Highlights
• Mahalo Joint Venture upstream FEED progresses – Santos (Development Operator) has progressed
Front End Engineering Design (FEED) for the Gas Compression Facility. FEED for the Water Handling
Facility will be awarded imminently and all other disciplines are progressing smoothly.
• Mahalo Gas Hub pipeline connection FEED – The Mahalo Joint Venture participants have commenced
Pipeline FEED with Jemena to construct a new 10-inch pipeline to connect the Mahalo Gas Hub with
Jemena’s Queensland Gas Pipeline (for domestic gas transport) and the GLNG pipeline (for transport
to LNG facilities). The Pipeline FEED scope comprises all design work and agreements required to
enable the pipeline construction and the provision of gas transport services by Jemena on a build,
own and operate basis (subject to a Final Investment Decision).
• Mahalo East pilot test performing strongly with increasing gas flows recorded during the dewatering
phase and the reserves data package expected to be sent to the independent auditor over coming
weeks.
• Mahalo North EPBC referral is ongoing through the Federal Government, with Comet Ridge activities
during the March quarter focused on continuing water sampling and monitoring.
• Data Room process – Comet Ridge continued to engage with third parties during the quarter in
relation to a range of possible transactions from project funding, additional gas supply and
prepayment through to sale of project equity and corporate level transactions. With the Mahalo JV
Project now in Upstream and Pipeline FEED processes, GSA and funding arrangements are being
prioritised.
• $15.9 million of cash (unaudited) at the end of the quarterwith a final Queensland Government grant
payment of $1 million due to be received prior to 30 June 2025.
1. Mahalo Gas Hub Area, Bowen Basin, QLD
Comet Ridge holds 100% equity in four project areas in the northern Mahalo Gas Hub area and a 57.14% interest in
the Mahalo Joint Venture Project (with Santos QNT Pty Ltd (Santos) holding 42.86% as Operator). These projects (see
Figure 1) are close to existing pipeline infrastructure and the main natural gas demand and hub centres in Queensland,
with Gladstone to the east and Wallumbilla to the south. The Mahalo Joint Venture (JV) Gas Project progressed
upstream and pipeline Front End Engineering Design (FEED) processes during the quarter, with a Final Investment
Decision (FID) expected to the reached upon completion of FEED.
Comet Ridge Managing Director, Mr Tor McCaul, said: “We are very pleased to now have Santos managing the
upstream FEED for the Mahalo JV Gas Project and Jemena concurrently in FEED on the high-pressure pipeline
connection into both domestic and LNG markets. At the same time, the Comet Ridge team is carefully managing our
own 100% pilot production test at Mahalo East. The well performance has been progressing with a very steady and
managed drop in bottomhole flowing pressure and a commensurate increase in gas and water flowrates. We have
had continuous and steadily increasing gas through the pilot facilities for over two months. The Comet Ridge
subsurface team is compiling a technical data pack to go to our independent reserves auditor, which is expected to
be finalised over the next few weeks. Its very pleasing to see such a good quality data set at Mahalo East which
confirms the continuation of the high-quality fairway over such a big area within the Mahalo Gas Hub area. Comet
Ridge holds a strong equity position with the 100% northern blocks in addition to our Mahalo Joint Venture
development with Santos and Jemena.”
2. Project Development Activities
Comet Ridge is developing its Mahalo Gas Hub assets to provide gas supply for Australia’s east coast gas market. There
is a lack of material, green-fields developable gas on the east coast to help support a market that isforecast to continue
to be structurally short due to the decline of southern offshore fields and ongoing demand for gas for manufacturing
and power generation. The independently certified reserves and resources to date include Comet Ridge’s 100% owned
and operated Mahalo North and Mahalo East blocks, and the larger, Santos operated, Mahalo JV Gas Project (COI
interest 57.14%) (see Appendix 1). These projects will be further supplemented by planned development of gas from
Comet Ridge’s other 100% held permits at Mahalo Far East and the recently awarded Mahalo Far East Extension.
a) Mahalo Joint Venture (Comet Ridge 57.14%) – PLs 1082 & 1083 / PCAs 302 to 304
The Mahalo JV Gas Project is progressing with both FEED studies underway
The Mahalo Joint Venture Gas Project has the necessary scale (with 266 PJ gross 2P Reserves and 458 PJ gross 3P
Reserves) to support the development of new gas compression facilities and a circa 80 km pipeline connection.
The Mahalo JV Gas Project has environmental and permit approvals in place for gas production and processing. Final
approvals for a new circa 80 km (10 inch diameter) pipeline connection to both Jemena’s Queensland Gas Pipeline
(for domestic gas supply) and to GLNG’s pipeline to its Gladstone LNG facility (see Figure 1) are being progressed.
These approvals will include a Queensland Government pipeline licence and access agreements with landholders.
During the March quarter, the gas compression facility scope of work was awarded to an external contractor with
Santos staff imbedded and work progressing. The scope for water handling was revised and that package of work is
about to be awarded to an external contractor.
In March, the Mahalo JV participants (Comet Ridge and Santos) executed an agreement with Jemena Queensland Gas
Pipeline (1) Pty Ltd and Jemena Queensland Gas Pipeline (2) Pty Ltd (collectively, Jemena) to undertake FEED on a new
Mahalo Gas Hub Pipeline (MGHP).
The proposed MGHP will be a DN250 (10 inch) Class 900 pipeline, connecting the planned Mahalo JV compression
facilities to the Queensland Gas Pipeline (owned and operated by Jemena) and the GLNG Pipeline. It is proposed,
subject to FID, the MGHP will connect the Mahalo JV’s gas fields and processing facilities to the gas market hubs of
Gladstone and Wallumbilla in Queensland (see Figure 2).
Jemena may construct the MGHP on a build, own and operate basis once Pipeline FEED is completed and the Mahalo
JV Gas Project achieves FID. Jemena is funding the cost of the Pipeline FEED which is intended to be rolled into the
total construction cost assuming Jemena proceeds with construction of the MGHP.
The Pipeline FEED comprises two parts:
i. Engineering: Optimise the design and generate engineering deliverables required for project approval
applications, as well as key procurement and construction packages required to support tendering; and
ii. Approvals: Including field ecological studies, consultation with key stakeholders to support the development of
land access agreements and key project approval applications.
During the March quarter, the Mahalo JV continued to ground truth the pipeline, Jemena were engaged and have
established their project team to meet with and receive pipeline handover from the Mahalo JV operator. Jemena are
actively engaging with market participants to award key FEED support contracts.
It is expected that Upstream FEED will continue through 2025 for the Mahalo JV Gas Project as a precursor to FID. It
is planned that Pipeline FEED will be undertaken in parallel with Upstream FEED and within the planned project FID
timeframe.
b) Mahalo East (Comet Ridge 100%) – ATP 2061
The Mahalo East pilot production scheme commenced dewatering in January 2025 following
the successful drilling of a vertical and lateral well in the December quarter. The pilot
continues to perform strongly.
Final core analysis data for Mahalo East 1 has been
received and is being reviewed in detail. Isotherm data
confirms high gas saturations consistent with early
production pilot gas performance. Similar to other gas
samples from around the Mahalo Gas Hub, across a
very large area, the Mahalo East 1 gas composition
data confirms very high methane content with very low
CO2.
The location of the Mahalo East pilot wells (in red) in
relation to other CSG wells within the Mahalo Gas Hub
(in blue) is shown in Figure 1. The Mahalo East pilot lies
approximately 25 km east and 18 km north of the
successful Mahalo North and Mira Pilots where single
lateral well production was recorded at 1.75 and
1.45 MMcfd (millions of cubic feet of gas per day)
respectively. The Mahalo East pilot provides another
gas flow data point over a very wide area, with
extensive corehole, coalbore and seismic data infill
confirming continuity of reservoir characteristics
between pilots.
The Mahalo East vertical and lateral wells were drilled
with the support of the Queensland Government’s
Frontier Gas Exploration Grants Program, under which
Comet Ridge was allocated $5 million of funding (with
$1 million remaining to be received by Comet Ridge).
The production test is currently flaring gas (see
Figure 3) and will continue until such time as the gas
rate trend is established sufficiently to enable a
prediction of future performance and allow the
certification of reserves. A full data and modelling
package is being compiled by the Comet Ridge
subsurface team and this is expected to go to the
independent reserves certifier over the next few
weeks. Figure 3: Mahalo East 1 flare
For earlier operational information please refer to ASX releases on 10, 21 and 31 October, 11 November and
6 December 2024 and also 20 and 31 January and 12 March 2025.
c) Mahalo North (Comet Ridge 100%) – ATP 2048, PLA 1128 and PLA 1132
Comet Ridge continues to progress through the Federal EPBC approval process for Mahalo
North
Comet Ridge’s recent focus at Mahalo North has been to secure the two required environmental approvals
(Queensland and Federal) for the initial development area within Petroleum Lease application 1128 (PLA 1128),
followed by award of the Petroleum Lease (PL) by the Queensland Department of Natural Resources and Mines.
The State Environmental Approval (EA) was awarded to Comet Ridge by the Queensland Department of Environment,
Science and Innovation for PLA 1128 in August 2024. This is an important milestone for Mahalo North and a precursor
to award of the PL.
In relation to the Federal approval under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC),
Comet Ridge finalised its response to the Department of Climate Change, Energy, the Environment and Water’s
(DCCEEW) detailed information request. This has required Comet Ridge to undertake additional field work relating to
groundwater dependent ecosystems (GDE) to support its original submission in October 2023, including groundwater
monitoring and sampling around GDEs. A workshop to review the latest information is scheduled to be held in
Canberra during May.
3. Corporate Activities
a) CleanCo GSA
The CleanCo GSA was executed in September 2023 and has two remaining conditions to be satisfied, being satisfactory
finance and transport arrangements. The parties have been working proactively during the current quarter to agree
commencement and ramp up of gas supply that matches the development profile of the Mahalo Joint Venture Project
which is currently in FEED. These discussions will also align the final two conditions more closely with the timing of
Mahalo JV final investment decision. It is likely that documentation of these arrangements will be finalised in coming
weeks.
b) Other Gas Supply Arrangements
Comet Ridge has been in active discussions with multiple gas buyers during the quarter for additional gas sales
agreements (GSAs) which will assist Comet Ridge with financing its share of Mahalo JV development capex. The
counterparties include industrial gas users, power generators and gas retailers. Comet Ridge plans to finalise these
negotiations into new GSAs, including prepayment arrangements, whilst FEED is ongoing at Mahalo JV and prior to a
Final Investment Decision.
c) Data Room Process
Comet Ridge continued to engage with third parties during the quarter in relation to a range of possible transactions
from project funding, additional gas supply and prepayment through to sale of project equity and corporate level
transactions. With the Mahalo JV Project now in Upstream and Pipeline FEED processes, it is expected that GSA and
funding arrangements can be prioritised so that Comet Ridge is able to meet Final Investment Decision requirements.
Whilst activities continued during the quarter, the discussions are incomplete and confidential and there is no
guarantee that a final proposal will be received, or received on commercially acceptable terms, or that any transaction
will eventuate.
d) Cash Position and Debt Facilities
At 31 March 2025, Comet Ridge had $15.9 million cash on hand (unaudited). A final grant payment of $1 million under
the Queensland Government Frontier Exploration Grant Program is also due to be received by Comet Ridge prior to
30 June 2025.
Comet Ridge’s secured debt facilities (see Table 1) with PURE Asset Management (PURE) were unchanged during the
March 2025 quarter. With the loan maturing within the next six months, Comet Ridge and PURE have negotiated a
Term Sheet to extend the loan period and associated warrant arrangements. These terms are non-binding and subject
to finalisation of legal agreements and due diligence.
e) Payments to Related Parties
The aggregate value of payments to related parties and their associates of $251k for the March 2025 quarter (shown
in item 6.1 of the attached Quarterly Cashflow Report) relates to the salary of the Managing Director and fees paid to
Directors (including PAYG and superannuation payments made on their behalf).
f) Shares and Performance Rights
The total number of securities on issue at the date of this report is:
• Ordinary shares: 1,196,438,720 (no change during the quarter); and
• Warrants: 62,121,212 (no change during the quarter).
By Authority of Board per: Tor McCaul, Managing Director