Omega Oil & Gas (ASX:OMA) has capitalised on "strong institutional demand" to raise $60 million, exceeding initial expectations for its latest capital raising.
The placement, backed by major existing shareholders including the Flannery family and Tri-Star Group, provides a financial foundation for an upgraded 2026/27 drilling programme at the company’s Taroom Trough assets in Queensland.
The capital injection is set to fund a shift toward high-impact, "US-style" horizontal well designs.
The wells will feature 2,000-metre lateral sections and larger-diameter casing, a strategic move designed to demonstrate commercial flow potential and align with global industry standards.
While well construction costs are expected to increase, the company maintains that these expenses will be offset by substantially improved production outcomes and de-risked appraisal.
The project is benefiting from regulatory momentum, having been designated a "Prescribed Project" by the Queensland Government.
The status allows the Office of the Coordinator-General to streamline approvals and infrastructure development, effectively compressing the timeline toward first production.
Omega’s strategic acreage position, located near existing infrastructure, further strengthens its pathway to market.
The company plans to initiate a comprehensive stimulation and six-month flow testing programme to validate development-scale performance.
At the time of reporting, Omega Oil & Gas’ share price was $0.96.