HIGHLIGHTS
Extensive Acreage Position with Strong, Fast-Moving Joint Venture Partners
- Following a competitive tender process, the Queensland Government has awarded a large, new land area in the Taroom Trough to an Omega-led joint venture comprising Omega Oil and Gas Limited (Omega) 45% and Operator, Tri-Star E&P Ltd (Tri-Star) 30%, and Beach Energy Limited (Beach) 25% (ASX:BPT)
- The new land area covers 750 square kilometres and lies immediately north of Omega’s existing Potentially Commercial Areas (PCAs) that cover 1,046 square kilometres, significantly expanding our operated acreage position over the prime, highly prospective eastern flank of the Taroom Trough (Figure 1)
- All gas produced from PLR2025-1-9 is designated to be sold into the domestic market
- Omega, Tri-Star and Beach acknowledge the Queensland Government for its proactive approach to unlock new oil and gas supply as vital for improving Australia’s energy security and reducing domestic gas prices
- Omega now has a commanding position in the Taroom Trough through the combination of its existing PCA’s, its 19.43% interest in Elixir Energy (ASX:EXR) and the award of PLR2025-1-9. This gives Omega an acreage interest in 5,041 square kilometres – the largest in the basin
- This award, the first under Omega’s AMI with Tri-Star and Beach marks both Beach’s entry into the Taroom Trough, and Tri-Star taking a 30% working interest in the award block in addition to its equity shareholding in Omega
- This award, to Omega, Beach and Tri-Star combines companies with complementary technical expertise, balance sheet strength, execution capability and a shared focus on accelerated exploration and appraisal to bring oil and gas to market as rapidly as possible
- Omega will immediately commence preparatory work to incorporate drilling on PLR2025-1-9 within an expanded 2026/27 drilling program
- Results from Omega’s successful Canyon wells, combined with existing seismic (Figure 2) and well data from Tasmania-1 (previously drilled on PLR2025-1-9), provides high confidence that the very favourable geologic conditions demonstrated in Omega’s PCA areas extend into PLR2025-1-9. This enables the joint venture to plan drilling operations as early as H2 2026, as soon as requisite permits and agreements have been completed
- Omega is currently finalising a contract for Helmerich & Payne (Australia) Pty Ltd (H&P) FlexRig 648 and plans to drill at least 4 wells in our extensive 2026/27 program - a minimum of 2 on our current PCA areas and 2 on PLR2025-1-9, realising the cost and efficiency benefits of a continuous campaign
- Omega is well funded for a four well program with access to approximately $54 million inclusive of expected R&D refunds. Omega will fund 45% of costs in PLR2025-1-9
Trevor Brown, Omega’s Chief Executive Officer and Managing Director, commented:
'Omega is an agile, well-funded, highly capable, Queensland-based explorer focussed entirely on unlocking the resource potential of the Taroom Trough. The newly awarded acreage area is contiguous with our existing Canyon Project area, in a geologic province we understand well, situated close to existing infrastructure. Our entire operated acreage position is within a proven, prolific hydrocarbon system with enormous upside potential for both oil and gas. Early indications are that the Taroom Trough may be host to internationally significant volumes of oil and gas and it shares many geological characteristics with the most prolific, unconventional producing basins in the USA. We’ve built Omega to move fast, and this award gives us a clear runway to rapidly appraise the area and create significant value.'
'We thank the Queensland Government for releasing new acreage in the Taroom Trough to deliver much-needed new gas supply to the East Coast market and new oil to meet Australia’s need for liquid fuels.'
'We are pleased to be working alongside high-quality partners, Tri-Star and Beach Energy to rapidly determine the resource potential of our attractive new award area.'
Andrew Hackwood, Tri-Star’s Chief Executive Officer - Australia, added:
'Tri-Star is very pleased to partner with Omega and Beach Energy on PLR2025-1-9. This joint venture is well positioned to move quickly and accelerate exploration and appraisal. As a pioneer of Australia’s CSG-to-LNG industry, Tri-Star sees the Taroom Trough as a potential next major source of domestic oil and gas, and we commend the Queensland Government for its leadership in supporting increased East Coast gas supply.'
Brett Woods, Beach Energy’s Chief Executive Officer, added further:
'Beach Energy is excited to partner with Omega and Tri-Star in the Taroom Trough, an area we believe has the potential to become a meaningful new source of domestic oil and gas supply. We look forward to applying our expertise to accelerate exploration and appraisal and unlock value from these stacked Permian reservoirs.'
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Source: OMEGA OIL AND GAS
