Omega Oil & Gas (ASX:OMA) said its Canyon-4 appraisal well in Queensland intersected a 589-meter gross oil and gas-bearing Permian sequence containing 197 meters of aggregate net pay, the highest result encountered in any Canyon well to date, according to a Monday filing with the Australian bourse.

Canyon-4 intersected both the Lower Kianga Formation, confirming a high-quality and regionally extensive reservoir interval, and the Tinowon Sandstone, equivalent to the gas condensate-bearing interval on the western flank of the Taroom Trough, per the filing.

Gas ratios and petrophysical analysis indicate oil across the majority of reservoir intervals, the company said, adding that the roughly 400-square kilometer area centered on the Canyon wells drilled to date could support around 160 horizontal well locations.

Additionally, the average porosity in the primary Canyon Sandstone target has increased to 12.1% at Canyon-4 from 7.4% at Canyon-1.

Omega said it is targeting an upgraded oil and gas resource assessment by the first quarter of 2027.

The company's shares closed 13% higher on Monday.