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Highlights
- Mahalo East pilot begins gas production sooner than anticipated, marking early operational success.
- Final analysis reveals higher than expected gas content, boosting potential reserves.
- Production testing is ongoing to establish reliable gas output rates and convert resources into reserves.
Comet Ridge, listed on the Australian Securities Exchange as (ASX:COI), is celebrating remarkable progress at its Mahalo East pilot production scheme located in the southern Bowen Basin, Queensland. This success comes as gas production commenced ahead of schedule, an encouraging development for the project's future potential.
The early initiation of gas flow was achieved after only five and a half weeks of de-watering—a process involving the strategic removal of water to decrease hydrostatic pressure and enable gas release. Comet Ridge's team has reported an unexpected boost in gas content from the core samples taken at the four coal seams targeted by the Mahalo East-1 vertical well.
Currently, gas production has been ongoing for two weeks and continues to rise as de-watering progresses. The emerging success of this pilot has the potential to substantially expand the development area at the Mahalo Gas Hub, which already holds a significant place in the region's energy framework.
According to Tor McCaul, Comet Ridge's managing director, the continuous flow of natural gas from the Mahalo East Pilot is a promising development. The gas flow observed after a mere five and a half weeks far exceeded the project's initial timeline expectations, highlighting both the project's potential and the higher-than-anticipated gas content from laboratory analyses.
This outcome positions Comet Ridge to potentially enhance its gas reserves significantly. Successful outcomes at the Mahalo East Pilot, combined with other developments in the Mahalo North and Far East areas, underscore the company's robust portfolio of gas reserves and resources.
Progress of the Mahalo East Pilot Scheme
The Mahalo East-1 vertical well and Mahalo East-2 lateral well, completed in October 2024, made significant strides by intersecting 1,338 meters of the target Aries coal seam in a horizontal section. This initiative was bolstered by a $5 million grant from the Queensland Government's Frontier Gas Exploration Grants Program.
Following the well completion, Comet Ridge implemented production tubing and a progressive cavity pump into Mahalo East-1, paving the way for the lifting of water and facilitating smoother production operations. Observations during this period indicated promising gas volumes desorbing from core samples sourced from Mahalo East-1.
With production tests offering favorable indications, efforts are ongoing to establish a consistent gas rate trend. Successfully determining this trend is key to converting current contingent resources into officially recognized proved and probable reserves, aligning with the company's strategic objectives to mitigate the impending gas supply challenges faced by Australia's east coast.
Notably, Comet Ridge’s interests extend beyond Mahalo East, with a significant 57.14% stake in the Santos-operated Mahalo Gas Project joint venture situated to the south, indicating the broader impact of its developments within the Australian energy market.
