Highlights

  • Canyon-4 intersected a 589m gross oil and gas-bearing sequence with 197m of net pay.
  • This is Omega's best Canyon well result, ahead of Canyon-3 and Canyon-1.
  • Average porosity in the Canyon Sandstone improved compared with earlier wells.
  • Two more wells are planned for the fourth quarter of 2026.

Omega Oil & Gas Limited (ASX:OMA) has announced that its Canyon-4 well has delivered its best Canyon well result to date. The well, located in Queensland's southern Taroom Trough, intersected the thickest sequence, most net pay and highest reservoir quality of any Canyon well so far.

Canyon-4 Results

Canyon-4 intersected a 589m gross oil and gas-bearing sequence with 197m of aggregate net pay. This compares with 526m gross and 170m net pay at Canyon-3, and 433m gross and 132m net pay at Canyon-1.

The well reached a total depth of 4,017m and was the first modern well to penetrate the full Permian sequence on the eastern flank of the southern Taroom Trough. A total of 111.2m of conventional core was recovered across three key reservoirs. CEO and Managing Director Trevor Brown said, "We're very excited by the outstanding results of Canyon-4."

Reservoir Quality and Resource Potential

Average porosity in the Canyon Sandstone increased to 12.1% at Canyon-4, compared with earlier wells. Mud-gas readings and petrophysics indicate oil throughout most reservoir intervals.

Omega said its focus area of about 400km² could support around 160 Horizontal Well locations. The company currently reports contingent resources of 0.4 to 4.5 TCFE (1C to 3C, unrisked), with no reserves, and is targeting an upgraded resource assessment in the first quarter of 2027.

Appraisal Program Next Steps

Canyon-4 is the second vertical well in Omega's fully funded 2026/27 appraisal program, which the company said is on schedule and within budget. The rig is moving to Canyon North-1, with Canyon North-2 also planned for the fourth quarter of 2026.

Horizontal appraisal wells with laterals of up to 2,000m are planned for the first half of 2027, with at least one expected to be flow-tested.

Key Takeaways

  • Canyon-4 is Omega's best Canyon well, with 197m of net pay.
  • Reservoir quality improved compared with earlier wells.
  • An upgraded resource assessment is targeted for the first quarter of 2027.
  • Further vertical and horizontal wells are planned in the funded program.