Comet Ridge awarded extension to its Mahalo Gas Hub

Comet Ridge secures 66km2 Mahalo Far East Extension block at its Mahalo Gas Hub
New block has the target high quality fairway to the south and is expected to be a source of future production wells
ATP 2072 has no Queensland domestic market supply obligations, allowing for gas to be sold in the LNG or domestic market

Special Report: Comet Ridge has expanded its Mahalo Gas Hub in Queensland with the award of tenement ATP 2072 (Mahalo Far East Extension) that is expected to be a source of future production wells.

Mahalo Far East Extension covers 66km2 and is immediately north of Mahalo East and west of Mahalo Far East.

The southern portion of the new wholly-owned block sits over the Mahalo Gas Hub’s high-quality fairway and does not contain any Queensland Government domestic market supply obligations, meaning that any gas produced can be freely sold into either the domestic or export LNG markets.

Comet Ridge’s (ASX:COI) Mahalo projects have proven ability to produce commercial gas with three successful pilots carried out on the high-quality fairway.

The latest, Mahalo North-1, flowed 1.75 million cubic feet of gas per day.

Highlighting the prospectivity of its acreage, the company recently secured a $5m grant from the Queensland Government that will be applied to a further pilot test on Mahalo East.

The Mahalo Gas Hub. Pic: Comet Ridge

“Strategically important asset”

“Natural gas is critically important for both keeping the lights on for consumers and for the hundreds of thousands of jobs in Australia’s manufacturing industries. The Mahalo Hub gas will contribute to both of those outcomes in eastern Australia, and the award of this block increases our position in this strategically important asset,” managing director Tor McCaul said.

He noted that the Company is focused on moving the Mahalo North project through the very heavily detailed and complex EPBC approvals process in Canberra, whilst also moving the Mahalo JV development through Santos’ internal process steps.

“This new area at Mahalo Far East Extension will offer additional gas production capacity to feed in (alongside Mahalo East and Mahalo Far East) after Mahalo North and Mahalo JV development (Comet Ridge 57% and Santos operated) commence gas production,” he added.

This article was developed in collaboration with Comet Ridge, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.