Comet Ridge announces that the Mahalo Gas Project (MGP) has been granted approval under the Commonwealth Government Environment Protection and Biodiversity Conservation Act (EPBC). This is the first of two environmental steps required for the project to move forward to production, with the second step currently being assessed by the Queensland State Government Department of Environment and Science. Subject to the MGP meeting all state environmental regulatory requirements, this second step could be concluded over the coming months.

Map source: Comet Ridge

Comet Ridge Managing Director, Tor McCaul said that although the Company had a primary focus on the 100% held Mahalo North block he was nonetheless very pleased to receive the MGP’s first major approval along the development pathway. The MGP is held 40% by Comet Ridge Limited, 30% by Santos and 30% by APLNG (where Origin Energy is the development Operator).

Mr McCaul added that it was very positive for the Company to be progressing both the Mahalo North Gas Project and the MGP at a time when the Federal Government was focussing on natural gas as a logical means of greater support for east coast power markets, and also for east coast industry. He added that the Queensland Government is also very supportive of natural gas, with a proactive acreage bidding programme that continues to be active to support domestic gas production.

Mahalo JV Project

Comet Ridge’s ATP1191 (formally ATP337) Mahalo asset is located in the Denison Trough area of Queensland’s Bowen Basin near Rolleston, and covers an area of 911 km2. Comet Ridge has a 40% interest in ATP1191 Mahalo JV Project Area with a clear focus on maximising 2P Reserves in the block. ATP337 was awarded on 1 October 1983 for a period of 4 years to CSR Ltd (60%) and OCA (40%), and included 181 blocks.

ATP337 was converted from a 1923 Petroleum Act permit to a Petroleum and Gas (Production and Safety) Act 2004 permit. This process included a change in permit number from ATP337 to ATP1191 and the permit remains an Authority to Prospect. ATP1191 has been granted for 4 years from 25 September 2015 until 24 September 2019.

The Mahalo JV Project Area is a subset area of ATP1191, and covers approx. 11.6 graticular blocks.

Comet Ridge farmed-in to the Mahalo JV Project Area acquiring a 40% interest in the JV Project Area in 2004, with Santos and APLNG retaining a 30% interest each. Santos and APLNG each hold a 50% interest in the remainder of ATP1191. Comet Ridge reduced its interest in the Mahalo JV Project Area to 35% in late 2011 through the divestment of a 5% interest to Stanwell Corporation. In late 2014, Comet Ridge announced the buy back of a 5% interest previously sold to Stanwell, returning Comet Ridge’s interest in the Mahalo JV Project Area to 40%.

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