Omega Oil and Gas (ASX:OMA) is aiming to unlock new gas reserves for Australia’s eastern state markets. On 6 September 2024, mobilisation of the Ensign Rig #965 to the Canyon-1H project commenced following release from the Shell QGC Tight Gas Sands project. Following successful rig mobilisation and acceptance (approximately 14 days), the Canyon-1H well is anticipated to spud on or around 20 September 2024.
- Mobilisation of Ensign rig #965 to Omega’s Canyon-1H Project has commenced
- The Canyon-1H well is expected to spud on or around 20 September 2024
- The Canyon-1H well consists of re-entry into the existing, vertical Canyon-1 well, then drilling a horizontal well section up to 1,100m long into the Canyon Sandstone
Omega’s CEO and Managing Director, Trevor Brown, said:
“Omega is pleased to announce that mobilisation of the Ensign rig #965 to Omega’s location commenced on Friday 6 September 2024. After successfully rigging up, it is anticipated the spud of the Canyon-1H well will occur around 20September 2024. Ensign rig #965 is the right rig for Omega’s important first test of the flow capacity of the deep, tight gas sands in the Taroom Trough. It is one of the largest land rigs in Australia and well-suited to undertaking the deep, horizontal Canyon-1H well program. Omega has been patient and purposeful in deliberately contracting the most appropriate rig and drilling service providers for our job, knowing that the rig, the rig crew and associated drilling service providers are coming to us “warm” following the completion of a program of three similar horizontal wells for Shell QGC nearby in the Taroom Trough. This is a significant risk mitigation for the Canyon Gas Project.
The Taroom Trough is known to contain vast volumes of gas trapped within relatively deep, low-permeability reservoirs and is the focus of a lot of industry activity with programs currently being conducted by Omega and neighbouring Operators to test some of its exciting potential. Development of these badly needed gas volumes will almost certainly be achieved dominantly by the application of modern, horizontal drilling and fracture stimulation technologies. By applying these methods early in our appraisal campaign, Omega will maximise the chance of obtaining potentially commercial flow rates and gain valuable appraisal data that will put us on the fastest possible path toward field development.
Our dedicated and skilled team of professionals are very well-prepared for the program and are pleased to commence this important operational phase of the Canyon Gas Project”.