- Canyon-2 intersected 293m of gas shows within the Kianga Formation and upper
- Canyon-2 intersections correlate with historical discoveries including
- Associated liquid hydrocarbons present in the Kianga Formation and upper Back Creek.
- Evidence of overpressure encountered while drilling through the
- Kianga Formation is 221m thick, all of which is gas charged.
- Drilling phase of Canyon-2 currently tracking ahead of schedule. Rig preparing to run wireline logs prior to casing and suspending the well for future completion and flow testing.
Summary
The Canyon-2 well was spudded on
Omega will be applying the data from the well and will utilise existing completion and production data from surrounding wells to inform the design of the stimulation program and enhance chances of success.
The Kianga Formation is the primary target of the current exploration program and was intersected at 3367m. Gas while drilling was recorded over the entire 221m interval of the Kianga Formation.
Encouraging gas shows continued into the upper
Even though the well TD was extended, Canyon-2 was drilled ahead of schedule.
Canyon-2 confirms the continuation of the Kianga and upper
Omega's Managing Director
"We are very excited with these results, and they are an excellent start to our
"The Omega team has executed its plan for the Canyon-2 well effectively and safely, adding to our knowledge of the play and placing Omega in a position to advance its project with this new data point that will also be cased and tested in the near future.
"The strong presence of gas over the sandstones and coals of the Kianga Formation and the upper
"Given the forecast gas supply shortages, finding and developing new sources of unencumbered gas is critical. Omega's proximity to well established QLD gas infrastructure and the clear requirement for more gas in the major population centres to feed industry, places Omega in a favourable position to build on this exploration success and the company looks forward to further de-risking a potential 3-TCF* of prospective gas resource."
1. Operational Update
The well reached a total depth of 3807m on the 11th of April. At the time of the release of this announcement open hole logs were being acquired. There are three logging runs planned for this well, and at the completion of the logging the well will be cased and cemented for future completion.
It is anticipated the rig will commence mobilising to Canyon-1 as early as the 17th of April.
2.
Seismic is a principal tool to map out the distribution, thickness and character (such as coal signature) of the geologic formations. Figure 2 shows the interpretation of the seismic packages of the Kianga Formation and the upper
This line and the interpretation of the geological horizons demonstrate the connection between Canyon-2 and
The prognosed reservoir section in proposed Canyon-1 is expected to be similar to that seen in
Estimates of potential resource size are not yet defined, with the formation evaluation program still in progress. Gas chromatograph compositions recorded show a high concentration of methane in the upper Kianga gas column which shows increasing gas wetness (liquid hydrocarbons) deeper in the column. Over a 30m interval hydrocarbon shows of up to 50% fluorescence and cut were recorded, indicating the presence of at least some liquid hydrocarbons.
The formations are over-pressured as expected, though probably to a greater extent than predicted. Evidence for the over-pressure encountered at Canyon-2 has been the need to raise mud weight significantly to reduce the occurrence of reservoir fluid swabbed in when making connections of new drill pipe.
The deep coal play has not been tested in the
3. Forward Plan
Finalise running wireline logs and case and suspend the well for future completion, hydraulic stimulation and production testing.
Once the casing is cemented in place in Canyon-2, the rig will relocate to Canyon-1. The Canyon1 well location has been chosen in an area between Canyon-2 and
We are targeting an update to our resource size on the basis of this success in the near future.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/UH7W7J4Q
About
Contact:
Managing Director
Phone +61 2 9199 9625
Lauren.bennett@omegaoilandgas.com.au
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