Article originally published by Stockhead, stockhead.com.au. Image via Getty Images.

With Australia’s East Coast facing a growing shortfall in gas supplies, the scramble is now on to secure new supplies to ensure energy security.

The Australian Competition and Consumer Commission has forecast a 56 petajoule shortfall in 2023, pinning the blame on LNG exporters based out of Gladstone, who have been net withdrawers of gas from the domestic market since 2021.

This finding had Resources and Northern Australia Minister Madeleine King firing a warning shot, by extending the Australian Domestic Gas Security Mechanism (ADGSM) to 2030 – allowing her to issue a notice of intent to make a determination to use the measure, which will restrict exports to ensure that enough gas is available for domestic use.

And while the industry’s lobby body, the Australian Petroleum Production & Exploration Association has claimed that there is enough gas for domestic supply, the findings nonetheless indicate that new sources of gas will be welcomed.

This is exactly the scenario that Omega Oil and Gas – formerly Luco Energy – is hoping to see as it moves to carry out drilling at its ATP 2037 and ATP 2038 to test a potential multi-trillion cubic feet basin-centred gas play in Queensland’s Surat Basin.

Omega is looking to raise between $12.5m and $15m through an initial public offering for a listing on the ASX with the proceeds used to fund drilling of two wells (one in each ATP) that will test the gas and liquids potential of the target Permian Kianga Formation.