Comet Ridge Advances Mahalo Gas Hub with 677 PJ Reserves and NAIF Funding Progress

• Binding agreement to acquire Santos’ 42.86% stake in Mahalo Gas Project
• EPBC environmental approval granted for Mahalo North development
• Upstream and pipeline FEED studies nearing completion
• NAIF debt funding approval progressing to due diligence
• Active negotiations underway for expanded gas sales agreements

Strategic Acquisition to Consolidate Mahalo Gas Hub

Comet Ridge Limited has taken a decisive step towards full ownership of the Mahalo Gas Project in Queensland’s Bowen Basin by entering into a binding agreement to acquire Santos QNT Pty Ltd’s 42.86% interest. Upon completion, Comet Ridge will control the entire 1,850 square kilometre Mahalo Gas Hub, a significant east coast gas asset with substantial reserves and development potential.

This consolidation is expected to increase Comet Ridge’s 2P reserves and 2C contingent resources to an impressive 677 petajoules, enhancing the company’s ability to optimise development sequencing and capital efficiency. Full operational control also offers strategic flexibility in delivering gas to Queensland’s key demand centres, including Gladstone and Wallumbilla.

Environmental Approvals and Engineering Progress

In late December, Comet Ridge secured critical environmental approval under the federal Environment Protection and Biodiversity Conservation Act for the Mahalo North natural gas development. This approval permits construction and operation of up to 68 coal seam gas wells and associated infrastructure, complementing existing approvals for the broader Mahalo Gas Project.

Meanwhile, Front End Engineering Design (FEED) studies are advancing well. Santos, as the current operator, continues to refine upstream designs including well layouts and gas compression facilities, while Jemena progresses pipeline FEED for a new 10-inch high-pressure pipeline to connect the project to the Queensland Gas Pipeline network. These parallel studies are expected to culminate in a Final Investment Decision once complete.

Funding and Commercial Negotiations Underway

Comet Ridge has received approval from the Northern Australia Infrastructure Facility (NAIF) to proceed to the due diligence phase for debt funding, a key milestone in financing the project’s development capital expenditure. The company is also actively negotiating gas sales agreements with industrial users, power generators, and retailers, aiming to increase contracted gas volumes from around 28 terajoules per day to between 70 and 75 terajoules per day.

These commercial arrangements are critical to underpinning project financing and ensuring market demand aligns with production capacity. Comet Ridge’s recent appointment of Robin Polson as Chief Financial Officer brings seasoned financial expertise to support these efforts.

Corporate Updates and Financial Position

At the end of December 2025, Comet Ridge reported $7.1 million in cash (unaudited) and maintains a secured loan facility of $9.5 million with Pure Asset Management Resources Fund. The company continues to engage with potential equity and project-level partners, although no binding agreements have yet been finalised.

Additionally, the company marked the retirement of long-serving Non-Executive Director Gillian Swaby, whose tenure included leadership of the Audit Committee and significant contributions to Comet Ridge’s growth over nearly two decades.

Outlook for East Coast Gas Supply

Comet Ridge’s consolidation and development of the Mahalo Gas Hub come at a time when Australia’s east coast gas market faces structural supply challenges due to declining southern offshore fields. The company’s low-CO2 coal seam gas reserves and proximity to existing infrastructure position it well to contribute meaningfully to domestic gas supply for manufacturing and power generation.

With FEED studies nearing completion and environmental approvals secured, the next quarters will be pivotal as Comet Ridge aims to finalise gas sales agreements, secure project financing, and reach a Final Investment Decision to advance the Mahalo Gas Project into production.

Bottom Line?

Comet Ridge’s full ownership and advancing approvals set the stage for a critical east coast gas supply boost, but financing and sales agreements remain key hurdles ahead.

Questions in the middle?

• When will the acquisition of Santos’ stake in the Mahalo Gas Project be completed and what conditions remain?
• How will Comet Ridge finalise gas sales agreements to support the expanded production target of 70–75 TJ/d?
• What are the timelines and risks associated with securing full project financing and reaching Final Investment Decision?