Comet Ridge receives reserves certification for Mahalo North

Comet Ridge Ltd., Brisbane, received initial reserves certification for its Mahalo North coal seam gas project in Bowen basin permit ATP 2048 in central east Queensland.

The project has 1P gas reserves of 11.9 petajoules, 42.9 petajoules of 2P reserves and 110.2 petajoules of 3P reserves, according to independent consulting firm Sproule Inc.

The figures are based on subsurface data incorporated into Comet Ridge’s geological model following success at the Mahalo North-1 pilot well drilled late 2021 and a production test on the vertical production well intersected by a dual lateral well. The test flowed 1.7 MMcfd.

The 2P gas reserves in the initial certification lie in the southern central part of the block close to Mahalo North-1.

The 3P reserves have been certified over a wider area. The company expects the 2P figure will be increased over time from drilling step-out pilot wells and/or development wells in Mahalo North as the permit is developed for production.

The 1P gas reserves have been included in the reserve certification on the basis that a development decision is planned as soon as transport arrangements and petroleum lease applications have been completed, said Tor McCaul, managing director, Comet Ridge.

McCaul said the smaller scale development plan at Mahalo North could be relatively easy to sanction due to modest expenditure and funding requirements and because the project is 100% owned by the company.

Contingent gas reserves will be assessed as an extension to reserves volumes in the future.

Comet Ridge also holds a 57.14% interest in the Santos Ltd.-operated Mahalo gas project in production licenses PL 1082 and PL 1083 to the south where certified 2P reserves of 152 petajoules and 3P reserves of 262 petajoules have been independently assessed net to Comet Ridge.