From drilling success to a gas discovery: Omega confirms hydrocarbons at Canyon-2

Thu 27 Apr 23, 10:55am (AEST)
Drilling Rig Sunset Panorama
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Key Points

  • Omega Oil and Gas made a confirmed gas discovery at Canyon-2 well in Queensland
  • Wireline logs confirmed presence of hydrocarbons and coal, exceeding expectations
  • The Canyon-2 well has been cased and the drill rig mobilised for the nearby Canyon-1 prospect

Omega Oil and Gas (ASX: OMA) has transformed 'outstanding exploration success' into a confirmed gas discovery at its Canyon-2 well in Queensland.

Drilling at the Canyon-2 exploration well intersected 293 metres of gas and associated hydrocarbons less than two weeks ago. The result exceeded management expectations and hit a 'ticker gas column than initially forecast'.

On Thursday, Omega said initial analysis of wireline logs confirmed the presence of hydrocarbon shows within the Kianga and upper Back Creek Group formations.

Wireline logging involves lowering tools into the well to measure properties such as porosity and permeability of rock formations and fluids. The data collected can be used to determine the location and extent of the oil and gas reservoirs.

A better-than-expected gas discovery

The wireline logs confirmed the presence of hydrocarbons, consistent with previous mud logging results.

"Results to date have exceeded expectations with initial log porosities averaging greater than 9%," said Omega Oil and Gas Managing Director Lauren Bennett.

The results also demonstrated the presence of coal throughout the Kianga and upper Back Creek Group, which is another characteristic for potential gas reservoirs. The company said the coal packages will be considered as a 'potential target for future completion activities’.

"The results continue to be encouraging and better than expected. Petrophysical analysis on the open-hole logging data confirm porosities which are better than those encountered by BG in Tasmania-1," Bennett said.

"This work has added to our knowledge of the play and placed Omega in a position to advance its project with this new data point that will be tested in the near future.”

Next steps

The Canyon-2 well has been successfully cased and suspended for future completion and flow testing. The results for hydrocarbon composition analysis is expected to be 'available in the next fortnight'.

The drill rig used for Canyon-2 is now being mobilised for the nearby Canyon-1 prospect, which seeks to counter the same attributes as Kianga and upper Back Creek.

The Canyon-1 well is expected to be spudded before mid-May.

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DISCLAIMER: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Omega Oil & Gas was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.


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Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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