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Omega Oil & Gas Limited (AU:OMA)
ASX:OMA
Australian Market

Omega Oil & Gas Limited (OMA) AI Stock Analysis

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AU:OMA

Omega Oil & Gas Limited

(Sydney:OMA)

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Neutral 51 (OpenAI - 5.2)
Rating:51Neutral
Price Target:
AU$0.47
▲(8.60% Upside)
The score is primarily held back by weak financial performance (minimal revenue, ongoing losses, and persistent cash burn), partially offset by a strong low-debt balance sheet and a moderately constructive technical setup with price above major moving averages and positive/neutral momentum signals. Valuation remains challenging due to negative earnings and no dividend support.
Positive Factors
Low leverage / strong balance sheet
Very low leverage materially reduces insolvency and refinancing risk for an exploration-stage oil and gas company. This durable strength gives management flexibility to pursue exploration, joint ventures or staged development without immediate pressure from creditors, supporting multi-quarter resilience.
Growing equity base
Material equity growth expands the firm’s funding capacity and asset backing, making it easier to support capex and attract partner capital for projects. Over months this reduces immediate dilution risk and enhances ability to execute multi-year exploration and development programs.
Low interest burden
Minimal interest expense preserves operating cash and extends runway for investment in exploration. This structural advantage allows management to allocate scarce cash to core activity rather than financing costs, improving survival odds during prolonged project timelines.
Negative Factors
Persistent negative operating and free cash flow
Consistent negative OCF and FCF signal ongoing cash burn that requires repeated external funding or asset sales. Over a multi-month horizon this elevates refinancing and dilution risk, and constrains the firm's ability to fund exploration without partner deals or fresh capital.
Minimal revenue / pre-commercial profile
A lack of meaningful revenue indicates the company remains pre-commercial, so its path to sustainable cash generation is uncertain. This structural revenue risk increases dependence on successful exploration outcomes or commodity price moves to transition to profitable operations over coming quarters.
Negative returns on equity
Negative ROE shows invested capital is not producing returns, limiting internal funding for growth and weakening investor economics. Persisting negative ROE forces reliance on external capital or strategic restructuring, which can be dilutive and impair long-term shareholder value.

Omega Oil & Gas Limited (OMA) vs. iShares MSCI Australia ETF (EWA)

Omega Oil & Gas Limited Business Overview & Revenue Model

Company DescriptionOmega Oil & Gas Limited, an energy and resources company, explores for and produces natural gas and oil. It holds two exploration permits, Authorities to Prospect 2037 and 2038; and Petroleum Lease 17, a petroleum lease in the Surat-Bowen Basin located in South-East Queensland. The company was incorporated in 2020 and is based in Sydney, Australia. Omega Oil & Gas Limited operates as a subsidiary of AJ Lucas Services Pty Ltd.
How the Company Makes MoneyOmega Oil & Gas Limited makes money through the exploration and development of oil and gas reserves, which are subsequently sold to various markets. The company's revenue model is based on the successful identification and extraction of hydrocarbons, which are then marketed and sold either directly to refineries, energy companies, or on the commodities market. Key revenue streams include the sale of crude oil and natural gas, as well as potential partnerships or joint venture agreements with other energy companies to explore and develop energy projects. The company's earnings are significantly impacted by global oil and gas prices, exploration success rates, and operational efficiencies in extracting and delivering energy resources.

Omega Oil & Gas Limited Financial Statement Overview

Summary
Balance sheet strength (very low leverage and growing equity) is a key positive, but this is outweighed by an early-stage profile with minimal revenue, persistent and sizable losses, and consistently negative operating and free cash flow indicating ongoing funding needs.
Income Statement
18
Very Negative
The company has minimal/zero revenue in most years (only a small revenue base in 2023), while losses remain sizable and persistent (net loss worsened again in 2025 vs. 2024). Profitability is structurally weak with negative gross profit in several periods and deeply negative operating results, indicating the business is still in a pre-commercial or heavy investment phase. The key positive is that losses are being funded without meaningful interest burden given very low debt levels.
Balance Sheet
72
Positive
The balance sheet is a clear strength: leverage is extremely low across the period, with debt-to-equity declining to near-zero by 2025, which reduces financial risk. Equity has grown materially from 2021 to 2025, supporting a larger asset base and providing funding flexibility. The main weakness is continued negative returns on equity, reflecting that capital is not yet generating profits.
Cash Flow
27
Negative
Cash generation is weak: operating cash flow and free cash flow are negative every year, consistent with an exploration-stage profile. Free cash burn was very heavy in 2023 and improved in 2024–2025, but it remains meaningfully negative, implying ongoing reliance on external funding. A modest positive is that free cash flow has at times been less negative than net income (e.g., 2024–2025), suggesting some non-cash expenses, but underlying cash burn persists.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue0.000.000.0078.45K0.000.00
Gross Profit-138.38K-78.70K-126.04K38.06K-32.91K0.00
EBITDA-4.03M-3.77M-2.68M-4.99M-1.94M-760.55K
Net Income-3.86M-3.86M-2.22M-5.34M-2.01M-2.09M
Balance Sheet
Total Assets53.23M53.23M42.27M25.41M19.91M3.19M
Cash, Cash Equivalents and Short-Term Investments7.83M7.83M17.28M2.16M14.88M384.59K
Total Debt28.21K28.21K65.91K227.08K2.94M0.00
Total Liabilities2.83M2.83M3.41M5.38M523.51K1.26M
Stockholders Equity50.40M50.40M38.86M20.03M19.39M1.93M
Cash Flow
Free Cash Flow-11.88M-2.54M-6.13M-17.16M-3.45M-797.79K
Operating Cash Flow-2.36M-2.36M-1.80M-4.04M-3.45M-797.79K
Investing Cash Flow-9.38B-21.80M-3.83M-15.63M0.00-3.32M
Financing Cash Flow14.71M14.71M20.76M19.51M5.39M4.63M

Omega Oil & Gas Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.43
Price Trends
50DMA
0.40
Positive
100DMA
0.41
Positive
200DMA
0.35
Positive
Market Momentum
MACD
0.01
Positive
RSI
50.58
Neutral
STOCH
35.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OMA, the sentiment is Neutral. The current price of 0.43 is below the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.40, and above the 200-day MA of 0.35, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 35.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:OMA.

Omega Oil & Gas Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
51
Neutral
AU$201.29M-35.25-8.65%-24.49%
51
Neutral
AU$4.11M-9.49%-16.79%-205.26%
45
Neutral
AU$21.08M-12.50-1.94%89.19%
44
Neutral
AU$5.12M-25.00-7.32%90.70%
43
Neutral
AU$1.96M-2.91-42.33%53.72%
37
Underperform
AU$3.14M-26.79%-26.88%24.00%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:OMA
Omega Oil & Gas Limited
0.43
0.08
21.13%
AU:BLU
Blue Energy Limited
0.01
0.00
0.00%
AU:WEL
Winchester Energy Ltd
AU:SHE
Stonehorse Energy Ltd
AU:IPB
IPB Petroleum Ltd.
0.01
0.00
0.00%
AU:KEY
Key Petroleum Limited
0.06
<0.01
16.00%

Omega Oil & Gas Limited Corporate Events

Omega Oil & Gas Announces Director’s Interest Change
Dec 4, 2025

Omega Oil & Gas Limited has announced a change in the director’s interest, specifically concerning Quentin Joseph Flannery. The notice details the indirect interests held through various entities and trusts, with changes effective from December 4, 2025. This update reflects the company’s compliance with regulatory requirements and provides transparency to stakeholders regarding the director’s financial involvement with the company.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.85 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil and Gas Expands Share Issuance to Strengthen Market Position
Dec 4, 2025

Omega Oil and Gas Limited has issued 43,870,401 fully paid ordinary shares as part of Tranche 2 of its Placement, following shareholder approval. This move reflects Omega’s strategic efforts to bolster its financial position and operational capabilities, potentially enhancing its market presence and stakeholder value in the energy sector.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.85 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil & Gas Issues New Securities on ASX
Dec 4, 2025

Omega Oil & Gas Limited has announced the issuance of 43,870,401 ordinary fully paid securities, which are set to be quoted on the Australian Securities Exchange (ASX) as of December 4, 2025. This move is part of a previously announced transaction and is expected to enhance the company’s financial flexibility, potentially impacting its market positioning and offering new opportunities for stakeholders.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.85 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil and Gas Secures Strong Shareholder Support at AGM
Nov 28, 2025

Omega Oil and Gas Limited announced that all resolutions at its Annual General Meeting were passed by poll, with the ‘Adoption of Remuneration Report’ receiving over 75% approval. This outcome reflects strong shareholder support and positions Omega to continue its strategic initiatives in the oil and gas sector.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.85 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil & Gas Limited’s Annual General Meeting Highlights
Nov 28, 2025

Omega Oil & Gas Limited held its Annual General Meeting where the CEO and Managing Director presented key updates. The presentation emphasized the company’s strategic direction and operational highlights, though it was noted that the information provided is for informational purposes only and not a solicitation for investment. The presentation also included disclaimers about the accuracy and completeness of the information, highlighting the inherent risks and uncertainties in the industry.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.85 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil & Gas Initiates Trading Halt Ahead of Major Announcement
Nov 20, 2025

Omega Oil & Gas Limited has requested a trading halt on its securities pending an announcement regarding a potential material acquisition. This move is intended to help the company manage its continuous disclosure obligations, with trading expected to resume by November 25, 2025, or upon the release of the announcement. The halt indicates a significant potential development that could impact Omega’s market position and stakeholder interests.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.84 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil & Gas Confirms 1.73 TCF Gas Resource
Nov 12, 2025

Omega Oil & Gas Limited has announced the independent verification of its contingent gas resources, totaling 1.73 trillion cubic feet, as assessed by Netherland, Sewell & Associates, Inc. This verification strengthens Omega’s resource base and positions the company favorably in the energy market, potentially impacting its future operations and stakeholder interests.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.84 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil & Gas Secures Drilling Rig for Major Canyon Project
Nov 11, 2025

Omega Oil & Gas Limited has signed a binding Letter of Intent with Helmerich & Payne (Australia) Drilling Pty Ltd for the provision of Rig 648 for its Taroom Trough appraisal program. This agreement marks a significant step in Omega’s Canyon Project, which targets unlocking substantial gas and liquids resources in the Permian unconventional play. The program, set to commence in mid-May 2026, aims to de-risk the subsurface and demonstrate the scale of the resource potential. With a strong balance sheet and strategic shareholders, Omega is well-positioned to deliver sustainable growth and long-term shareholder value.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.64 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil & Gas Limited Announces Quotation of New Securities
Nov 9, 2025

Omega Oil & Gas Limited announced the quotation of 160,000 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its capital structure and potentially improve its market positioning, offering stakeholders an opportunity to engage with the company’s growth trajectory.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.64 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil & Gas Secures Funding and Confirms Canyon Project Potential
Oct 31, 2025

Omega Oil & Gas Limited has announced a successful $46 million equity placement, bolstering its financial position with over $70 million available for its upcoming appraisal program set to begin in Q2 2026. The Canyon Project’s commercial potential has been confirmed through reservoir modeling by SLB, indicating significant gas recovery and revenue potential per well. The company plans to advance its appraisal program across multiple reservoir targets, positioning itself for a dynamic growth phase over the next 12 to 18 months. This development aligns with the Queensland Government’s energy roadmap, emphasizing the importance of domestic gas supply.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.64 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil & Gas Expands Share Base Amidst Strategic Growth
Oct 27, 2025

Omega Oil & Gas Limited has issued 1,050,000 fully paid ordinary shares following the exercise of unlisted options. This move, compliant with the Corporations Act, highlights Omega’s operational transparency and commitment to growth. The issuance of these shares is part of Omega’s broader strategy to capitalize on its recent successes in the Taroom Trough, positioning the company as a significant player in the Australian energy sector.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.64 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil & Gas Strengthens Position with New Share Issuance
Oct 24, 2025

Omega Oil & Gas Limited has issued 1,600,000 fully paid ordinary shares following the exercise of unlisted options. This move underscores the company’s compliance with relevant provisions of the Corporations Act and reflects its ongoing efforts to strengthen its financial position. The issuance of these shares is part of Omega’s broader strategy to capitalize on its technical and operational expertise in the Taroom Trough, positioning the company as a significant player in the Australian energy sector.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.64 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil & Gas Lists New Securities on ASX
Oct 24, 2025

Omega Oil & Gas Limited has announced the quotation of 1,600,000 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of October 24, 2025. This move is part of the company’s strategy to enhance its financial flexibility and market positioning, potentially impacting its operational capabilities and offering new opportunities for stakeholders.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.64 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Omega Oil & Gas Relocates Headquarters to Brisbane
Oct 22, 2025

Omega Oil & Gas Limited has announced a change in its registered office and principal place of business to Suite 11A, 410 Queen Street, Brisbane, effective 22 October 2025. This move reflects the company’s ongoing operational adjustments as it continues to focus on its exploration activities in the Bowen Basin, aiming to leverage its recent successes in hydrocarbon discoveries to strengthen its position in the energy sector.

The most recent analyst rating on (AU:OMA) stock is a Buy with a A$0.64 price target. To see the full list of analyst forecasts on Omega Oil & Gas Limited stock, see the AU:OMA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025