Highlights

  • Canyon-3 intersected a 526-metre oil and gas-bearing Permian interval with 170 metres of aggregate net pay.
  • OMA shares were trading at AUD 0.60, up 12.04% during the afternoon Trading session on 24 August 2026.
  • The Canyon Sandstone primary target contained 18 metres of net oil-bearing sands at average porosity of 11.5%, compared with 12 metres at 7.4% porosity in Canyon-1.
  • Omega also identified an additional gas and condensate-bearing Lower Kianga reservoir above the Canyon Sandstone.
  • Canyon-4 is scheduled to commence in approximately seven days as the company progresses its 2026/27 appraisal program.

Omega Oil & Gas (ASX:OMA) has reported new drilling results from Canyon-3 that extend its geological interpretation of the eastern Taroom Trough, with the well identifying six oil and gas-bearing Permian reservoir intervals and a thicker, higher-porosity Canyon Sandstone section than encountered in Canyon-1. The result forms the first data point from Omega’s broader 2026/27 appraisal campaign.

Omega shares were trading at AUD 0.60, up 12.04%, or AUD 0.065, during the afternoon trading session on 24 August 2026. The stock remained up 72.86%, or AUD 0.26, over the past year.

Omega is focused on oil and gas exploration within Queensland’s Taroom Trough, where its operated acreage covers approximately 1,800 square kilometres. The current drilling program is designed to test the scale, continuity and hydrocarbon distribution of the Canyon reservoir system.

Canyon-3 Delivers 170 Metres of Aggregate Net Pay

Canyon-3 reached a total depth of 3,792.6 metres on 15 August 2026.

Since reaching total depth, Omega has completed surface logging and wireline data Acquisition across the well.

The combined drilling, surface logging and wireline results identified a 526-metre oil and gas-bearing Permian interval containing 170 metres of aggregate net pay.

Omega said the data confirmed the presence of six regionally correlatable oil and gas-bearing reservoirs, together with indications of overpressure.

The well was drilled approximately 9 kilometres southeast and 275 metres updip of Canyon-1, with the objective of testing whether the stacked Permian reservoirs extend laterally and whether Hydrocarbons continue toward the eastern part of the company’s PCA Area.

Primary Canyon Sandstone Comes in Thicker Than Canyon-1

The Canyon Sandstone was the primary target of the well and delivered a thicker reservoir section than Omega encountered in Canyon-1.

Canyon-3 intersected 18 metres of net oil-bearing sand within a 42-metre gross Canyon Sandstone interval, with average porosity of 11.5%.

By comparison, Canyon-1 contained 12 metres of net sand with average porosity of 7.4% within a 37-metre gross reservoir interval.

Omega said the Canyon-3 interval was 14% thicker and showed 55% better porosity than the equivalent section in Canyon-1.

The comparison is particularly relevant because the Canyon Sandstone has already demonstrated production capability at Canyon-1H.

That earlier well delivered a normalised production rate of 987 barrels of oil per day and 1.45 million standard cubic feet of gas per day based on a 2,000-metre horizontal well.

Lower Kianga Adds a Sixth Regional Reservoir Layer

Canyon-3 also provided new information on the Lower Kianga interval immediately above the Canyon Sandstone.

Omega identified a thick gas and condensate-bearing reservoir in the Lower Kianga with what it described as enhanced properties compared with the equivalent section in Canyon-1.

The company now interprets the Lower Kianga as a sixth regionally extensive reservoir layer within the broader Permian sequence.

Chief Executive Officer and Managing Director Trevor Brown said Canyon-3 had improved the company’s understanding of reservoir continuity, thickness and quality.

He said the result also added another target above the Canyon Sandstone, increasing the number of stacked reservoir intervals being assessed across the acreage.

Results Extend the Geological Model Across the Eastern Taroom Trough

One of the central objectives of Omega’s 2026/27 drilling campaign is to establish the scale of the petroleum system across the eastern flank of the Taroom Trough.

The company said Canyon-3 indicates the Canyon Sandstone extends at least 20 kilometres east-west from Canyon-1 through Canyon-3 toward the Cabawin Oil Field.

Regional well data also indicate continuity of the Canyon Sandstone for more than 40 kilometres north-south from Canyon-2 to Tasmania-1 within ATP 2081, followed by another 40 kilometres northwest toward Fantome-1.

Omega said Canyon-3 and the planned Canyon-4 well will provide additional well control across more than 200 square kilometres within PCA 342.

Later wells in the program, including Canyon North-1 and Canyon North-2, are intended to add further information on the extent and continuity of the system.

Modelling Provides Context for Development Potential

Omega also referred to earlier modelling undertaken by SLB using Canyon-1 and Canyon-1H data.

That modelling indicated that a single 2,000-metre horizontal development well drilled into the Canyon Sandstone at 1,000-metre spacing could deliver a 10-year estimated ultimate recovery of approximately 0.95 million barrels of oil equivalent, or 5.72 billion cubic feet of gas equivalent.

On that basis, a 200-square-kilometre area could support an indicative inventory of around 75 horizontal development wells using 2,000-metre laterals and 1,000-metre spacing.

Omega stressed that results from the current 2026/27 appraisal program will be used to test and refine that interpretation.

The company’s immediate technical objective is to determine whether the reservoir quality and hydrocarbon characteristics seen in previous wells continue across the wider Canyon Project.

Hydrocarbon Shows Recorded Across All Six Reservoirs

Canyon-3 also added more information on hydrocarbon distribution within the Permian sequence.

Oil fluorescence was observed in drill cuttings across all six reservoir intervals.

Omega said advanced surface logging provided further discrimination of hydrocarbon shows through the well, while wireline logging and petrophysical analysis supported continuity with the reservoirs encountered in Canyon-1 and Canyon-2.

The company now plans to combine this new information with existing well and seismic data to better define reservoir quality, thickness and fluid distribution.

That work will also help Omega identify areas with what it considers the more favourable combinations of porosity, reservoir thickness and hydrocarbon saturation.

Canyon-4 Is the Next Test in the Appraisal Program

With Canyon-3 completed, the drilling rig is now moving to Canyon-4 within PCA 342.

Drilling is scheduled to commence in approximately seven days, with results expected in late September 2026.

Omega’s broader 2026/27 appraisal program comprises four vertical wells followed by one or two horizontal wells with flow tests.

The company said Canyon-3 was drilled safely and efficiently using H&P Rig 648 and noted that it continues to maintain multiple rig options.

Omega also confirmed that it remains fully funded for the appraisal program.

What Investors May Be Watching

The Canyon-3 result gives Omega additional well data supporting its interpretation of a laterally extensive, stacked reservoir system across the eastern Taroom Trough.

For investors, the next key issue is whether similar reservoir characteristics can be repeated across subsequent wells.

The thicker Canyon Sandstone interval, higher porosity and identification of the Lower Kianga as an additional reservoir target broaden the technical picture, but the 2026/27 drilling program is still intended to test scale, continuity and commercial repeatability.

Canyon-4 is therefore the next major data point, followed by Canyon North-1 and Canyon North-2 and eventually one or two horizontal wells with flow testing. Those results will be important in determining how Omega’s broader resource interpretation develops.