Omega Oil and Gas (ASX: $OMA) Announcement

Omega Oil and Gas Limited (ASX: $OMA) has received approval for Potential Commercial Areas (PCA's) 342 and 343 over its 100% held Canyon Gas Project area in the Taroom Trough. The PCA's cover the entire areas of Authority to Prospect (ATP) 2037 and ATP 2038, securing all the gross contingent gas resource independently assessed by Netherland, Sewell & Associates, Inc. (NSAI) on 23 October 2023. The designation of PCA's provides valuable tenure security and certainty for Omega, supporting its planned investment to de-risk the highly prospective, multi-TCF, deep gas play in the Southern Taroom Trough.

Executive Commentary

This designation of PCA's over the Canyon Gas Project area provides valuable tenure security and certainty for Omega and removes any relinquishment requirement for a period of 15 years from the declaration date. Designation of PCA's supports Omega Oil and Gas' planned investment to de-risk the highly prospective, multi-TCF, deep gas play in the Southern Taroom Trough. This decision from the Queensland Government demonstrates the significance of the Taroom Trough for future gas supply and underscores Omega's strong technical and financial capability. Omega is now focused on drilling and flow-testing the Canyon-1H well, commencing in late August, as an important first test of the commerciality of the play. The Canyon-1H well will apply modern horizontal drilling and multi-stage stimulation technology to this exciting play. Learnings from the Canyon-1H well will be a significant step forward in accessing the vast quantities of gas contained within the Southern Taroom Trough. Commercial production from the Southern Taroom Trough will be a game-changer for the East Coast Gas Market, given forecasts by AEMO predicting substantial and persistent supply deficits from 2027.

Summary

Omega Oil and Gas Limited (ASX: $OMA) has successfully secured Potential Commercial Areas (PCA's) 342 and 343 over its 100% held Canyon Gas Project area in the Taroom Trough. The designation of PCA's provides valuable tenure security and certainty for Omega, supporting its planned investment to de-risk the highly prospective, multi-TCF, deep gas play in the Southern Taroom Trough. The decision from the Queensland Government underscores the significance of the Taroom Trough for future gas supply and highlights Omega's strong technical and financial capability. Omega's focus on drilling and flow-testing the Canyon-1H well, commencing in late August, marks an important step in evaluating the commercial potential of the play. The successful commercial production from the Southern Taroom Trough could significantly impact the East Coast Gas Market, especially in light of forecasts predicting substantial and persistent supply deficits from 2027.