Horizontal drilling in Queensland next year23 Oct 2023 05:57
Came across this announcement. (I’m not invested in Omega Oil and Gas). Omega is planning for horizontal drilling next year.
https://hotcopper.com.au/threads/ann-maiden-gross-contingent-gas-resource-of-1-73-tcf.7649803/
Omega is planning to test the producibility of gas and liquids from the Kianga formation by the drilling of a horizontal well and multi-stage stimulation program. The proposed horizontal well program is currently being planned, including input from a joint Technical Working Group with Tri-Star Group.
Given that stimulated vertical wells in the Taroom Trough have to date delivered sub-commercial flow rates of gas, Omega considers a horizontal well is necessary to test whether the large volumes of gas contained within the Kianga formation can be delivered at potentially commercial flow rates. The catalyst for explosive value-growth in the US unconventional resources was the shift from vertical to horizontal wells. Early adopters and first-movers reaped the rewards. The Bowen Basin appears to be entering the early phase of that same evolution, and Omega is well- positioned to be among the first movers.
Based on the current availability of a suitable drilling rig, the results of the program are currently expected in Q3 2024. Omega will expedite the program if rig availability allows.
These activities are fully funded through the recent capital raising, and procurement has commenced to secure a drilling rig via a tender process. Applications for Research and Development incentives and for possible funding under the Queensland State Government Frontier Gas Exploration program are being considered by Omega and are potential upsides to the funding set aside for the execution of the activities.
There is significant potential to further increase contingent resources subject to the assessment of the other hydrocarbon-bearing formations that were confirmed in the Canyon drilling campaign. This will be considered in future technical assessments.
If the horizontal well and multi-stage stimulation program are successful in delivering potentially commercial flow rates, Omega anticipates that, subject to appropriate technical and commercial assessment, a portion of contingent resources would be converted into reserves.
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