Omega Oil & Gas (ASX:OMA) Limited , which explores for oil and gas in Queensland's Taroom Trough, said its Canyon-4 appraisal well reached 4,017 metres measured depth and intersected a 589 metre gross hydrocarbon-bearing interval with 197 metres of aggregate net pay, the highest in the Canyon programme to date. The company reported the result, announced on 12 October 2026 after the quarter ended, in its quarterly report for the period to 30 September 2026.

Canyon-4 and Canyon-3 results

Omega said Canyon-4 began drilling on 7 September with an H&P FlexRig 648. Within the Canyon Sandstone it recorded 11 metres of net pay at 12.1 per cent average porosity, and the Lower Kianga Sandstone was oil-bearing at 10.7 per cent porosity. The company recovered 111.2 metres of core for reservoir assessment, and core analysis is continuing.

Canyon-3, which reached a total depth of 3,792.6 metres on 15 August, intersected a 526 metre gross hydrocarbon-bearing Permian interval with 170 metres of aggregate net pay across six reservoirs. The Canyon Sandstone there contained 18 metres of net oil-bearing sand at 11.5 per cent average porosity. Omega said data from both wells is still being integrated.

Appraisal programme

The planned programme involves four vertical appraisal wells, followed by one or two horizontal wells with laterals of up to 2,000 metres, then fracture stimulation and flow testing. Two further wells, Canyon North-1 and North-2 in permit ATP 2081, are pending and depend on land access, well results and joint venture approval.

The company cited a modelled figure of about 0.95 million barrels of oil equivalent for a 2,000 metre well, based on SLB modelling, and cautioned that such estimates depend on model assumptions. Omega reports no petroleum reserves and contingent resources of 0.4, 1.7 and 4.5 trillion cubic feet equivalent on 1C, 2C and 3C bases respectively, which are not risk-adjusted. These are resource estimates rather than proved production, and the company reported no production or revenue in the quarter.

The company said Canyon-3 and Canyon-4 data are still being integrated into its models, so interpretations may change.

Cash and funding

Cash at 30 September 2026 was A$92.9 million, down from A$102.1 million at 30 June. Operating outflow was A$0.88 million, investing outflow was A$8.20 million, of which A$8.02 million was exploration and evaluation, and financing outflow was A$0.02 million for lease repayments. Omega has no debt and no drawn or undrawn facilities. It estimated a funding runway of 10.4 quarters at the current rate of spending, and said it is fully funded for the 2026/27 appraisal programme, with a research and development tax incentive refund expected as potential upside.

Acreage and corporate

Omega said permit ATP 2082, covering 1,138 square kilometres, was granted, lifting operated acreage to 2,976 square kilometres, a 63 per cent increase. The joint venture over ATP 2081 and ATP 2082 is held 45 per cent by Omega as operator, 30 per cent by Tri-Star and 25 per cent by Beach Energy. The company said it was added to the S&P/ASX All Ordinaries Index with effect from 21 September 2026, and that it holds a strategic equity stake in Elixir Energy .

Operations at the Bennett Oil Field (PL 17) remain suspended while a farm-down process is under way, and the outcome of that process is uncertain. Related party payments in the quarter included about A$255,000 to directors and the chief executive and about A$126,000 to Tri-Star for exploration and evaluation.

Risks and next steps

Key uncertainties include integration of the Canyon-3 and Canyon-4 data, outstanding core analysis, the timing of the northern wells and the farm-down outcome at Bennett. The next confirmed milestones are completion of the core and data work and progress on the remaining vertical wells, followed by the horizontal well and stimulation phase.