Highlights

• Omega Oil & Gas has outlined its strategy to progress the Taroom Trough as a potential basin-scale unconventional oil and gas play.

• The company said it has access to A$110 million in funds, including A$50 million cash available at 31 March 2026.

• Omega has confirmed the first two vertical appraisal well locations, Canyon-3 and Canyon-4, with H&P FlexRig 648 expected to mobilise to Canyon-3 in early July 2026.

• The 2026/27 appraisal program is designed to de-risk the play, demonstrate scale and mature resources and reserves.

Omega Oil & Gas Ltd (ASX:OMA) has released an investor presentation outlining its plans to progress the Taroom Trough in Queensland as a potential basin-scale unconventional oil and gas opportunity. The company described the play as being at the early stage of its lifecycle, with its strategy focused on appraisal drilling, technical de-risking, production testing and resource maturation.

Omega shares traded at AUD 0.60 during the afternoon session on 25 June 2026, down 0.83% for the day. Despite the modest decline in Thursday trade, the stock remains up 122.22% over the past year, reflecting broader investor interest in the company’s Taroom Trough position and upcoming appraisal activity.

About Omega Oil & Gas

Omega Oil & Gas is an Australian exploration company focused on unlocking oil and gas resources in Queensland’s Taroom Trough. The company’s core asset is the Canyon Project, where it holds a 100% operated interest across PCAs 342 and 343, covering 1,046 square kilometres. It also operates Canyon North ATP 2081 with a 45% interest, representing 750 square kilometres on a gross basis and 338 square kilometres on a net basis.

In addition to its operated acreage, Omega holds a 19.07% shareholding in Elixir Energy, giving it beneficial exposure to ATPs 2044, 2056, 2057 and 2077. Across its operated and beneficial interests, Omega has exposure to 5,041 square kilometres gross and 1,815 square kilometres net in the Taroom Trough.

The company is targeting oil and gas resources within Permian reservoirs and has positioned its acreage near existing infrastructure and potential demand centres. Its strategy is based on applying techniques used in US unconventional developments, including horizontal drilling and multi-stage fracture stimulation.

Fully Funded Program Supports Next Appraisal Phase

A key focus of Omega’s update is its funding position following the A$60 million capital raise completed in April 2026. The company said it now has access to A$110 million, comprising A$50 million in cash available at 31 March 2026 and the April capital raise proceeds.

Omega also stated that it has no debt. According to the company, this funding position is sufficient to fully fund the 2026/27 appraisal program and provide working capital.

The funding update is important because the next phase of activity is expected to include four vertical wells and one or two horizontal wells, subject to land access, approvals and well results. Omega’s stated objective is to use this program to de-risk the subsurface, demonstrate resource scale and deliver production-ready horizontal wells based on US industry design standards.

Canyon-3 and Canyon-4 Locations Confirmed

Omega has confirmed the first two vertical appraisal well locations for its upcoming program: Canyon-3 and Canyon-4.

Canyon-3 is designed to test the proven Permian section between Canyon-1H and the Cabawin Oil Field. The company said this area provides a focus zone for potential resource booking across more than 200 square kilometres.

The success criteria for Canyon-3 include confirming that the same reservoir layers exist across multiple wells, establishing that reservoir properties are suitable for horizontal development and using drilling and wireline data to confirm oil and gas saturation. Omega also wants to confirm elevated reservoir pressure, which it described as a key factor supporting higher flow rates in unconventional plays.

Canyon-4 and two additional vertical wells are planned to test the northern extent of the Permian play. These vertical wells are expected to help Omega better define reservoir continuity before selecting the location or locations for horizontal wells.

H&P FlexRig 648 is expected to mobilise to the Canyon-3 location in early July 2026.

Horizontal Wells Central to Development Case

Omega’s planned horizontal wells are intended to test whether the Taroom Trough can support development-scale production.

The company is targeting horizontal sections of around 2,000 metres, which it said approaches US Permian development well design. Omega also plans to secure wells with 5.5-inch casing to full depth, enabling more effective fracture stimulation compared with smaller casing designs.

The horizontal wells are expected to use multi-stage fracture stimulation, the same broad technique used to develop US unconventional reservoirs. Omega has also flagged production testing for up to six months to assess sustained flow rates.

The company said its Canyon Project appraisal program has three main objectives: de-risking the play, demonstrating play extent and repeatable commercial flow rates, and maturing resources and reserves.

Past Results Opened the Play

Omega’s update also reviewed results from its earlier Canyon-1 and Canyon-1H work program.

The company said Canyon-1 helped demonstrate reservoir continuity between Canyon-2, located around 16 kilometres south, and Tasmania-1, located around 24 kilometres north. The Canyon-1H horizontal well included 822 metres of horizontal drilling and 650 metres of flow testing.

Omega stated that Canyon-1H demonstrated flows of 49.5-degree API oil and gas. The peak flow from uncompleted 4.5-inch casing was 452 barrels of oil per day and 0.6 million standard cubic feet per day of gas. Normalised to a 2,000-metre horizontal section, Omega reported the result as 987 barrels of oil per day and 1.45 million standard cubic feet per day.

The company said the test also highlighted several areas for future optimisation, including longer horizontal sections, larger casing diameter and improved fracture stimulation design for both oil-bearing and gas-bearing reservoirs.

Resource Base and Reservoir Upside Remain Key Focus

Omega’s Canyon Project has independently assessed contingent resources across its eastern flank position. The company reported 1C resources of 0.4 trillion cubic feet equivalent, 2C resources of 1.7 trillion cubic feet equivalent and 3C resources of 4.5 trillion cubic feet equivalent.

The company also highlighted that five regionally correlated reservoirs have been confirmed. To date, only one reservoir has been tested by a horizontal well and modelled in the Canyon Sandstone, leaving four untested reservoirs as additional upside areas.

Omega referenced SLB estimated ultimate recovery modelling for a single Canyon Sandstone layer, with a 10-year estimate of 5.72 billion cubic feet, or approximately 0.95 million barrels of oil equivalent, from a 2,000-metre horizontal development well at 1,000-metre spacing. The company also noted the potential for 418 horizontal wells within the PCA area.

Omega’s current estimate of petroleum reserves is nil.

Canyon North Extends the Opportunity

The company said Canyon North, or ATP 2081, increases the Permian fairway to the north of the Canyon Project.

Omega described more than 40 kilometres of favourable geology extending northwards from the Canyon Project into the adjacent acreage. The company also said the interval is continuous, overpressured and contains gas and oil-bearing Permian geology.

The award of ATP 2081 in February 2026 is listed as one of the recent developments supporting the company’s Taroom Trough position.

Government-Led Development Planning Begins

Omega also highlighted progress at a broader basin level.

On 1 June 2026, the Queensland Office of the Co-Ordinator General convened the first Taroom Trough Development Plan meeting. Participants included Taroom Trough operators, joint venture partners, infrastructure providers, local councils and other stakeholders.

Omega described the meeting as a step toward establishing a development pathway under a government-led framework.

The company also linked the Taroom Trough opportunity to Australia’s energy security needs, pointing to structurally short domestic gas and liquid fuel markets. Omega noted that around 90% of liquid fuels are imported and said government, industry and other stakeholders are increasingly recognising new domestic supply from the Taroom Trough as a potential strategic solution.

Infrastructure and Market Access Remain Part of the Plan

Location is another focus area in Omega’s update.

The company said the Taroom Trough resource is positioned close to existing infrastructure, industry and demand centres. For oil, short-to-medium-term options include trucking small volumes by road to the Eromanga refinery operated by iOR, about 800 kilometres away, though capacity is constrained at around 1,250 barrels of oil per day.

Omega also noted potential options such as truck load-in facilities or oil trains using existing trainline access to Lytton. Longer-term oil options include a pipeline to the Lytton refinery, which is currently an import terminal, or a potential new regional refinery.

For gas, short-term options include beneficial use or flaring on site. Longer-term development would require gas processing to remove liquids, with the Roma to Brisbane pipeline running along the northern edge of the acreage.

Upcoming Catalysts Over the Next 12 Months

Omega outlined several potential milestones over the next year.

The company commenced civil works for its first well location in May 2026. In July 2026, Elixir’s Lorelle-3H 30-day production test is expected to provide read-through value from the western flank of the Taroom Trough. Omega has a 19.07% beneficial interest in Elixir.

Also in July 2026, Omega expects to mobilise H&P FlexRig 648 to Canyon-3. The upgraded program is scheduled to begin in July 2026, subject to land access and well results, and includes four vertical wells plus one or two horizontal wells.

Omega has also flagged a contingent resource and reserves upgrade in the fourth quarter of 2026. In the first half of 2027, the company expects to commence stimulation and six-month flow testing of the first horizontal well, aimed at providing evidence of development-scale flow rates.

What This Means for Investors

Omega’s update is centred on technical validation and staged appraisal rather than near-term production revenue. The company is funded for its 2026/27 program, has no debt and is preparing to begin the next phase of drilling at Canyon-3 and Canyon-4.

The main investor focus is likely to remain on whether the company can confirm reservoir continuity, demonstrate repeatable flow rates and mature contingent resources toward reserves. The upcoming vertical wells, planned horizontal wells, Elixir’s Lorelle-3H production test and potential resource update in late 2026 represent the key disclosed milestones.

For now, Omega has presented the Taroom Trough as an early-stage but large-scale opportunity, with future value dependent on appraisal outcomes, flow testing, development planning and access to infrastructure and capital.