Omega has signed a binding Letter of Intent with Helmerich & Payne (Australia) Drilling Pty Ltd for the provision of Rig 648, a super-spec FlexRig®, to support the company’s extensive Taroom Trough appraisal programme. The agreement marks a major milestone for Omega’s development of the Canyon Project, an emerging Permian unconventional gas and liquids play.
Under the LOI, Omega and H&P have agreed to a period of exclusivity to finalise contract terms. The proposed drilling campaign includes three firm wells and four optional wells, providing flexibility for a continuous programme as Omega seeks to further de-risk the subsurface. Rig 648, operated by personnel with extensive US unconventional drilling experience, is scheduled to commence operations for Omega in mid-May 2026 following other commitments.
The Canyon Project holds a contingent resource of 0.4–1.7–4.5 TCFE (1C–2C–3C), presenting a significant opportunity to support domestic energy security, LNG development, and what is emerging as a major new oil province on the eastern flank of the Taroom Trough. Planning for the appraisal programme is well advanced, targeting five reservoir layers with at least three vertical wells and options for multiple horizontal sections to test flow capacity and delineate the most prospective “sweet spots.” Omega has already placed orders for long-lead equipment, and with more than 70 million dollars in available funding, the company is well positioned to execute the programme.
Omega’s CEO and MD, Trevor Brown, said the LOI marks an important step forward:
“We are pleased to have signed a binding Letter of Intent with H&P, one of the pre-eminent global drilling contractors, for Rig 648. This ensures access to a state-of-the-art, high-capacity drilling rig as we further de-risk and demonstrate the scale of the Permian unconventional gas and liquids play in our Canyon Project area. With an extensive, multi-well appraisal programme scheduled to commence in May 2026, we are focused on systematically de-risking the subsurface and unlocking the significant resource potential of the Canyon Project.”
John Bell, H&P’s Executive VP, Eastern Hemisphere Land operations, added:
“We’re proud to bring H&P’s world-class drilling capabilities and technology to the Taroom Trough in collaboration with Omega. Our teams share a strong commitment to safety, performance, and innovation, and we look forward to delivering exceptional drilling outcomes that help unlock the basin’s significant gas and liquids potential.”
The upcoming appraisal programme will evaluate five reservoir intervals across Omega’s extensive acreage, providing crucial geological and engineering data for resource and reserves maturation. Vertical wells will be designed to enable follow-up horizontal drilling, which will play a key role in assessing commercial flow rates. Drilling results are expected from mid-2026, followed by an updated resource assessment in the second half of 2026.
Omega anticipates finalising the detailed forward work programme and the rig contract before the end of 2025, with the flexibility to add additional vertical or horizontal wells as the programme progresses.
For more information visit www.omegaoilandgas.com.au
