Omega Oil and Gas Unveils High-Impact Oil Discovery in Bowen Basin

About Omega Oil and Gas Limited

Omega Oil and Gas Limited (ASX: OMA), founded in 2020 and headquartered in Brisbane, Queensland, is an Australian exploration company focused on unlocking the deep gas and oil potential in the Taroom Trough, part of Queensland’s Bowen Basin. With a nimble and highly experienced team, Omega has already made two major gas discoveries and is now accelerating development across its wholly owned Potential Commercial Areas (PCAs) 342 and 343. The company is backed by some of Australia’s most prominent resource investors and aims to play a central role in meeting the country’s future energy needs. Currently, the company’s shares are trading at $0.40.

Strong Oil Flows Confirm Commercial Potential

The Canyon-1H well, designed initially as a gas test, has surprised to the upside with high volumes of light crude oil flowing from the Canyon Sandstone reservoir. During testing, the well delivered a peak flow rate of 452 barrels of oil per day (BOPD) and 0.6 million standard cubic feet per day (MMSCFD) of associated gas. A 24-hour sustained flow achieved 321 BOPD and 0.472 MMSCFD, with the well producing oil to surface from the first day.

Importantly, these results were achieved from a 650m lateral section. When adjusted to a full development length of 2,000m, Omega projects that similar wells could yield up to 987 BOPD and 1.45 MMSCFD, equivalent to 1,228 barrels of oil equivalent per day (BOEPD). This positions the asset among the most productive unconventional wells in Australia and in line with top-tier US shale oil plays.

Laboratory testing confirms the oil has an API gravity of 49.5—considered a premium light crude—comparable to other high-value oil fields in the region such as Moonie and Cabawin.

High-Quality Reservoir and Positive Technical Indicators

The Canyon-1H well benefits from high reservoir pressure and favourable formation characteristics, enabling a shorter test window to generate sufficient data. During a 9-day flow period, the well-produced nearly 2,000 barrels of oil and over 4 million cubic feet of gas, alongside the recovery of frac fluids.

Post-test analysis shows negligible CO₂ and other impurities in the produced hydrocarbons, with strong pressure build-up rates indicating robust reservoir health. These factors contribute to the confidence in the commercial viability of the oil discovery and support further development planning.

Omega’s use of horizontal drilling and multi-stage fracture stimulation—techniques widely employed in North America—has proven successful and demonstrates the company’s operational capability and technical leadership.

A Major Oil Discovery in a Strategic Location

The discovery marks a significant shift in the company’s resource portfolio. While the Canyon Project was initially targeted as a large-scale gas play, the strong oil flows confirm a second commercialisation pathway for Omega. The company now plans to fast-track further work on both gas and oil components of the project.

Trevor Brown, CEO and Managing Director, stated, “Producing oil from this well test provides huge upside to our pre-drill position. Omega’s Canyon project now has two very attractive commercialisation pathways to be further appraised.”

Industry expert Darryl Tompkins, Chief Technology Officer of US-based Revo Testing Technologies, noted that the Canyon-1H performance mirrors trends seen in the most prolific unconventional oil basins in the United States, underlining the strategic importance of the discovery.

Next Steps and Development Outlook

The Canyon-1H well is now shut-in to monitor pressure build-up, and the company is analysing the collected data to model well decline curves, ultimate recoveries, and determine the next phase of appraisal and development. Omega’s forward plan includes confirming the commerciality of the oil discovery through further technical analysis, booking a resource estimate—including liquids—in the second half of 2025, and designing a broader delineation and de-risking program for both gas and oil zones. The company also intends to advance discussions with potential development partners to support future production initiatives.

These next steps aim to accelerate Omega’s transition from exploration to commercial development. The dual hydrocarbon discovery opens new funding and commercial avenues, including near-term oil monetisation and longer-term gas infrastructure investment.

With an exceptional result from a short horizontal section, a clean hydrocarbon stream, and multiple stacked pay zones across its acreage, Omega Oil and Gas has significantly upgraded the commercial potential of its Bowen Basin assets and is well-positioned to become a key player in Australia’s future oil and gas landscape.