omega is targeting an upgraded oil and gas resource assessment by the first quarter of 2027.

Company profile

Omega Oil & Gas describes itself as a dynamic Australian exploration company with a sole focus on oil and gas resources in Queensland's Taroom Trough. Its 2026/27 appraisal program on the eastern flank includes vertical wells such as Canyon-1, Canyon-3 and Canyon-4, and the company says the program takes it north into ATP 2081 and evaluates potential continuation of the play to the south. Canyon-4 included additional core and a comprehensive wireline logging suite.

Sector backdrop

The Taroom Trough in Queensland holds stacked Permian oil and gas reservoirs that several companies, including Omega, Elixir and Shell, are appraising or developing. Appraisal wells measure net pay, porosity and fluid content, which feed into resource assessments, while horizontal wells and flow tests are used to show whether hydrocarbons can be produced at commercial rates. The area is close to existing gas pipelines and LNG export infrastructure, which affects how quickly any discovery could be developed. Porosity, pressure and permeability tend to vary across a basin, so results from one well do not automatically carry over to the next.

Reservoir intervals and evidence

The well intersected the Lower Kianga Formation, described as a high-quality and regionally extensive reservoir interval, and the Tinowon Sandstone, which is equivalent to the gas condensate-bearing interval on the western flank of the Taroom Trough. The company reports a petroliferous odour and fluorescence and gas bubbling from the core, and says gas ratios indicate oil through most reservoir intervals. Core recovery of 94.6% across 111.2m provides material for laboratory analysis, which feeds into resource evaluation and the program's next steps.

Risks and uncertainties

The 160-well figure is a spacing-based estimate rather than a booked resource, and vertical appraisal wells do not demonstrate flow rates. Horizontal flow testing is still ahead, and commercial viability depends on those results. Appraisal outcomes can vary from well to well.

What to watch next

The rig is moving to the Canyon North-1 location in ATP 2081, with Canyon North-2 also planned and civil works finalised. Horizontal flow testing is scheduled for the first half of 2027, and the company says the program remains fully funded and within budget.

Wrapping up

Canyon-4 adds thicker net pay and higher porosity readings than the earlier Canyon wells. The more consequential tests, horizontal flow results and the updated resource assessment, are still to come. The next wells and flow tests will add further data.