Omega Oil and Gas advised that SLB Land Rig 185 has successfully commenced drilling the Canyon-2 well at 0430 hours on 19th March 2023. The Canyon-2 well will be drilled to an approximate depth of 3600 metres. The well is planned to be cased, prior to completion later this year.

The SLB Land Rig 185 will then be mobilised to the Canyon-1 well pad, to drill a well of similar dimensions. Omega will complete mudlogging and open-hole wireline logs to better understand and characterise reservoir conditions at depth. This information will be key to finalising completion designs and to execute a fracture stimulation program later in the year.

The two Canyon wells are the centrepiece of Omega's Permian Deep Gas exploration program. The goal of the wells is to prove the prospectivity of the Kianga Formation and coals in the Permian aged rocks of the Bowen Basin. The Kianga Formation is the primary target.

The Backcreek Group is the secondary target and may be intersected depending on hole conditions and drilling progress. Omega believes the Kianga Formation is gas-charged in what is regarded as a basin centred gas play. If successful, Omega hopes to further de-risk its prospective gas resource of 3TCF and 233mmbbls of associated liquids.