Omega Oil & Gas is planning substantial exploration and appraisal drilling campaigns in the onshore Taroom Trough in Queensland's Bowen basin, a major emerging unconventional gas play with multi-trillion cubic feet (Tcf) potential. This activity aims to confirm resources near the Wallumbilla gas hub and advance the commercialization of coal seam gas discoveries.

Omega's Appraisal Campaign

Omega's campaign is scheduled to start in May. It involves an appraisal drilling program on the eastern flank of the trough, comprising three firm wells and four optional wells. The company has secured the FlexRig 648 from Helmerich & Payne under a binding letter of intent, with the charter finalization expected imminently. This rig was previously used by Shell for its own Taroom Trough appraisal. The campaign will appraise five major reservoir intervals, with vertical wells designed for potential later horizontal sections. Initial drilling results are anticipated in mid-2026, with an updated resource assessment expected by year-end.

Elixir Energy's Ongoing Drilling Activity

Separately, Elixir Energy is drilling the Lorelle-3 wildcat well on the upper western flank of the Taroom Trough, approximately 10 kilometers from Shell's Dunk-1 well. This is the first well drilled outside Shell's acreage in that area. Located in ATP 2056 (50% Elixir, 50% Santos), the well's initial phase plans a total vertical depth of 3600 meters. A second phase includes a sidetrack of at least 1000 meters targeting the Dunk member of the Tinowon sands. Drilling began on 12 January and is estimated to take 55 days, with a multi-stage fracture stimulation and production test scheduled before June.

Strategic Positioning and Resources

Omega recently acquired a 19.43% equity interest in Elixir Energy for A$14.6 million, gaining exposure to Elixir's 2.6 Tcf of best-estimate contingent gas resources in the trough. Omega also appointed two directors to Elixir's board. For its own Canyon project, Omega has booked initial best-estimate contingent resources of 1.5 Tcf of gas and 69 million barrels of condensate from three wells drilled in 2023-2024. The company expects funding exceeding A$54 million for its 2026-2027 appraisal and growth program. A Final Investment Decision (FID) and facility construction are projected from 2028 onwards, pending further appraisal results.

Market and Regulatory Context

This development activity aligns with growing domestic energy security requirements in Eastern Australia and occurs within a supportive Queensland government policy environment for gas development.