Omega Oil and Gas Ignites Bowen Basin With Breakthrough Oil Discovery at Canyon-1H

Key Highlights:

• Canyon-1H well delivers peak flow rates of 452 BOPD and 0.6 MMSCFD of gas
• Light oil discovery (49.5 API) confirms dual oil-gas commercialisation potential
• Results comparable to top-tier US unconventional plays

A Material Oil Discovery Positions Omega as Dual-Path Energy Contender

Omega Oil and Gas Ltd (ASX: OMA) has taken a significant leap forward in its quest to unlock Queensland’s energy potential, following the successful flow test of its Canyon-1H well in the Bowen Basin. The results not only surpassed expectations for gas production but revealed a commercial-scale oil opportunity—positioning Omega as a dual-threat explorer with near-term development upside.

Originally designed to validate a gas play, the Canyon-1H horizontal well struck high-quality light crude (49.5 API), delivering peak flow rates of 452 barrels of oil per day (BOPD) and 0.6 million standard cubic feet per day (MMSCFD) of gas from a 650m lateral section. On a sustained 24-hour basis, the well produced 321 BOPD and 0.472 MMSCFD, equating to 987 BOPD and 1.45 MMSCFD when modelled for future 2,000m lateral development wells.

Importantly, these figures stack up impressively against high-performing US shale analogues. Independent analysts, including Revo Testing Technologies, likened the performance to some of the most prolific unconventional liquid-rich basins in the United States.

“This is a transformational result,” said Omega CEO Trevor Brown. “We’ve uncovered a large-scale oil play sitting above our already-proven gas targets. The flow test confirms strong production potential and gives us two clear commercialisation pathways from the same footprint.”

Commercial Potential Accelerates Path to Development

The Canyon-1H program has done more than just demonstrate flow rates—it has validated reservoir quality, pressure behaviour, and the potential for rapid commercialisation. Over the 9-day flow period, the well produced 1,987 barrels of oil and 4.2 MMSCF of gas, with negligible CO₂ and minimal impurities, underscoring the quality of the resource.

Crucially, the well achieved oil and gas to surface within the first day of flowback—a strong signal of reservoir deliverability. Wellhead pressure remained high throughout testing, with rapid pressure build-up post-shut-in, reinforcing favourable reservoir conditions.

The discovery now redefines Omega’s strategic position in the Taroom Trough. What began as a gas-focused campaign has evolved into a dual oil-gas opportunity across a stacked pay system. The Canyon Project, part of the company’s 100%-owned ATP 2037 and ATP 2038 permits, covers over 250,000 acres within reach of major infrastructure.

Looking ahead, Omega is planning a multi-well program in 2H25 to further delineate and de-risk both gas and liquids plays. Resource updates—including potential liquids bookings—are also on the horizon, while partnering discussions are advancing with parties interested in accelerating development.

Despite a recent dip in share price to $0.39 (-11.36% on the day), Omega has delivered a staggering +178.57% return over the past year, with investors clearly responding to the strategic value emerging from its Bowen Basin assets.