Omega Oil and Gas (ASX: OMA) has secured a large new exploration block in Queensland’s Taroom Trough, expanding its presence in one of Australia’s emerging onshore petroleum provinces. The Queensland Government awarded the 750 square-kilometre area to an Omega-led joint venture after a competitive tender. Omega will hold 45% and operatorship, with Tri-Star E&P taking 30% and Beach Energy 25%. The block sits directly north of Omega’s existing Potentially Commercial Areas covering 1,046 square kilometres.
The addition lifts Omega’s total acreage interest in the basin to 5,041 square kilometres, the largest position in the Taroom Trough. All gas produced from the new permit is designated for domestic supply. Management said the award strengthens plans for a continuous multi-well campaign through 2026 and 2027.
Fast track to drilling
Omega plans to incorporate the new ground into an expanded program of at least four wells. Two are scheduled for current PCA areas and two for the new block. The company is finalising a contract for the Helmerich & Payne FlexRig 648, with mobilisation targeted for mid-May 2026.
Results from Omega’s Canyon wells and historical data from the Tasmania-1 well provide confidence that favourable geology extends into the new permit. SLB modelling of a single Canyon Sandstone layer indicated a 10-year Estimated Ultimate Recovery of about 0.95 MMBOE, or 5.72 BCF of gas equivalent, from a 2,000-metre horizontal well.
Omega said it is funded for the program with access to roughly $54 million, including expected R&D refunds. The company will fund 45% of costs on the new block. First drilling results are expected around mid-2026 with resource maturation targeted late in the year.
Partners with balance sheet muscle
Chief executive Trevor Brown said the acreage is contiguous with Omega’s Canyon Project in a province the team understands well. “Our entire operated acreage position is within a proven, prolific hydrocarbon system with enormous upside potential for both oil and gas,” Brown said. He added that early signs suggest the basin may host internationally significant volumes.
Tri-Star Australia chief Andrew Hackwood said the joint venture can move quickly on appraisal. Beach Energy chief Brett Woods described the area as a potential meaningful new source of domestic supply and said Beach would apply its technical expertise to accelerate work.
Why the basin matters?
The eastern flank of the Taroom Trough contains five stacked Permian reservoir layers across a broad area. Only one layer has been tested with a horizontal well to date. The structure compares favourably with unconventional basins in the United States and sits close to existing infrastructure.
Omega’s program aims to define reservoir quality, identify sweet spots and build a reserve base to support development decisions. The company said a continuous campaign should deliver cost efficiencies and faster learning cycles.
