Omega Oil & Gas Hits 197m of Net Pay at Canyon-4, Its Best Well Yet
Key Takeaways
- Canyon-4 intersected 589m gross and 197m of net pay, the best Canyon result yet, up from 132m at Canyon-1 and 170m at Canyon-3.
- Average porosity in the primary Canyon Sandstone has risen from 7.4% at Canyon-1 to 12.1% at Canyon-4, pointing to improving reservoir quality.
- Canyon Sandstone continuity is indicated over more than 40km north-south, and Omega sees about 160 horizontal well locations across 400km² of 100%-owned ground.
- No flow test was run at Canyon-4, and Omega's reserves remain nil against contingent resources of 0.4-1.7-4.5 TCFE (1C-2C-3C).
- Canyon North-1 and North-2 are due in 4Q 2026, an updated resource assessment in 1Q 2027, and flow-tested horizontal wells in 1H 2027.
Canyon-4 delivers Omega’s best Canyon result yet, with 197m of net pay
Omega Oil & Gas (ASX: OMA) has reported Canyon-4, the second vertical well in its fully funded 2026/27 appraisal program on the eastern flank of the Taroom Trough, as its best Canyon well result to date. The well intersected a 589m gross oil and gas-bearing sequence with 197m of aggregate net pay (true vertical thickness).
Net pay is the portion of a reservoir that is thick and porous enough, and holds enough hydrocarbons, to be worth producing from. Average porosity in the primary Canyon Sandstone target has risen from 7.4% at Canyon-1 to 12.1% at Canyon-4, which means more space in the rock to hold oil and gas.
Trevor Brown, CEO and Managing Director
“…Canyon-4, which delivered the thickest sequence, most net pay and highest reservoir quality of any Canyon well to date…”
Mr Brown will host a live investor webinar at 11:00am AEDT on Monday 12 October 2026. For you as an investor, the pattern matters most: each Canyon well has improved on the last, which supports the case for a continuous resource play rather than a one-off discovery.
Well-by-well comparison
The table below sets Canyon-4 against earlier wells. Canyon-1 and Canyon-3 were not drilled to basement, which is a qualifier on the comparison.
| Well | Gross interval | Net pay | Drilled to basement? |
|---|---|---|---|
| Canyon-1 | **433m** | **132m** | No |
| Canyon-3 | **526m** | **170m** | No |
| Canyon-4 | **589m** | **197m** | Yes |
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What did Canyon-4 find across the Permian?
Full Permian penetration and core
Canyon-4 reached total depth at 4,017m measured depth in basement. Omega describes it as the first modern well to penetrate the full Permian sequence on the eastern flank of the southern Taroom Trough.
The well recovered 111.2m of conventional core (94.6% recovery) across three key reservoir intervals, and a full suite of wireline logs was acquired. Wireline logs are measurements taken down the hole that reveal rock and fluid properties.
It was drilled approximately 8km south and 100m structurally updip from Canyon-3. The well was deviated 28 degrees to intersect a secondary Tinowon Sandstone target identified within the existing Sedgely 3D seismic dataset.
Reservoir breakdown
Net pay was spread across six intervals, as shown in Table 1 of the announcement.
| Interval | Gross (m) | Net pay (m) |
|---|---|---|
| Tasmania Sandstone | **25m** | **11m** |
| Burenda Sandstone | **32m** | **12m** |
| Lower Kianga Formation | **128m** | **50m** |
| Canyon Sandstone | **25m** | **11m** |
| Tinowon Formation | **124m** | **16m** |
| Muggleton Formation | **255m** | **97m** |
| Total | **589m** | **197m** |
The figures come from a provisional petrophysical interpretation, with cutoffs of total porosity 4%, volume clay 35% and water saturation 70%. Intervals are true vertical thickness.
Oil indicators
Omega pointed to several signs of oil in the well:
- Mud-gas ratios recorded while drilling indicate oil throughout key reservoir intervals.
- A strong petroliferous odour and oil fluorescence were observed in core plugs taken onsite.
- Associated gas was observed bubbling from the core at surface.
These are early indicators rather than test results. No flow testing was performed at Canyon-4.
Why do continuity and scale matter for investors?
What is a continuous resource play?
An appraisal well tests how a reservoir behaves away from earlier discoveries. A continuous resource play is one where similar rock and hydrocarbons extend across a wide area, so results can be repeated well after well.
Existing drilling and regional well control indicate Canyon Sandstone continuity over more than 40km north-south from Canyon-2 to Tasmania-1 within ATP 2081. Regional evidence extends a further approximately 40km northwest to Fantome-1.
Development potential
Omega outlined the following scale indicators:
- An area of approximately 400km² in PCA 342 and 343 (Omega 100%) centred on the Canyon wells drilled to date could support around 160 horizontal development well locations, based on 2,000m laterals at approximately 2.5km² per well.
- SLB modelling based on Canyon-1 and Canyon-1H well data indicates a 10-year estimated ultimate recovery (EUR) of ~0.95 MMBOE for a single 2,000m horizontal Canyon Sandstone well.
- Updated modelling to incorporate the Canyon-3 and Canyon-4 results is now underway.
The well count is an indicative estimate, not a reserve. Omega’s current estimate of petroleum reserves is nil, and its contingent resources are 0.4-1.7-4.5 TCFE (1C-2C-3C), not adjusted for risk.
Beyond the Canyon area, the next two vertical wells in ATP 2081 will test the extension of the play to the north. Future drilling in the recently announced 1,138km² ATP 2082 provides exposure to the interpreted continuation of the play to the southwest.
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What are the next appraisal catalysts and how is the program funded?
Omega says its fully funded appraisal program is progressing on schedule and within budget. It retains flexibility under its H&P FlexRig® 648 contract to exercise additional drilling options as operational results warrant.
| Activity | Objective | Indicative timing |
|---|---|---|
| Canyon-4 technical evaluation | Integrate core, wireline and geological data and refine reservoir model | **4Q 2026** |
| Canyon North-1 | Extend vertical appraisal campaign into ATP 2081 | **4Q 2026** |
| Canyon North-2 | Further test reservoir quality, continuity and hydrocarbon distribution across ATP 2081 | **4Q 2026** |
| Updated resource assessment | Incorporate expanded 2026/27 appraisal dataset across 100% OMA owned and JV Blocks | **1Q 2027** |
| Horizontal appraisal well(s) | Test commercial flow and reservoir performance with lateral(s) of up to 2,000m | **1H 2027** |
The rig is now moving to the Canyon North-1 location in ATP 2081. The Canyon North-2 location has been finalised, and civil works are currently underway.
The program will culminate in at least one, and potentially two, flow-tested horizontal wells with laterals of up to 2,000m. Those wells are designed to demonstrate commercial flow potential and acquire further reservoir performance data.
For you, the next markers are the Canyon North wells in 4Q 2026, the updated resource assessment in 1Q 2027 and horizontal flow testing in 1H 2027. Each will show whether the improving trend across the Canyon wells holds.
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