Omega Oil & Gas Confirms Extensive Oil and Gas System at Canyon-2, Shares Jump Nearly 12%

Key Highlights:

• Cased hole logging at Canyon-2 confirms multiple stacked oil and gas zones
• New data reveals thicker and higher-quality pay zones than Canyon-1H
• DFIT testing commences as Omega evaluates development potential
• Shares rise 11.91% to $0.235 on growing commercial confidence

Omega Oil & Gas Ltd (ASX: OMA) surged 11.91% on Thursday to trade at $0.235, after delivering a promising update from its Canyon-2 well, reinforcing the commercial potential of Queensland’s Taroom Trough petroleum system.

The company announced the successful completion of its cased hole logging program at Canyon-2, which confirmed a broad, oil-and-gas-rich petroleum system, adding to the excitement generated by earlier flow results from Canyon-1H. The latest data was gathered using high-resolution pulsed neutron logging tools, offering far superior clarity compared to earlier open-hole data compromised by drilling conditions.

Critically, Omega reported that Canyon-2—located 15.7km from Canyon-1—has demonstrated thicker and higher-quality pay zones, including new stacked reservoir intervals that were not previously identified. According to the company, these results significantly enhance the understanding of the subsurface and reduce geological risk.

A DFIT (Diagnostic Fracture Injection Test) program has now commenced, targeting multiple intervals across the Permian section. This testing phase will assess pressure gradients and geomechanical behaviour to guide development planning and validate scalability across the region.

CEO Trevor Brown stated, “The results confirm that we are dealing with a large and productive system. With cash on hand and early discussions underway with strategic investors, we’re focused on accelerating appraisal and moving toward resource conversion.”

In parallel, Omega is progressing seismic acquisition plans and evaluating drilling timelines, while also updating reservoir and economic models. Early crude tests from Canyon-1H showed exceptional quality oil—API 49.5°, well above Brent benchmark—likely commanding a pricing premium.

With a market cap of $80.6 million, Omega holds 100% of PCA 342 and 343, and its vertically integrated approach allows flexibility in development and strategic deal-making.

As global energy markets remain tight and Australia seeks new domestic supply, Omega’s Canyon Project is quickly shaping into a high-potential asset with regional significance.