Gas explorer confirms two major Queensland discoveries

Wed 31 May 23, 10:57am (AEST)
Gas energy pipeline 1
Source: iStock

Key Points

  • Management has “achieved objectives, exceeded expectations”
  • Two gas-rich zones confirmed at Canyon-1 and Canyon-2
  • Next steps include design and delivery of hydraulic stimulation for horizontal wells

Omega Oil & Gas (ASX: OMA) has ticked off a successful drilling campaign that marked two major gas discoveries in the Surat Basin in Queensland – which seeks to derisk a prospective 3 trillion cubic feet of gas and 233 million barrels of oil.

“The objectives of the campaign were twofold – demonstrate the presence of hydrocarbon-rich zones in our acreage, and of hydrocarbon-bearing reservoir suitable for hydraulic stimulation,” said Omega’s Managing Director Lauren Bennett.

“We achieved these objectives and exceeded our expectations.”

Done and dusted

In less than six weeks, Omega confirmed gas-rich zones at both the Canyon-1 and Canyon-2 wells. In summary:

  • Canyon-1 – Drilled to a total depth of 4,000 metres and intersected 424 metres of gas-rich zones

  • Canyon-2 – Drilled to a total depth of 3,807 metres and intersected 293 metres of gas-rich zones

  • Kianga Formation – Both the above wells targeted this formation and intersected significant intervals of gas-bearing sandstones and gas shows

The final leg of the drilling campaign involved the acquisition of wireline logs for Canyon-1. This refers to a set of measurements that determine the physical properties of the rock and fluid within the well.

Wireline logs: In plain English 

There were two key data points from the wireline logs.

Net pay refers to  the thickness of a reservoir rock interval that is capable of producing economically viable quantities of gas.

“The preliminary petrophysical analysis has identified 110m of net pay in Canyon 2, and 83m of net pay in Canyon 1 based on industry-standard cut-off for tight gas plays,” the company said in a statement.

As well as the porosity, which refers to the amount of empty space in a rock (as gas can only be stored in the empty spaces). A rock with a higher porosity percentage will have more empty space, and therefore more potential to store gas.

“Log porosities range between 7 – 9% across both wells and average gas saturation ranges between 52 – 60%.”

Next steps

Omega is working with specialist engineers to analyse all the data acquired from Canyon-1 and 2.

“The forward program will now focus on designing and delivering the hydraulic stimulation and firming up our plans to drill horizontal wells to better understand the commercial prospectivity of the play,” says Bennett. 

DisclaimerMarket 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.

Written By

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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