Highlights

  • Omega Oil & Gas reported a 589-metre gross hydrocarbon-bearing sequence at its Canyon-4 appraisal well.
  • Aggregate net pay reached 197 metres, exceeding the reported results from Canyon-1 and Canyon-3.
  • Average porosity in the primary Canyon Sandstone target increased to 12.1%.
  • The company is progressing further appraisal drilling, with an updated resource assessment targeted for Q1 CY2027.

Omega Oil & Gas (ASX:OMA), an Australian energy exploration company focused on oil and gas resources in Queensland's Taroom Trough, reported its strongest Canyon well results to date on 12 October 2026. The Canyon-4 appraisal well delivered increased hydrocarbon-bearing thickness and improved reservoir characteristics compared with earlier wells in the company's eastern Taroom Trough acreage.

The results provide additional geological information for Omega's ongoing evaluation of multiple stacked Permian reservoirs. However, further drilling and flow testing are required to establish commercial production potential.

Canyon-4 Records Thickest Hydrocarbon-Bearing Sequence

Omega Oil & Gas (ASX:OMA) reported that Canyon-4 encountered a 589-metre gross oil and gas-bearing sequence, including 197 metres of aggregate net pay measured in true vertical thickness. The results exceeded the company's earlier Canyon wells. Canyon-1 encountered a 433-metre gross sequence with 132 metres of net pay, while Canyon-3 intersected 526 metres of gross hydrocarbon-bearing intervals containing 170 metres of net pay. These comparisons demonstrate increasing identified reservoir thickness across the appraisal locations. However, the earlier Canyon wells did not penetrate the entire Permian sequence, limiting direct comparisons of total reservoir thickness. Canyon-4 reached a measured total depth of approximately 4,017 metres, extending into basement rock beneath the target formations. The well provided additional geological information about the distribution of oil and gas across multiple Permian reservoir intervals.

Reservoir Porosity Improves at Canyon Sandstone

One of the significant outcomes from Canyon-4 was the improvement in average porosity within the primary Canyon Sandstone target.

Omega Oil & Gas (ASX:OMA) reported average porosity of 12.1%, compared with 7.4% at Canyon-1 and 11.5% at Canyon-3.

Porosity measures the proportion of pore space within reservoir rock that can potentially contain hydrocarbons.

Higher porosity can indicate greater storage capacity within the rock formation. However, it does not independently establish the ability of hydrocarbons to flow at commercially viable rates.

Reservoir permeability, pressure, fluid characteristics and completion design also influence production performance.

The Canyon-4 results provide evidence of favourable reservoir characteristics but require further technical evaluation before commercial conclusions can be established.

Core Samples Provide Further Geological Information

Canyon-4 was drilled approximately eight kilometres south of Canyon-3 and around 100 metres structurally up-dip.

The location was selected to assess reservoir continuity, thickness and hydrocarbon distribution across the company's appraisal area.

Omega Oil & Gas (ASX:OMA) recovered approximately 111 metres of core from multiple reservoir intervals.

The physical samples will support laboratory investigations into reservoir characteristics, mineral composition and fluid-bearing properties.

The drilling also intersected several stacked reservoir intervals, including the Lower Kianga Formation and Tinowon Sandstone.

These results provide additional information about the geological extent of the Permian petroleum system.

However, the reported net-pay measurements remain based on petrophysical interpretations and do not represent proved reserves or confirmed recoverable production volumes.

Further Appraisal Targets Eastern Taroom Trough

Omega Oil & Gas (ASX:OMA) is undertaking its FY27 appraisal program across the Canyon Project and adjoining exploration acreage.

The program is designed to investigate the continuity of oil and gas-bearing formations and identify suitable locations for future horizontal wells.

Omega holds 100% interests in PCA 342 and PCA 343, which form the core of its Canyon Project in Queensland.

The company's broader appraisal strategy includes vertical drilling, reservoir analysis and horizontal well testing.

The proposed horizontal wells are intended to evaluate the productivity of selected reservoir intervals following hydraulic stimulation.

Results from these activities will help determine whether reservoir characteristics observed in vertical wells can translate into sustainable hydrocarbon flow.

Canyon North Drilling and Resource Assessment Remain in Focus

Following Canyon-4, Omega Oil & Gas (ASX:OMA) plans to continue appraisal activities through the Canyon North drilling program.

The next phase is intended to evaluate the northern extension of the Permian reservoir system within ATP 2081.

Omega operates ATP 2081 with a 45% working interest, providing exposure to additional exploration acreage beyond the wholly owned Canyon Project.

The company has outlined plans for further vertical drilling and potential horizontal appraisal wells as part of the FY27 program.

Information collected from Canyon-4 and subsequent wells is expected to contribute to an updated resource assessment targeted for Q1 CY2027.

The assessment will incorporate additional geological and reservoir data to refine estimates of the hydrocarbon resources identified across the project.

However, any future resource changes will depend on technical interpretation, reservoir continuity and the classification requirements applicable to petroleum resources.

Key Insights

Omega Oil & Gas (ASX:OMA) reported its strongest Canyon well results on 12 October 2026, with Canyon-4 delivering increased net pay and improved porosity relative to earlier appraisal wells.

The results provide further evidence of hydrocarbons across multiple reservoir intervals in Queensland's Taroom Trough.

Nevertheless, reservoir quality alone does not establish commercial viability.

As of 12 October 2026, the company's next development milestones include additional Canyon North drilling, laboratory analysis, horizontal flow testing and an updated resource assessment.

These activities will provide further information about the potential scale and productivity of the project.