Comet Ridge has entered into a binding agreement to acquire Australia Pacific LNG (APLNG) interests in Mahalo, taking the company’s stake from 40 to 70 per cent.
The Mahalo Gas Project, located in the Denison Trough area of Queensland’s Bowen Basin, is a highly appraised gas field with more than 20 wells.
Comet Ridge has executed a funding agreement with continuing Mahalo joint venture (JV) partner Santos.
Payment – which will be $12 million in upfront considerations – is fully funded in loans from Santos and will be payable to APLNG at completion of the acquisition.
Additionally, $8 million in deferred considerations will be payable in tranches.
More project funding was also secured from long-term partner PURE Asset Management to ensure funding progress in its Mahalo assets.
PURE has agreed to provide Comet Ridge access to a term loan facility for up to $10 million.
In exchange for receiving loan funding, Comet Ridge is providing Santos with rights to acquire various interests in the Mahalo Gas Hub area.
Comet Ridge Managing Director Tor McCaul said the transactions established a streamlined JV with Santos, not only to progress development plans for the Mahalo Gas Project, but also for the whole gas hub area.
The Mahalo Gas Hub area, he stated, has the potential to become a significant supplier of gas to the east coast market.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos is keen to continue to develop its Queensland resources.
For more information visit the Comet Ridge website.
