Omega Oil and Gas: Successful DFIT at Canyon-1H Well Confirms High Overpressure
OMA (OMA) Share Update January 2025 Tuesday 7th
Omega Oil and Gas Announces Successful DFIT at Canyon-1H Well
Omega Oil and Gas (ASX: OMA) has announced the successful completion of a Diagnostic Fracture Injection Test (DFIT) at its Canyon-1H horizontal appraisal well in the Bowen Basin, Southern Queensland, confirming significant overpressure in the Canyon Sandstone reservoir.
Instant Summary:
- Successful DFIT executed at Canyon-1H horizontal well.
- Confirmed high overpressure of 0.79 psi/ft in Canyon Sandstone.
- Enhanced confidence for upcoming Canyon-1H well test.
- Multi-stage fracture stimulation and flowback to start end of February 2025.
DFIT Results and Implications
Omega Oil and Gas has completed a Diagnostic Fracture Injection Test (DFIT) at its Canyon-1H horizontal appraisal well, confirming high overpressure in the Canyon Sandstone reservoir. The DFIT results show a pressure of 0.79 psi/ft, indicating favorable reservoir properties that enhance confidence in the upcoming well test.
The DFIT, a standard industry technique, was conducted by injecting a small volume of fluid into the reservoir to create a fracture. This allowed Omega to analyze well pressures over 14 days, confirming higher reservoir pressure and lower geo-mechanical stress than previously expected.
Preparations for Fracture Stimulation
With the DFIT results in hand, Omega is preparing for a multi-stage fracture stimulation and flowback program at Canyon-1H, expected to commence by the end of February 2025. These operations are crucial for assessing the commercial viability of the Canyon Gas Field project.
The positive data from the DFIT, including high penetration rates and strong gas readings during drilling, suggest a high-quality reservoir. These findings are consistent with observations from the Canyon-1 vertical well and the horizontal drilling through the Canyon Sandstone.
The successful DFIT results are likely to bolster investor confidence in Omega Oil and Gas's Canyon Gas Field project. The confirmation of high overpressure is a positive indicator for potential resource development, which could enhance the company's market position and stock value.
Investor Reaction:
Analysts may view the DFIT results as a positive development for Omega, given the high overpressure and favorable reservoir properties. This could lead to increased interest in the company's stock as the market anticipates the results of the upcoming fracture stimulation program.
Conclusion:
Investors should watch for further updates from Omega Oil and Gas as the company progresses with its Canyon-1H fracture stimulation program. The successful DFIT results provide a promising outlook for the project's future development.