Confirmed Gas Discovery
Report Gas Discovery with Net Reservoir and Porosity Better than Expected
Sydney, April 27, 2023 AEST (ABN Newswire) - Omega Oil and Gas Limited (
ASX:OMA) has successfully completed a Wireline Program on Canyon-2. Initial log analysis confirms hydrocarbon shows within the Kianga and upper Back Creek Group Formations.
Highlights:
- Hydrocarbon pay confirmed. Interpreted total porosities exceed initial expectations averaging greater than 9%
- Average porosity exceeds Tasmania-1
- Mud gas and cutting samples sent to lab for analysis to determine Hydrocarbon composition.
- Production casing successfully run-in-hole and cemented. The rig was released from Canyon 2 on the Saturday 22nd April. The well was completed safely, ahead of schedule and under the pre-drill budget.
- Canyon 1 on track to spud prior to mid-May.
Summary
The Canyon-2 well was drilled to a total depth of 3807m on 11th April 2023. Since the last report wireline logging operations have been successfully completed and the well cased and suspended for future completion and flow testing. The rig was released from Canyon 2 on Saturday 22nd April.
The wireline logs acquired confirms that the series of hydrocarbon charged sands and coals previously reported is consistent with the mud logs. Gamma ray and Density Neutron logging confirms the presence of Permian deep coals.
The preliminary view is the target formations are feasible hydraulic stimulation targets which aligns with pre-drill expectations. Following on from our previous report, Omega intends to apply the data from Canyon 2 along with existing completion and production data from surrounding wells such as Shell's Tasmania 1 and Daydream 1, to inform the design of the stimulation program and enhance chances of success.
Initial Petrophysical Analysis
Initial analysis of the wireline logs confirms the presence of hydrocarbons within the Kianga and upper Back Creek Group Formations consistent with mud logs. Results to date have exceeded expectations with initial log porosities averaging greater than 9%. Wireline logs have also confirmed the presence of coal throughout both the Kianga and upper Back Creek Group Formations. These coal packages will be considered as a potential target for future completion activities along with the adjacent Permian Sandstones. Further lab analysis will be completed on mud gas and cutting samples over the coming weeks to better understand formation lithology and hydrocarbon composition, the results of this work will be integrated into the overall petrophysical and geomechanical assessment to inform final hydraulic stimulation design.
Omega's Managing Director Lauren Bennett commented:
"The results continue to be encouraging and better than expected. Petrophysical analysis on the open-hole logging data confirm porosities which are better than those encountered by BG in Tasmania-1.
"Based on these results, we are excited about the prospectivity of Canyon 1, where we expect the Kianga formation to be similar to that encountered in Canyon 2.
"The Omega team has executed its plan for the Canyon-2 well effectively and safely, ahead of schedule and under the pre-drill budget. This work has added to our knowledge of the play and place Omega in a position to advance its project with this new data point that will be tested in the near future."
Forward Plan
Analysis on hydrocarbon composition, including gas-to-liquids ratio, is currently underway. It is anticipated these results will be available in the next fortnight.
The rig is currently being mobilised to Canyon-1 where it is expected that the well will be spudded before mid-May.
We are targeting an update to our resource size on the basis of this success in the near future.
About Omega Oil and Gas Limited
Omega Oil and Gas Limited's (ASX:OMA) vision is to become a leader in supporting Australia's future energy demands by realising value in Australia's immense gas assets.
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