Omega Sees Successful Fracking at Canyon-1H

Omega Oil and Gas (ASX: OMA) is working on unlocking the commercial potential of Queensland’s Bowen Basin, successfully completing the fracture stimulation of its Canyon-1H horizontal well.

With positive early signs from initial flowback testing, the company is moving closer to demonstrating the viability of its deep gas assets in the Taroom Trough.

Driling rig and land preparations at the Canyon 1H Horizontal Well.

A Key Breakthrough for Omega

The completion of the fracture stimulation program—executed by global oilfield services giant Halliburton—marks a critical milestone. Conducted on schedule, the program saw all planned stages executed with 100% proppant placement, signalling a strong reservoir response. The next phase, an extended 30-day flow testing program, is now underway to assess the productivity and commercial viability of the Canyon Sandstone formation.

Positive Early Indicators

During the initial clean-up phase of the flow test, gas and condensate flows have already been observed at the surface. If sustained, these early indications could confirm the commercial feasibility of Omega’s Canyon field, strengthening its position in Australia’s evolving gas landscape.

Market Implications and Strategic Positioning

Omega’s success at Canyon-1H could have broader implications for the Australian energy market. With the Taroom Trough emerging as a potential new gas frontier, the company is well-positioned to capitalize on growing domestic and international demand. Backed by prominent resource investors and leveraging its deep technical expertise, Omega’s exploration success at Canyon-1H and its broader acreage portfolio could translate into significant shareholder value.

As the flow testing phase progresses, investors will be watching closely for further updates on reservoir performance and potential gas reserves.

The Bowen Basin and Taroom Trough

The Bowen Basin is one of Australia’s most prolific hydrocarbon provinces, spanning approximately 200,000 square kilometres across Queensland and northern New South Wales. Known for its extensive coal and gas resources, it has been a major contributor to Australia’s energy sector for decades.

Within this basin, the Taroom Trough represents an emerging deep gas frontier, holding significant untapped potential. Characterized by deep Permian-age formations, the region is attracting increasing interest from explorers like Omega, who are leveraging advanced drilling and stimulation technologies to potentially unlock gas reserves.