Comet Ridge has provided an update on the progress of its Mahalo Gas Hub project, marking significant milestones in both the Mahalo East and Mahalo North developments.

The Mahalo East project, including successful drilling of the Mahalo East 1 and Mahalo East 2 wells, has shown promising results. Core samples taken from the Mahalo East 1 well have demonstrated strong gas desorption, indicating that the reservoir is producing encouraging volumes of gas.

“We’re very encouraged by the results from the Mahalo East 1 well, which show strong gas desorption volumes and give us confidence that the project is on track,” said Comet Ridge CEO, Peter Cleary. “The progress we've made so far sets the stage for the next steps in the development of the Mahalo Gas Hub.”

In addition to the successful drilling, the Queensland Government has supported the project with a $5 million grant under its Frontier Gas Exploration Grants Programme.

“We’re grateful for the Queensland Government’s continued support through the Frontier Gas Exploration Grants Programme,” Cleary added. “The $5 million grant is a testament to the confidence in the potential of the Mahalo Gas Hub, and it will help accelerate the next phase of development.”

Currently, Comet Ridge is gearing up for the next phase of production at the Mahalo East 1 well pad. The company is installing essential equipment like tubing and a downhole pump, to initiate water lifting and gas testing operations in January 2025.

The Mahalo Gas Hub project has also reached a significant milestone with the approval from Santos to proceed with the Front-End Engineering Design (FEED) phase. FEED marks the transition from the feasibility stage to the final engineering and design work before making a final investment decision (FID) on the project.

“Santos has given its approval to move into the FEED phase, which is a major step forward for the Mahalo JV,” said Cleary. “This is a crucial point in the project as we now move closer to finalizing the work program and establishing the timeline for the final investment decision. We will work closely with Santos to ensure that we stay on track for the next stages of the development.”

Comet Ridge holds a 57.14% stake and Santos holds 42.86% in the Mahalo JV. In the meantime, Comet Ridge has made progress with the Mahalo North project, which the company owns entirely. In August 2024, Comet Ridge received Environmental Authority (EA) approval from the Queensland Government for the Mahalo North project. The company is now in the process of securing EPBC (Environment Protection and Biodiversity Conservation) approval from the Federal Government.

“The environmental approvals for Mahalo North are progressing smoothly, and we expect to submit the final report soon,” Cleary said. “We remain on track to secure EPBC approval and to continue advancing the project.”