Comet Ridge signs major gas deal

The company’s Mahalo North Project inches closer to market after signing a non-binding letter of intent with Denison Gas for processing and transport service options.

The deal allows for up to 10 TJ/d of gas to be processed and transported from Comet Ridge’s recently awarded, 100 per cent owned and operated Mahalo North block via the Denison Gas pipeline.

The pipeline runs down the western side of Mahalo North and connects to the Queensland Gas Pipeline, which links to Gladstone and the domestic market.

Comet Ridge Managing Director Tor McCaul said first gas from the flagship Mahalo Project remains a priority for the company, but early gas from the neighbouring Mahalo North had strong economic appeal.

“If we can build up to 10 TJ/d of gas to market from the Mahalo North block, commencing in the first part of 2021, we can generate solid revenue for Comet Ridge,” said Mr McCaul.

“We can also support the Queensland Government’s policy of supplying gas for the local market.”

Mr McCaul said Mahalo’s development fairway could be traced up into the new Mahalo North block through the same coal reservoir and prior exploration implied that gas in the shallow coals extended into the new area.

“Comet Ridge has divided the initial development fairway at Mahalo North into two zones,” said Mr McCaul.

“The zone around and south of Luton 2, and contiguous with the Mahalo Gas Project, will be targeted for initial evaluation.”

Work on the ground and drilling of coal seam gas wells is expected to commence before mid-2020, subject to regulatory approvals.

For more information visit the Comet Ridge website

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