Omega Oil & Gas Ltd. discovered a major oil and gas extension in eastern Taroom Trough, onshore Australia, with the first well in their 2026-27 appraisal program.  

The Canyon-3 appraisal was drilled about 9 km southeast and 275 m updip of Canyon-1 in Queensland’s south Bowen basin to evaluate the lateral extent and continuity of stacked Permian reservoir intervals, including the Canyon Sandstone, as well as to test the hydrocarbon distribution updip from Canyon-1.

The well reached a total depth of 3,792.6 m. A comprehensive suite of surface logging and wireline log data confirmed the presence of six regionally correlated oil and gas-bearing reservoirs with indications of overpressure, providing new evidence of hydrocarbon distribution updip in the east of Omega’s PCA Area in the direction of Cabawin oil field.

High-quality drilling data, surface logging, and wireline logs acquired from the well show a 526-m thick oil and gas-bearing Permian interval with 170 m of aggregate net pay. Log analysis indicates 18 m (net) oil-bearing sands were encountered with an average porosity of 11.5% within a 42-m thick (gross) Canyon Sandstone primary target.

These properties are greater than in the equivalent interval in Canyon-1, which contained 12 m (net) sand having 7.4% average porosity within a 37-m thick (gross) Canyon Sandstone reservoir interval, the company said.

The Canyon-3 results provide new data on enhanced properties in the Lower Kianga Sandstone immediately above the Canyon Sandstone, which is now interpreted as a sixth regionally extensive layer. Oil fluorescence observed in drill cuttings samples across all six reservoirs provided visual evidence of hydrocarbons, and advanced surface logging technology provided increased discrimination of hydrocarbon shows through the well.

Wireline logging and petrophysical analysis indicate continuity of the reservoirs encountered in Canyon-1 and Canyon-2, Omega said.

Canyon-3 well results add to the growing body of evidence demonstrating the continuous nature and scale of the Canyon Sandstone which previously demonstrated oil and gas flows, with Canyon-1H delivering a production rate of 987 bo/d and 1.45 MMcfd, normalized to a 2,000 m lateral.

A key objective of Omega’s 2026-27 vertical appraisal program was to establish the scale of the oil and gas resources on the eastern flank of Taroom Trough. Results from Canyon-3 indicate that the Canyon Sandstone extends at least 20 km east–west from Canyon-1 through Canyon-3 towards Cabawin oil field, while regional well data indicates continuity of the Canyon Sandstone more than 40 km north-south from Canyon 2 to Tasmania-1 within ATP 2081 and then over another 40 km northwest to Fantome-1.

Canyon-3 and Canyon-4 results will provide additional well control across an area of over 200 sq km in PCA 342 and, in combination with existing data, will support progressive expansion of Omega’s resource base.

Omega said well data from the program will enable the company to test and refine an SLB development and production model and determine the extent to which the reservoir characteristics demonstrated in previous wells persist across the broader Canyon project.

The company said Canyon-3 results improved understanding of the vertical distribution of hydrocarbons through the Permian sequence and, when combined with existing well data and seismic interpretation, will assist Omega in identifying the areas with the most favorable combination of reservoir quality, thickness, and hydrocarbon saturation.

The rig has moved to the Canyon-4 well location in PCA 342.