.png)
Omega Oil and Gas, a Brisbane-based exploration company listed on the Australian Securities Exchange (ASX: OMA), has initiated drilling operations at its Canyon-1H well in the Taroom Trough, Queensland on 21 September 2024. This region, situated around 140 km southeast of Brisbane, has become a hotspot for gas exploration, especially after Shell’s nearby discovery sparked excitement about untapped resources. With its eyes set on the Taroom Trough, Omega will become a leading supplier in Australia’s energy market.
Omega’s Canyon-1H well is targeting an voluminous 4.5 trillion cubic feet (Tcf) of gas in the form of contingent resources. But what does that mean? In the energy industry, '2C' refers to the best estimate of contingent resources, which are quantities of gas that are potentially recoverable but need further development to be commercially viable. In this case, Omega estimates a 2C resource of 1.73 Tcf, meaning this amount of gas is likely available under optimal conditions. Horizontal drilling will allow Omega to tap into the Permian Canyon Sandstone, a rock formation known for its gas potential, by drilling sideways up to 1100m—covering more ground than traditional methods and increasing chances of accessing these resources.
Halliburton's Global Expertise
Omega has partnered with Halliburton, a global leader in oilfield services with over a century of experience, to bring expertise and technology to the Canyon-1H project. Halliburton will assist with complex drilling tasks, making Omega's ambitious project more viable. They’ll be using Ensign Rig #965, one of Australia’s most capable rigs, to access gas in challenging rock formations. This combination of advanced technology and expert knowledge increases Omega's chances of success in this exploration.
Australia’s east coast is facing a serious gas supply challenge. Prices have averaged $AUD 14 per gigajoule (GJ) over the past three years, with shortages expected to worsen by 2027. To put this in perspective, gas prices in the United States have been around $3-4 per GJ during the same period, while Europe’s average hovered between $7-10 per GJ before the recent energy crisis. This means Australian consumers and industries are paying substantially more for gas than some of the world's largest economies. If the supply continues to shrink, already high costs could spike further, impacting everything from electricity bills to manufacturing costs.The success of Omega’s Canyon-1H well could help secure much-needed gas supply, easing market pressures and supporting industries and households alike. Omega's recent $6.5 million capital raise demonstrates investor confidence and provides the financial backing needed to pursue this vital exploration.
Could Omega Secure Australia’s Energy Future?
With the potential to unlock 4.5 Tcf of gas, Omega’s Canyon-1H well could be a turning point for Australia's energy landscape. Their cutting-edge drilling techniques, collaboration with Halliburton, and strategic position in Queensland’s Taroom Trough make this project more than just another drilling operation—it's a chance to significantly impact Australia’s energy supply. Will Omega's efforts help secure Australia's gas future and stabilise the market in the coming years? The outcome of this ambitious exploration could be the answer the nation is waiting for.
