Mahalo gas project moves toward production with licence awards

The Comet Ridge Ltd. group’s Mahalo coal seam gas project in the Denison Trough in central Queensland has been granted two covering production licences by the Queensland government.

PLs 1082 and 1083, in the northern part of exploration permit ATP 1191, have been issued for a term of 30 years. The award is the final regulatory approval required for the project to move into production. Environmental approval was granted in June.

The group comprises Comet Ridge, Brisbane, with 40%, Santos Ltd. with 30%, and Australia Pacific LNG (operated by Origin Energy) 30%.

Comet Ridge farmed into the area and began coal seam gas exploration in 2004 targeting thin Bowen basin Permian-age coal seams known collectively as the Bandanna Coal Measures.

A number of shallow wells proved the extent and gas content of the coal seams. A four-well pilot scheme began in 2012 and the Mahalo 6/7 vertical-horizontal well was successfully drilled in 2017.

The project has estimated 2P gas reserves of 172 petajoules. In Phase 1 development, 20 wells are expected to produce around 20 petajoules/year through the nearby Denison Trough pipeline infrastructure that feeds the Curtis Island LNG plants near Gladstone as well as the Queensland domestic gas grid.

Comet Ridge is also working to prove up resources in its 100%-owned Mahalo North project in exploration permit ATP 2048. The plans include seismic interpretation to optimize drilling locations so the resource can be quickly tied into Mahalo or other nearby gas processing and pipeline facilities.