Omega Oil and Gas (ASX:OMA) announces spudding of Canyon-1H horizontal well

Omega Oil and Gas Limited (ASX:OMA) has announced the spudding of the Canyon-1H horizontal well on 21 September 2024. The drilling program, expected to take 3 to 4 weeks, aims to test whether a potentially economic flow rate can be achieved from the highly prospective Canyon Sandstone at the base of the Permian Kianga Formation.

Executive Commentary

Omega's CEO and Managing Director, Trevor Brown, expressed the company's pleasure in announcing the spudding of the Canyon-1H well. He highlighted the significance of the well in testing the potential for achieving a significant new gas supply for Eastern Australia. Brown also emphasized the preparedness of the Omega team, Ensign rig crew, and Halliburton's Drilling Services teams for this important phase of the Canyon Gas Project.

Summary

Omega Oil and Gas Limited (ASX:OMA) has initiated the drilling of the Canyon-1H horizontal well, aiming to assess the potential for achieving a significant new gas supply for Eastern Australia. The company plans to conduct a multi-stage hydraulic fracture stimulation, flowback, and well testing program following the completion of the drilling. The success of the Canyon-1H well could mark a substantial advancement in commercializing urgently needed gas supplies for the region. Omega's ambitions to tap into the highly prospective Canyon Sandstone at the base of the Permian Kianga Formation reflect its strategic focus on contributing to the gas resources in Southern Queensland.