Omega Oil & Gas has commenced drilling at Canyon North-1, the third well in its 2026/27 appraisal program and the first well in the ATP 2081 Joint Venture involving Tri-Star (30%) and Beach Energy (25%), with Omega as operator holding a 45% stake. The well represents a critical test of how far the Canyon play extends beyond Omega’s existing permitted areas, moving from focused appraisal to regional scale assessment.
The timing shows the pace of development. ATP 2081 was awarded to the Omega-led joint venture only seven months ago in March 2026, highlighting the speed at which the company is executing its exploration strategy. This rapid mobilisation follows the release of Canyon-4 results in October, which delivered Omega’s strongest well performance to date with a 589 meter gross oil and gas-bearing sequence containing 197 meters of net pay, compared with 170 meters at Canyon-3 and 132 meters at Canyon-1. Average porosity in the primary Canyon Sandstone target increased from 7.4% at the first well to 12.1% at Canyon-4, suggesting improving reservoir quality as the company understands the play better.
Canyon North-1 is positioned approximately 6 kilometers from the Tasmania-1 well drilled in 2012, and 250 meters updip of it. Tasmania-1 provides crucial offset well control, having penetrated the same Permian reservoirs targeted by the Canyon wells and cored the Canyon Sandstone. The company notes that the Canyon Sandstone demonstrates continuous geology from its existing wells through Tasmania-1 and correlates approximately 40 kilometers further northwest to Fantome-1, indicating potential for a regionally extensive resource system rather than isolated pockets.
Management expects drilling results in approximately four weeks, followed by Canyon North-2 in the fourth quarter of 2026. Core analysis from earlier wells will be incorporated into geological assessments during the final quarter of 2026 and first quarter of 2027, with an upgraded resource assessment targeted for the first quarter of 2027. Following Canyon North-2, the company plans to drill at least one horizontal appraisal well, with potential for two, featuring laterals of up to 2,000 meters and flow testing in the first half of 2027, subject to results and joint venture approval. Omega remains fully funded for its 2026/27 program.
Investors will focus on whether Canyon North-1 validates the regional extension hypothesis and reservoir continuity beyond the existing permitted areas. Strong results could underpin a larger resource base and expand the commercial potential across Omega’s eastern Taroom Trough acreage. The next three to four months will deliver multiple data points, making this a critical phase for de-risking the broader play. This announcement is price sensitive and has been flagged as material by the ASX.
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About Beach Energy Limited (ASX: BPT)
Beach Energy Limited is an oil and gas exploration and production company headquartered in Adelaide, South Australia. It produces gas, oil, and natural gas liquids from five basins across Australia and New Zealand. The company explores, develops, and transports hydrocarbons including liquified natural gas, liquified petroleum gas, condensate, and oil.
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