Comet Ridge expands Mahalo gas hub land position with award of new block
The new Mahalo Far East Extension block covers 66km2
Southern portion of new block hosts Mahalo gas hub high-quality fairway
Special Report: Comet Ridge has expanded its position in the Mahalo gas hub in Queensland with the award of a new block that hosts part of a high-quality fairway delineated by geological mapping.
The Mahalo gas hub consists of low cost, sales spec natural gas blocks, close to Gladstone containing significant, low CO2 gas reserves.
Comet Ridge’s (ASX:COI) wholly-owned project in the Bowen Basin hosts a high quality, shallow fairway that has been extensively appraised and proven to be capable of excellent gas production from three separate pilot production tests.
These includes the Mahalo North 1 pilot in ATP 2048 that flowed gas at a rate of 1.75 million cubic feet of gas per day (MMcf/d) from a single vertical pilot production well intersected by a dual lateral well.
Comet Ridge’s share of reserves and resources in the gas hub – including its 57.14% interest in the Mahalo Gas joint venture with Santos (ASX:STO) – at this point totals a proved and probable (2P) reserve of 195 petajoules (PJ) of gas along with a further contingent resource (2C) of 211PJ.
Mahalo North is currently undergoing front-end engineering and design studies with the company having the option to either deliver gas into existing infrastructure or connect it to the larger Mahalo Gas JV for a lower total capital cost.
The award follows on the company being awarded a $5m grant from Queensland government to undertake a pilot test on Mahalo East in 3Q this year.
The new Mahalo Far East Extension block in green. Pic: Comet Ridge
Greater position
COI has now increased its position in the Mahalo gas hub after it was selected by the Queensland government as the preferred tenderer for the new block, which is immediately north of Mahalo East (ATP 2061) and west of Mahalo Far East (ATP 2063).
Currently known as PLR2023-1-1 (to be named Mahalo Far East Extension), the new block covers 66km2 and does not contain any Queensland government domestic market supply obligations.
Notably for the company, the southern portion of the new block sits over the Mahalo gas hub high-quality fairway which will add future production wells into the development plan.
“We are very pleased to receive continued strong support from the Department of Resources in Queensland,” managing director Tor McCaul said.
“Natural gas is critically important for both keeping the lights on and manufacturing thousands of key products.
“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.”
Next steps
COI will now progress a standard condition environmental approval and native title arrangements in order to secure a formal Authority to Prospect (ATP).
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.
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