Highlights

• Mahalo East Pilot Production Scheme has been continuously producing natural gas for over two weeks, with initial gas flow occurring sooner than expected
• Final gas content analysis on core shows higher than expected gas content at Mahalo East 1 vertical well
• Success at this location provides for expansion of the already significant area available for development within the Mahalo Gas Hub
• Testing will continue with the objective of gradually increasing gas production and achieving initial 2P and 3P reserves certification for the Mahalo East Block

Comet Ridge advises that the Mahalo East Pilot Production Scheme has been continuously producing natural gas for over two weeks, with gas production increasing as dewatering continues. Initial gas flow has been achieved after only five and a half weeks of dewatering, significantly ahead of expectations. Production success at this location provides for expansion of the area available for development within the Mahalo Gas Hub.

Final gas content analysis of the extensive core taken from the Mahalo East 1 vertical well has recently been received and it reveals that gas content across the four coal seams is higher than pre-drilling estimates.

Reservoir fluid (water and natural gas) is flowing out of the natural coal fractures, along the Mahalo East 2 lateral well path, into the Mahalo East 1 vertical well. 

Comet Ridge Managing Director, Mr Tor McCaul, said: 
“Continuous natural gas flow at the Mahalo East Pilot is a very positive outcome for the Company. Initial gas flow occurred after only five and a half weeks of dewatering, which was much sooner than we expected. The core gas contents seen from the lab work were also higher than we expected. This has been a very positive production test, with gas arriving in the wellbore, and the first flow of gas occurring sooner than we saw in Mahalo North 1. 

“Having another successful pilot in the northeast gives us real potential to increase the scale of the already significant gas reserves and resources that Comet Ridge has at Mahalo in our 100% held Mahalo North, East and Far East areas.” 

Both 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. 

The production test will continue until such time as the gas rate trend is established sufficiently to enable a prediction of future performance and allow the booking of reserves. 

KeyFacts Energy: Comet Ridge Australia country profile