Omega Oil and Gas (ASX:OMA) has begun civil works at its Canyon Project in Queensland’s Taroom Trough.
The project scope involves preparing well pads for Omega’s 2026/27 drilling program at mining tenements PCA 342, PCA 343, and ATP 2081.
This campaign will examine reservoir properties, fluid distribution across multiple reservoir layers, and both cost and efficiency benefits of a continuous campaign.
Four vertical wells and either one or two horizontal wells, spanning 2km in lateral length with a “US-style” well design using 5.5-inch (13.97cm) production casing, will be assessed.
Each vertical well will be designed to allow future drilling of a new horizontal section. Horizontal well locations will be confirmed after data is reviewed from the vertical wells.
The most attractive areas, also known as “sweet spots”, will be identified across the entire acreage footprint. Essential data will be provided for an upgraded resource and reserves assessment at a later date.
Land access activities for the first well locations are underway.
Activities will also appraise the extent of five major reservoir intervals across the company’s extensive acreage position.
Previous drilling and testing has produced “encouraging results”, according to the company.
“The commencement of civil construction activities marks the first step in a defining drilling program for Omega, converting months of intensive planning and preparation into practical delivery, [and] Omega’s 2026/27 drilling program is another important step in progressing the Canyon Project and ATP 2081 toward commercial development,” CEO and Managing Director Trevor Brown says.
“Omega’s ‘US-style’ well design is intended to accelerate appraisal of our Taroom Trough acreage as rapidly as possible toward development, aligned with the Queensland Government’s Taroom Trough development plan.”
The program is scheduled to begin at the end of June 2026 and will evaluate the project’s petroleum system’s productivity, reservoir characteristics, and commercial potential.
Omega expects drilling operations to start towards the latter half of June 2026, following another drilling program by a different operator.
Omega Oil and Gas is a dynamic Australian deep oil and gas exploration company with assets in Queensland’s Taroom Trough within the Bowen Basin region.
Write to Richard Szabo at Mining.com.au
Images: Omega Oil and Gas
