Comet Ridge signs conditional deal to operate Mahalo gas project in Australia

Comet Ridge Ltd. has agreed to a conditional purchase certain assets in Australia from Santos QNT Pty Ltd. that would result in its full ownership of the Mahalo gas project.

Under the agreement, Comet Ridge would acquire Santos’ 42.86% operated interest in the Mahalo Joint Venture, in Queensland’s Bowen basin, for $40 million (Aus.) (US$26.46 million) in upfront consideration and up to $20 million (Aus.) (US$13.24) in contingent payments linked to production milestones.

The $40 million (Aus.) would be payable on completion, scheduled to occur at final investment decision (FID) for the natural gas project, or June 30, 2026, whichever is sooner.

At deal closing, Comet Ridge 2P reserves and 2C resources at the Mahalo gas hub would increase to 677 petajoules.

Comet Ridge managing director Tor McCaul said the simplified ownership structure would allow the company “to ensure Mahalo does make a significant contribution to the east coast domestic gas market at a critical time.”

Santos has taken the project “well into front end engineering design,” McCaul, said, “and we look forward to picking up that work in the first quarter of 2026 as we move towards a final investment decision on development.”

Comet Ridge currently holds 57.14% interest in the 1,850-sq km Mahalo hub area.

The total area to be held under 100% ownership by Comet Ridge will comprise:

• Two Mahalo development petroleum leases that form Stage 1 of the Mahalo gas project (PLs 1082 & 1083).
• Three Mahalo Potential Commercial Areas to the south (302 to 304).
• Two Mahalo North Petroleum Lease Applications to the northwest (1128 & 1132).
• Three Authorities to Prospect to the northeast (2061, 2063 & 2072).

The Mahalo gas project interest acquired from Santos encompasses the shallows strata from surface down to the base of the Lower Mantuan Coal. Specifically, this comprises PLs 1082 and 1083 and PCAs 302 to 304. The deeps will continue to be held 50:50 by Santos and Australia Pacific LNG Pty Ltd. (APLNG).

There has been no new drilling activity in the Mahalo Deeps since the Lowesby 1 well was drilled in 1991.