Comet Ridge Certifies 51.8 PJ 2P Reserves, Extends $9.5M Loan to 2027
Comet Ridge Limited has made significant progress in its Mahalo Gas Hub development, advancing engineering design, certifying substantial new gas reserves, and securing extended financing to support a Final Investment Decision.
- Upstream and pipeline FEED progressed for Mahalo Joint Venture
- Independent certification of 51.8 PJ 2P and 118.5 PJ 3P gas reserves at Mahalo East
- Environmental approval process advancing for Mahalo North
- PURE loan facility refinanced and extended to June 2027 with co-investment
- Cash position steady at $13.3 million, ongoing gas sales and funding negotiations
Engineering Design Progress
Comet Ridge Limited has reported meaningful advancement in the Front End Engineering Design (FEED) phase for its Mahalo Joint Venture gas project in Queensland’s Bowen Basin. Santos, the development operator, has progressed upstream FEED activities including gas field layout, compression, and water handling facilities. Simultaneously, Jemena has moved forward with pipeline FEED for a new 10-inch diameter pipeline to connect the Mahalo Gas Hub to existing Queensland gas infrastructure, facilitating both domestic and LNG market access.
Reserve Certification Strengthens Project Outlook
A key highlight is the independent certification of gas reserves at the 100% owned Mahalo East project, with 51.8 petajoules (PJ) of 2P (proved plus probable) reserves and 118.5 PJ of 3P (proved, probable, possible) reserves. This represents a significant upgrade from prior contingent resource estimates, bolstering Comet Ridge’s overall gas reserve portfolio and underpinning the project’s development potential. The certification was supported by recent drilling and production testing, which provided robust data on coal seam gas content and permeability.
Environmental Approvals and Regulatory Milestones
Comet Ridge is advancing environmental approvals for the Mahalo North project, with the federal EPBC referral process nearing completion. The company has responded to requests from the Department of Climate Change, Energy, the Environment and Water, including additional field studies on groundwater-dependent ecosystems. Approval is anticipated by the end of 2025, a critical step towards securing petroleum leases and progressing development.
Financial Position and Corporate Developments
On the financing front, Comet Ridge has refinanced its $9.5 million loan facility with PURE Asset Management, extending maturity to June 2027 and attracting $3.5 million in co-investment from family office investors. The refinancing included the issuance of new warrants, which could provide additional capital upon exercise. The company ended the quarter with $13.3 million in cash, maintaining a solid liquidity position as it continues negotiations for gas sales agreements with industrial and power generation customers. These agreements are crucial to underpinning the capital expenditure required for the Mahalo JV development and reaching a Final Investment Decision (FID) expected after FEED completion.
Outlook and Market Context
Comet Ridge’s Mahalo Gas Hub is strategically positioned to supply Australia’s east coast gas market, which faces structural supply challenges due to declining southern offshore fields. The company’s progress in engineering design, reserve certification, and regulatory approvals, combined with its proactive financing and sales strategies, position it well to contribute meaningful new gas supply in the coming years. However, the timing of the FID and successful completion of gas sales and funding arrangements remain pivotal to advancing the project into production.
Bottom Line?
Comet Ridge’s steady progress and strengthened reserves set the stage for a pivotal Final Investment Decision in the Mahalo Gas Hub’s development.
Questions in the middle?
- Will Comet Ridge secure all necessary environmental approvals for Mahalo North by year-end?
- How will ongoing gas sales negotiations impact the timing and scale of the Final Investment Decision?
- What are the potential shareholder implications of the new warrants issued in the loan refinancing?