Comet Ridge Secures Full Mahalo Gas Project Ownership
Comet Ridge has completed the acquisition of Santos' 42.86% interest in the Mahalo Gas Project, gaining 100% ownership and operatorship of the Mahalo Gas Hub. This move removes joint venture constraints and positions Comet Ridge to advance development in a tightening east coast gas market.
- Comet Ridge acquires Santos’ 42.86% stake for $24.42 million plus shares
- 100% ownership unlocks full control over Mahalo Gas Hub development
- Contingent $30 million payments tied to cumulative gas sales milestones
- Mahalo Gas Hub holds 361 PJ 2P Reserves and 676 PJ combined 2P and 2C resources
- Strategic location near Gladstone LNG and pipeline infrastructure
Comet Ridge Gains Full Ownership of Mahalo Gas Hub
Comet Ridge Limited (ASX:COI) has completed its acquisition of Santos QNT Pty Ltd’s 42.86% interest in the Mahalo Gas Project, now holding 100% ownership and operatorship of the entire Mahalo Gas Hub. The transaction, first announced in December 2025 and amended in May 2026, involved a $24.42 million cash payment plus the issuance of 83.78 million Comet Ridge shares to Santos. This acquisition removes the joint venture structure that had previously constrained funding and offtake negotiations.
Strategic Significance Amid East Coast Gas Tightening
Managing Director Tor McCaul highlighted that full control of Mahalo places Comet Ridge in a prime position to develop one of the few development-ready gas assets on Australia’s east coast. Despite ongoing uncertainty around government reservation policies weighing on sector sentiment, McCaul emphasised the solid fundamentals underpinning east coast gas supply tightening from later this decade. Situated in Queensland, the Mahalo Gas Hub benefits from proximity to both domestic markets and the Gladstone LNG precinct, with recent progress including Jemena’s pipeline licence to connect the project to existing infrastructure. This connectivity adds valuable optionality in an uncertain policy environment.
Material Reserves and Development Flexibility
The Mahalo Gas Hub covers approximately 1,850 square kilometres across multiple permits including Mahalo North, East, Far East, and Far East Extension. It contains 361 PJ of 2P Reserves and a combined 676 PJ of 2P Reserves plus 2C Contingent Resources. Sole ownership allows Comet Ridge to optimise project economics, development timing, and capital allocation without the need for joint venture consensus, as it advances toward a Final Investment Decision.
Contingent Payments Align with Production Milestones
In addition to the upfront consideration, Comet Ridge has committed to future contingent payments totaling $30 million, payable in three equal tranches upon the Mahalo Gas Project achieving cumulative sales gas milestones of 10 PJ, 20 PJ, and 30 PJ. This structure defers part of the acquisition cost until the project is producing and generating positive cash flow, aligning payment with project success.
Bottom Line?
Comet Ridge’s full ownership of Mahalo removes previous JV constraints, positioning it to steer development amid tightening east coast gas supply and policy uncertainty.
Questions in the middle?
- How quickly will Comet Ridge progress toward a Final Investment Decision on Mahalo?
- What impact will government reservation policies have on Mahalo’s market access and pricing?
- Will Comet Ridge pursue additional capital or offtake agreements to support project development?
