Omega Oil & Gas (ASX:OMA) Sets Out Plans For Reporting Thicker Net Pay From Its Canyon Appraisal Wells And A Larger Operated Acreage Position In

Aditi Sarkar

29 October 2026 04:01 PM AEDT

Omega Oil & Gas (ASX:OMA) Sets Out Plans For Reporting Thicker Net Pay From Its Canyon Appraisal Wells And A Larger Operated Acreage Position In

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Highlights

Canyon-4 was spudded on 7 September and reported on 12 October, after the quarter ended.
Its contingent resources are 0.4, 1.7 and 4.5 trillion cubic feet equivalent on a 1C, 2C and 3C basis, unrisked.
Net pay and porosity are not production; the programme is designed to test for repeatable commercial flow rates.
Omega holds 45 per cent and is operator, with Tri-Star on 30 per cent and Beach on 25 per cent.

Omega Oil & Gas (ASX:OMA) has used its quarterly report for the period ended 30 September 2026 to set out the results of its two latest Canyon appraisal wells, a new exploration permit and its cash position. The business states the Canyon-3 and Canyon-4 wells have so far delivered the thickest net pay in the programme, although it has not yet reported commercial flow rates from either well.

Canyon-3 And Canyon-4 Results

Canyon-3 reached a total depth of 3,792.6 metres on 15 August. Omega reports a 526-metre gross hydrocarbon-bearing interval and 170 metres of aggregate net pay across six stacked reservoirs, which it says exceeded pre-drill expectations. The Canyon Sandstone contained 18 metres of net oil-bearing pay at an average porosity of 11.5 per cent, while the Lower Kianga Sandstone was gas and condensate-bearing.

Canyon-4 was spudded on 7 September and reported on 12 October, after the quarter ended. The company describes the well as having the highest net pay in the programme to date, at 197 metres, from a 589-metre gross hydrocarbon interval. The Canyon Sandstone showed 11 metres of net pay at 12.1 per cent average porosity, which Omega describes as the best so far, and the Lower Kianga Sandstone was oil-bearing.

For comparison, the company notes that Canyon-1 recorded 12 metres of net pay in the Canyon Sandstone at 7.4 per cent porosity. The earlier Canyon-1H horizontal well flowed oil and gas to surface; on a figure normalised to a 2,000-metre lateral, Omega cites 987 barrels per day of oil and 1.45 million standard cubic feet per day of gas.

Resources And What Remains Unproven

Omega reports nil reserves. Its contingent resources are 0.4, 1.7 and 4.5 trillion cubic feet equivalent on a 1C, 2C and 3C basis, unrisked. That estimate is dated 30 September 2023 and was independently assessed by NSAI, so it pre-dates the Canyon-3 and Canyon-4 data. The company also cites SLB modelling of Canyon-1H suggesting roughly 0.95 million barrels of oil equivalent per 2,000-metre horizontal well over ten years, a figure that depends on model assumptions.

Net pay and porosity are not production; the programme is designed to test for repeatable commercial flow rates.

Acreage

ATP 2082, covering 1,138 square kilometres, was granted after quarter-end. Omega holds 45 per cent and is operator, with Tri-Star on 30 per cent and Beach on 25 per cent. The business states the grant lifts its operated acreage by 63 per cent to 2,976 square kilometres and that the permit is interpreted to continue the stacked Permian sequence. Omega also holds 100 per cent of PCA 342 and PCA 343. Its Bennett Oil Field licence, PL 17, remains suspended while a farm-down process with several industry participants continues.

Cash And Funding

Closing cash at 30 September was A$92.9 million, down from A$102.1 million at 30 June, with no debt and no financing facilities. Operating outflow was A$0.9 million, including A$1.0 million of interest received, and investing outflow was A$8.2 million, mostly exploration spending. Cash comprised A$2.5 million in bank balances and A$90.4 million in term deposits. The Appendix 5B states an estimated runway of 10.4 quarters at current spending of A$8.9 million per quarter, and the company says it is fully funded for the 2026/27 appraisal programme.

Next Steps

The 2026/27 programme comprises four vertical appraisal wells, followed by one or two horizontal wells with laterals of up to 2,000 metres, which would be fracture stimulated and flow tested. Canyon North-1 and North-2 are planned in ATP 2081, with timing and locations dependent on land access, well results and joint venture approval. Omega says Canyon-3 and Canyon-4 data are being integrated with seismic data to refine horizontal well placement.

FAQs

Q: What is the principal development covered in this update?

A: Omega Oil & Gas has used its quarterly report for the period ended 30 September 2026 to set out the results of its two latest Canyon appraisal wells, a new exploration permit and its cash position. The business states the Canyon-3 and Canyon-4 wells have so far delivered the thickest net pay in the programme, although it has not yet reported commercial flow rates from either well.

Q: What should readers watch next?

A: The 2026/27 programme comprises four vertical appraisal wells, followed by one or two horizontal wells with laterals of up to 2,000 metres, which would be fracture stimulated and flow tested.

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