Omega Oil and Gas (ASX: OMA) has been awarded a large new land parcel in Queensland’s Taroom Trough, extending its operated position over the basin’s eastern flank and setting up what the company is pitching as a major 2026/27 drilling campaign.
The Queensland Government granted the 750 sq km block (PLR2025-1-9) to an Omega-led joint venture with Tri-Star E&P and Beach Energy following a competitive tender process. Omega will hold 45% and operatorship, with Tri-Star on 30% and Beach on 25%.
Permit interest map.
Any gas produced from the permit is designated for the domestic market.
The award area sits immediately north of Omega’s existing Potentially Commercial Areas in the Taroom Trough, which cover 1,046 sq km, and is intended to expand the company’s operated footprint over what it describes as the “prime” eastern flank play.
Omega said its combined position — including its PCA areas, its 19.43% interest in Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) and the new permit — gives it an acreage interest of 5,041 sq km, which it described as the largest in the basin.
Chief executive and managing director Trevor Brown said the new acreage was contiguous with the company’s Canyon project area and close to infrastructure, positioning the JV to scale activity in the basin.
“Omega is an agile, well-funded, highly capable, Queensland-based explorer focussed entirely on unlocking the resource potential of the Taroom Trough. The newly awarded acreage area is contiguous with our existing Canyon Project area, in a geologic province we understand well, situated close to existing infrastructure. Our entire operated acreage position is within a proven, prolific hydrocarbon system with enormous upside potential for both oil and gas. Early indications are that the Taroom Trough may be host to internationally significant volumes of oil and gas and it shares many geological characteristics with the most prolific, unconventional producing basins in the USA. We’ve built Omega to move fast, and this award gives us a clear runway to rapidly appraise the area and create significant value.
“We thank the Queensland Government for releasing new acreage in the Taroom Trough to deliver much-needed new gas supply to the East Coast market and new oil to meet Australia’s need for liquid fuels.
“We are pleased to be working alongside high-quality partners, Tri-Star and Beach Energy to rapidly determine the resource potential of our attractive new award area.”
Drilling targeted from H2 2026 as approvals progress
Omega will begin preparatory work to incorporate PLR2025-1-9 into an expanded 2026/27 drilling program, with drilling planned as early as the second half of 2026, subject to permitting and agreements.
The company flagged a campaign of at least four wells across 2026/27 — at least two on its existing PCA areas and two on PLR2025-1-9 — aimed at capturing cost and efficiency benefits from a continuous program.
The company is finalising a contract for Helmerich & Payne (Australia) FlexRig 648 and has signed a binding letter of intent for the rig.
Stacked Permian reservoirs in focus
Omega pointed to results from its Canyon wells, along with seismic and Tasmania-1 well data (previously drilled on the new permit), as supporting its view that favourable geology extends into PLR2025-1-9.
The company is targeting what it describes as five stacked Permian reservoir layers on the eastern flank, noting only one of the five has been tested with a horizontal well to date.
Omega also referenced SLB modelling for a single Canyon Sandstone reservoir layer, indicating a 10-year estimated ultimate recovery of about 0.95 MMBOE (around 5.72 Bcf gas equivalent) from a 2,000 m horizontal development well at 1,000 m well spacing.
Funding and indicative milestones
Omega said it is “well funded” for a four-well program with access to about $54 million, including expected R&D refunds, and will fund 45% of costs on PLR2025-1-9.
In an indicative schedule, the company flagged long-lead wellheads and casing due to arrive in early May, rig mobilisation around mid-May 2026, first drilling results around mid-2026 and updated resource-to-reserve maturation expected in late 2026.
Partners back domestic supply potential
Tri-Star E&P CEO (Australia) Andrew Hackwood said the JV was positioned to “move quickly”, describing the Taroom Trough as a potential next major source of domestic oil and gas supply.
“Tri-Star is very pleased to partner with Omega and Beach Energy on PLR2025-1-9. This joint venture is well positioned to move quickly and accelerate exploration and appraisal. As a pioneer of Australia’s CSG-to-LNG industry, Tri-Star sees the Taroom Trough as a potential next major source of domestic oil and gas, and we commend the Queensland Government for its leadership in supporting increased East Coast gas supply.”
Beach Energy CEO Brett Woods also pointed to the basin’s potential, saying Beach believes the Taroom Trough could become a “meaningful” new source of domestic oil and gas supply.
“Beach Energy is excited to partner with Omega and Tri-Star in the Taroom Trough, an area we believe has the potential to become a meaningful new source of domestic oil and gas supply. We look forward to applying our expertise to accelerate exploration and appraisal and unlock value from these stacked Permian reservoirs.”