• SLB modelling indicates 10 year EUR of ~0.95MMBOE or 5.72BCF of gas from a single 2,000m horizontal well
• Up to 418 horizontal wells could be accommodated within Omega's acreage
• Canyon-2 DFIT results confirm highly overpressured Canyon Sandstone reservoir

Omega Oil & Gas Ltd has provided an update on the commercial potential of its 100% owned Canyon oil and gas project. SLB reservoir modelling, based on data from the Canyon-1H flow test and petrophysical analysis, indicates a 10 year Estimated Ultimate Recovery (EUR) of ~0.95MMBOE or 5.72BCF of gas equivalent from a single 2,000m horizontal development well with an optimised fracture stimulation design, spaced at 1,000m. The modelling assumed a Canyon Sandstone net pay thickness of 7.3m, as encountered in the Canyon-1 vertical well. Omega's 100% owned PCA area could accommodate up to 418 horizontal wells of 2,000m lateral length, with 1,000m well spacing. The modelled EUR for the Canyon Sandstone compares favourably with average EUR's of analogous US basins. Cased hole wireline logging in the Canyon-2 well, located 15.7km south of Canyon-1, has confirmed the presence of five stacked reservoir intervals containing oil and/or gas, with a net pay in the Canyon Sandstone of 23.4m. A Diagnostic Fracture Injection Test (DFIT) in the Canyon-2 well recorded a reservoir pressure gradient of 0.72 psi/ft in the Canyon Sandstone interval, very high by industry standards and only slightly lower than the 0.79 psi/ft recorded in the Canyon-1H DFIT. The high overpressure is a key success factor in analogous, unconventional basin-centred gas and oil plays. Omega's forward work program will aim to delineate the extent of the play fairway and determine how the play characteristics vary across its acreage position, including the potential for stacked pay in multiple reservoir levels.

Omega's future work program will seek to delineate the areas of highest reservoir quality and further define the scale of this exciting, emerging oil and gas province. The company is actively pursuing the creation of additional value via partnering and potentially selling down selected areas of its 100% owned acreage position, and is considering options such as early-stage oil production to deliver near term cashflow, and growing its acreage position by farm in, M&A or bid round tender.