Comet Ridge (ASX:COI) has taken full ownership and operatorship of the Mahalo Gas Hub after completing its acquisition of Santos’ (ASX:STO) 42.86% interest in the Mahalo Gas Project.
The company paid Santos $24.42 million in cash and issued 83.78 million Comet Ridge shares as upfront consideration. The shares were priced using the 10-day volume-weighted average price before settlement.
A further $30 million is payable in three $10 million tranches when the Mahalo Gas Project reaches cumulative sales of 10 petajoules (PJ), 20PJ, and 30PJ. The structure defers the remaining consideration until the project enters production.
Comet Ridge now controls development timing, sequencing, capital allocation, funding, and offtake negotiations across the hub as it works towards a final investment decision.
Managing Director Tor McCaul says the acquisition gives Comet Ridge oversight of a development-ready east coast gas position with access to domestic and export markets.
“Completing this acquisition puts us in control of one of the few development-ready gas positions on the east coast,” McCaul says.
The company is reviewing project economics based on full ownership and potential integration with its adjoining assets.
The Mahalo Gas Hub covers about 1,850km² across the Mahalo Gas Project, Mahalo North, Mahalo East, Mahalo Far East, and Mahalo Far East Extension permits.
According to Comet Ridge, the combined acreage contains 361PJ of proved and probable (2P) reserves and 676PJ of combined 2P reserves and 2C contingent resources.
Infrastructure company Jemena has also secured a pipeline licence for a planned connection between Mahalo and the existing gas network, providing a potential route to the east coast domestic market and Gladstone liquefied natural gas precinct.
Comet Ridge is an Australian energy company focused on developing natural gas resources for the east coast market, with project interests across Queensland and New South Wales.
Write to France Pinzon at Mining.com.au
Images: Comet Ridge
