Article originally published by Small Caps.

Omega Oil and Gas (ASX: OMA) has announced “outstanding” exploration success at the Canyon-2 well in Queensland’s Bowen Basin, with an intersection of 293 metres of gas and liquid hydrocarbon shows.

The well is located within the highly-prospective Kianga Formation and upper Back Creek Group and correlates with historical discoveries in the area, including Shell Australia’s Tasmania-1 gas discovery well.

Canyon-2 is also a continuation of the oil discovery well Cabawin-1, which was cased, completed and put on production from the upper part of Kianga in the 1960s.