Omega mobilization begins in Australia
Mobilization of the Ensign Rig #965 to the Canyon-1H project in Australia’s Bowen Basin commenced on 6 September following release from the Shell QGC Tight Gas Sands (TGS) project, announced Omega Oil and Gas, the 100% holder of Potential Commercial Area (PCA) 342 and PCA 343 (the Canyon Gas Field project).
Following successful rig mobilization and acceptance, the Canyon-1H well is anticipated to spud on approximately 20 September 2024.
Ensign #965 rig is an ADR-1500 model rig with a hook load of 750,000 lbs. This model rig has a proven track record of drilling wells of similar depths throughout Australia. Rig #965 has the capacity to drill beyond the planned total depth of Canyon-1H with spare operational capability, should it be required.
Ensign Rig #965’s equipment, crew and integrated drilling services from Halliburton will arrive “warm” after completing three similar horizontal wells nearby for Shell. This is an important and deliberate risk mitigation strategy for the Canyon-1H Project.
It is planned to drill a 600-1,100 m horizontal section (depending on hole conditions). After analyzing and integrating the results of the well and finalizing the completion design, Omega plans to complete a multi-stage hydraulic fracture stimulation, flowback and production test. The Canyon-1H horizontal well aims to test whether a potential economic flow rate can be achieved from the highly prospective Canyon Sandstone at the base of the Permian Kianga Formation.
The thick, attractive Permian sequence that extends across the entire area of Omega’s Canyon gas field project comprises the Canyon Sandstone, together with other sandstones identified by Omega (informally named the Tasmania and Cabawin Sandstones of the upper Kianga Formation).
A horizontal well provides a vastly greater reservoir surface area for testing than a vertical well, thus giving the selected reservoir interval the best chance to flow at a potentially commercial rate. This approach also allows Omega to obtain early appraisal data, enabling rapid progress toward the further appraisal and development of the field.
