Company Interview / Comet Ridge charts new orbit with 100% Mahalo ownership

Key points:

Comet Ridge (ASX:COI) attains 100% ownership of Mahalo gas project after acquiring Santos’ stakeCompany targets 2028 for first gas to address anticipated supply shortages in southern AustraliaFocus on supplying domestic gas users, with commercial benefits for shareholdersBroader portfolio includes exploration assets in the Galilee Basin

Comet Ridge secures full ownership of the Mahalo gas project in Queensland’s Palm Basin, following the purchase of Santos’ stake for $40 million and up to $20 million in milestone-linked payments. CEO Tor McCaul states that total project reserves surpass 670 petajoules, positioning Mahalo as a significant contributor to the East Coast gas market from 2028. McCaul expresses that securing complete control over Mahalo enables greater efficiency, as Comet Ridge can now integrate its northern blocks into the development and optimise decision-making without joint venture constraints.

McCaul outlines that the drive behind this acquisition stems partly from anticipated supply shortages in the southern Australian gas markets by 2028-2029, attributing this to reported delays in new project approvals. He adds that Mahalo’s targeted output is aimed at supporting domestic customers such as glass makers, fertiliser companies, and electricity generators, including a recent contract with Queensland Government-owned CleanCo. According to McCaul, Mahalo’s increased scale and focus bring commercial advantages for both regional gas consumers and Comet Ridge shareholders.

Funding options are currently under consideration, with several pathways including debt, equity, or partnering with aligned investors. Beyond Mahalo, Comet Ridge also holds substantial interests in the Galilee Basin, with future development planned once Mahalo achieves production and generates cash flow.