Comet Ridge Advances Mahalo Gas Hub with Key Approvals and Ownership Consolidation

Engineering Design Nears Hand-over Ahead of Acquisition Completion

The Mahalo Gas Project is advancing steadily with Santos completing its input into the Front End Engineering Design (FEED) for upstream elements including the gas field, gathering system, compression, and water handling facilities. These workstreams are poised to be handed over to Comet Ridge upon completion of its acquisition of Santos QNT Pty Ltd’s 42.86% interest. Meanwhile, Jemena has wrapped up the technical FEED for a new 10-inch high-pressure pipeline connecting the Mahalo Gas Hub to the Queensland Gas Pipeline, pending formal pipeline licence approval after receiving Queensland Government environmental clearance.

This pipeline, about 80 kilometres long, will be owned and operated by Jemena, which will charge transportation tariffs to the Mahalo Gas Project. The integration of upstream and pipeline FEED efforts underscores the project’s readiness to transition into development phases, contingent on acquisition finalisation and funding.

Environmental Approvals Cement Development Path for Mahalo North

Comet Ridge secured critical environmental approvals for the Mahalo North gas development, including a Federal EPBC Act approval and Queensland Environmental Authority. These approvals permit construction and operation of up to 68 coal seam gas wells and associated infrastructure on PLA 1128, expanding the company’s development footprint adjacent to the existing Mahalo Gas Project. The dual approvals represent a significant regulatory milestone, enabling Comet Ridge to integrate Mahalo North into a unified development plan across its 100% owned northern acreage.

The approval followed extensive assessments by the Department of Climate Change, Energy, the Environment and Water and the Independent Expert Scientific Committee on Unconventional Gas Development, reflecting the project’s compliance with stringent environmental standards.

Acquisition Set to Unlock Scale and Operational Control

Comet Ridge’s binding agreement to acquire Santos’ entire 42.86% interest in the Mahalo Gas Project remains underway, promising to consolidate full ownership and operator status over the Mahalo Gas Hub. This consolidation would boost Comet Ridge’s 2P reserves and 2C resources to 677 petajoules, enhancing its scale and flexibility in delivering gas to Queensland’s east coast market.

Full ownership will allow Comet Ridge to optimise development sequencing, integrate Mahalo North and East reserves into a capital-efficient plan, and streamline strategic and operational decisions. The company is actively progressing Gas Sales Agreements (GSAs) and funding arrangements to support the development capital expenditure, with CleanCo Queensland Limited agreeing to extend key GSA conditions to 31 May 2026.

These developments build on earlier announcements where Comet Ridge outlined the strategic value of full control over the Mahalo assets and the anticipated benefits to gas consumers and shareholders alike. The company’s engagement with multiple gas buyers and funding parties remains active but incomplete as of quarter end.

Financial Position and Capital Structure

At 31 March 2026, Comet Ridge held $2.63 million in cash (unaudited) and maintained a secured loan facility of $9.5 million with PURE Asset Management, maturing in June 2027. During the quarter, 22.7 million warrants related to the PURE loan expired and were cancelled, leaving 55 million warrants outstanding exercisable at $0.16 per share. The company’s cash runway without additional funding is limited to approximately 0.6 quarters, reflecting significant recent capitalised exploration and evaluation expenditures, including deposits related to the Santos acquisition and FEED costs.

Comet Ridge acknowledges the need for further funding to support ongoing operations and the acquisition, expressing confidence in securing these arrangements based on productive discussions and a track record of successful capital raises, including a $12 million placement in December 2024.

Substantial Gas Reserves Underpin Project Value

The Mahalo Gas Hub portfolio, including the Mahalo Gas Project, Mahalo North, and Mahalo East permits, holds a combined 2P reserves and 2C contingent resources of 427 PJ on a net basis to Comet Ridge. The company’s broader portfolio, including Galilee Basin and Gunnedah assets, adds further contingent resources, underscoring its position in the east coast gas market.

Comet Ridge confirms no material changes to prior reserve and resource estimates, with independent certifications supporting the robustness of the resource base. This foundation supports the company’s development plans and its role in addressing Queensland’s domestic gas demand.

These developments follow the company’s earlier progress in securing environmental approvals and advancing engineering design, as detailed in the binding agreement to acquire Santos’ stake and federal EPBC approval for Mahalo North announcements. The ongoing pipeline FEED completion complements the broader strategy outlined in the Mahalo Gas Hub development progress update, positioning Comet Ridge to move closer to a Final Investment Decision once funding and regulatory conditions align.