Few Australian gas exploration companies drill this deep. Omega Oil & Gas just did. On 13 November 2026, it said Canyon North-1 had reached a total depth of 4,700m measured depth (MD) in the basement. No Queensland well has gone deeper. The company also reported the highest gas shows it has recorded to date.
Canyon North-1 is the first well for the ATP 2081 Joint Venture. Omega holds 45% and operates. Tri-Star holds 30%. Beach Energy holds 25%. The target is the Taroom Trough, an emerging producing province within the Bowen Basin. The crew drilled with H&P FlexRig 648.
The gas arrived while crews drilled the Muggleton Formation. It flowed into the wellbore. At the surface, it was separated from the drilling fluid and flared in a controlled manner. The rock had not been stimulated, and that detail matters. CEO and Managing Director Trevor Brown said influx at these levels strengthens his conviction in a very large, regionally extensive petroleum system.
Why Australian Gas Exploration Companies Are Watching This Well
Depth is only part of the story. Pressure is the other part. Pressures met in the well are consistent with the high pore pressures from the Canyon-1H DFIT. That earlier test confirmed significant overpressure in the Canyon Sandstone.
Crews also logged high gas shows in the Lower Kianga Formation and the Canyon Sandstone. Brown said the Canyon-4 results add to a growing body of evidence across Omega’s acreage.
Omega is careful about the flare. It is a drilling observation only. No flow rates have been measured. The company says it should not be read as a guide to future flow rates or commercial productivity. That caution is worth keeping in mind.
Rock samples obtained from basement at 4,700m. [Omega Oil & Gas]
Why the Joint Venture Kept Drilling Past 4,000m
The original plan was a depth of about 4,000m MD. The partners chose to continue. They wanted to fully penetrate the Muggleton Formation. Canyon-4 helped drive that call.
It sits in Omega’s 100%-owned PCA 342, and its results were released on 12 October 2026. High gas shows from deeper in Canyon North-1 added support. The extra drilling took longer than first indicated. Brown said the decision has proven successful.
Gas kept entering the wellbore after total depth was reached. Crews continued flaring it at the surface. Operations now focus on preparing the well for safe wireline logging. That suite will span the entire Permian sequence.
Key Takeaways From Queensland’s Deepest Well
Here is what the update confirms so far:
- Canyon North-1 reached 4,700m MD in basement, the deepest well ever drilled in Queensland.
- Drilling was first planned to about 4,000m MD before the partners extended it.
- High gas shows appeared in the Lower Kianga Formation and the Canyon Sandstone.
- Gas from the unstimulated Muggleton Formation was flared in a controlled manner.
- The reservoir is highly over-pressured, in line with earlier Canyon-1H results.
- No flow rates have been measured.
What Happens Next at the Taroom Trough Gas Project
The Taroom Trough gas project now moves into evaluation. Omega has set out an indicative timeline:
- Wireline logging will cover the Canyon Sandstone and Lower Kianga Formation.
- If gas levels cannot be cut enough, the lower section will be plugged. The Muggleton Formation would be isolated. Logging would then cover the other five regionally extensive reservoir levels.
- Canyon North-1 results will be released once logging and evaluation are complete.
- Canyon North-2 follows immediately, with drilling in 4Q 2026.
- Core analysis results will feed geological assessments during 4Q 2026 and 1Q 2027.
- An upgraded resource assessment is targeted for 1Q 2027.
- At least one, and possibly two, horizontal appraisal wells will follow. Laterals could reach 2,000m. Flow testing is slated for 1H 2027, subject to well results and Joint Venture approval.
Who Is Behind This Queensland Gas Exploration Push
Three partners share the project. Each brings a different record:
- Omega Oil & Gas (ASX: OMA) focuses solely on the Taroom Trough. Its Canyon-1H well revealed substantial oil and gas flows.
- Tri-Star E&P is a family-owned group. It drilled Queensland’s first commercial coal seam gas well, which ultimately supported the $80 billion CSG to LNG industry.
- Beach Energy (ASX: BPT) was founded in 1961. It produces oil, gas and natural gas liquids from five basins across Australia and New Zealand.
Brown called the coming months among the most important in Omega’s journey. Logging, Canyon North-2 and horizontal appraisal will test the thesis. Until then, the flare is an encouraging signal, not proof of commercial flow.
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Frequently Asked Questions
Q1: How deep is Canyon North-1?
A1: It reached 4,700m MD in the basement. That makes it the deepest well ever drilled in Queensland.
Q2: Who owns the ATP 2081 Joint Venture?
A2: Omega holds 45% and operates the project. Tri-Star holds 30%, and Beach Energy holds 25%.
Q3: When will the resource upgrade and flow testing happen?
A3: An upgraded resource assessment is targeted for 1Q 2027. Flow testing of horizontal wells, with laterals up to 2,000m, is planned for 1H 2027.
Q4: Why did the partners drill beyond 4,000m?
A4: They wanted to fully penetrate the Muggleton Formation, based on Canyon-4 results. Canyon North-2 follows in 4Q 2026.
Disclaimer:
This article draws on Omega Oil & Gas’s ASX announcement of 13 November 2026. The gas flare is a drilling observation only. No flow rates have been measured, and it does not indicate future productivity or commercial viability. Timelines are indicative and depend on well results and Joint Venture approval. This content is general information, not financial or investment advice.
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
