Australian exploration company Omega Oil and Gas has announced successful flow test results from its Canyon-1H horizontal well in Queensland’s Bowen Basin.
The well, located in the Taroom Trough, demonstrated strong oil flows following a fracture stimulation programme.
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The test began on 13 March 2025 and concluded on 23 March 2025. It captured sufficient data to model long-term well performance.
The Canyon-1H well achieved peak flow rates of 452 barrels of oil per day (bopd) and 600,000 standard cubic feet per day of gas.
Future development wells are expected to have lateral lengths of 2,000m or more, optimising completion for the fluid system.
The 24-hour sustained rates for a 2,000m lateral section translate to 987bopd and 1.45 million standard cubic feet per day (mscf/d).
Expressed as a gas rate, this equates to 7.37mscf/d equivalent or 1,228 barrels of oil equivalent per day.
Laboratory tests confirmed the oil at 49.5 API (American Petroleum Institute), similar to oil from nearby fields.
Omega Oil and Gas CEO and managing director Trevor Brown said: “I am delighted to announce the outstanding results of Omega’s successful flow test of our Canyon-1H well. While we were anticipating commercial flow rates of a large-scale gas play, we have discovered an additional large-scale oil play. The primary objective of the programme has now been achieved by demonstrating what we believe will be commercial hydrocarbon flow rates from our attractive acreage area.
“Producing oil from this well test provides huge upside to our pre-drill position. Omega’s Canyon project now has two very attractive commercialisation pathways to be further appraised. To obtain such strong flow rates from a relatively short horizontal indicates that our development wells will be strong producers.
“We can already draw favourable comparisons with wells in some of the best unconventional liquids production areas in the US. The Canyon-1H drilling, fracture stimulation and flow testing programme was flawlessly and efficiently executed.”
During the nine-day flow period, the well recovered 4.186mscf of gas, 1,987 barrels of oil and 8597 barrels of water.
“The successful application of horizontal drilling and fracture stimulation technology on our project has provided an important, high-quality data set indicating that Omega’s Canyon Project Area contains an extremely exciting play of significant scale poised to play a large role in Australia’s energy future,” Brown added.
The Canyon-1H well is currently shut in, with wellhead pressure build-up being monitored. The rapid pressure build-up indicates favourable reservoir conditions.
Omega plans to use the production data to understand well decline rates and ultimate recoveries for the liquid-rich project area.
The company is developing a detailed plan for the project’s next steps, focusing on further delineation and derisking of the resource.
Key milestones include verifying liquids commerciality, resource booking in the second half of 2025, and a well programme to delineate and derisk gas and liquids plays.
Omega is also advancing discussions with interested oil and gas parties on development pathways including ongoing partnering discussions.
