Omega Oil & Gas (ASX:OMA) is set to launch an expanded multi-well drilling program in the Taroom Trough for 2026/27, securing a premium Helmerich & Payne FlexRig.
Mobilisation of the **FlexRig 648 - **known for its capability in extended-reach horizontal drilling - is slated for May 2026, with results anticipated from mid-2026.
The upcoming drilling program is fully funded, with approximately 54 million AUD available to Omega Oil & Gas.
Plans include a minimum of four wells: two in PCA areas and another two within ATP 2081, with Omega to fund 45 percent of the costs associated with the ATP 2081 wells.
The rig contract includes three firm wells and an additional six optional wells, providing flexibility for the campaign.
De-risking Significant Resource Potential
The expanded drill program is strategically designed to de-risk and mature Omega's substantial resource potential in the Taroom Trough.
The Canyon Project currently holds contingent resources ranging from 0.4 to 4.5 TCFE (1C-3C).
An SLB study suggests an Estimated Ultimate Recovery (EUR) of approximately 0.95 MMBOE for a single 2,000m horizontal well in the Canyon Sandstone.
Previous Acreage and Funding
This new program follows the recent award of 750 square kilometres of Taroom Trough acreage (PLR2025-1-9) to a joint venture including Omega, Tri-Star, and Beach Energy (ASX: BPT).
The additional acreage expands Omega's total operated footprint in the Taroom Trough to 5041 square kilometres.
This includes the company's 14.6 million AUD investment in Elixir Energy (ASX: EXR).
Robust liquidity has been established through previous capital raises, with 54 million AUD in total funding available for the upcoming program including anticipated R&D refunds.
Key Investor Risks
A prerequisite for the expanded drilling program involves securing necessary permitting and approvals.
Investors should consider the execution risk inherent in a large-scale drilling campaign, particularly in converting contingent resources into proven reserves.
The company's operations are also subject to potential volatility in commodity prices, which can influence project economics.
Omega Oil & Gas has significantly advanced its Taroom Trough development plans by securing a premium rig and full funding for an aggressive drilling schedule.
The upcoming multi-well campaign is critical for de-risking its substantial resource potential and is expected to be a key catalyst for the company in 2026/27.
