The S&P/ASX 200 Energy Index (ASX: XEJ) is leaping 0.82% today but this ASX oil and gas share is soaring far higher.
The Omega Oil & Gas Ltd (ASX: OMA) share price soared 53.8% from 19.5 cents to 30 cents today before slightly pulling back. At the time of writing, Omega's shares are soaring 41% to 27.5 cents.
Let's take a look at why this ASX oil and gas share is having such a top run.
Image source: Getty Images
What's going on?
Omega shares are rising today after the company reported "outstanding exploration success" in the Bowen Basin, Queensland.
Drilling at the canyon-2 well intersected 293 metres of gas and liquid hydrocarbon shows within the Kianga formation and upper Back Creek Group.
The well has reached a total depth of 3807 metres. Gas covered the entire length of the 221 thick Kianga Formation. The Kianga formation is the primary target of exploration, while the Back Creek Group is the secondary target.
Omega said the results are "extremely positive" and "exceeded expectations".
Commenting on the news, managing director Lauren Bennett said:
We are very excited with these results, and they are an excellent start to our Basin-centered gas drilling campaign.
Given the forecast gas supply shortages, finding and developing new sources of unencumbered gas is critical.
The company said drilling at Canyon-2 is ahead of schedule.
Omega first listed on the ASX in October 2022. Drilling of the canyon-2 well started on 19 March 2023.
Omega share price snapshot
The Omega share price has risen 37.5% in the last year and nearly 62% in the last month.
For perspective, the ASX 200 Energy Index has returned nearly 7% in the last year.
This ASX oil and gas share has a market cap of about $42 million based on the current share price.
