Comet Ridge is advanced in preparations for the fourth quarter 2021 drilling and well testing program in its 100 per cent owned Mahalo North block.
The key items for the this program are the drilling and testing of the first long development style dual lateral well in the Mahalo Gas Hub area, at Mahalo North 2.
Silver City Drilling has been settled as the drilling contractor for the Mahalo North program, based on its accumulated experience in lateral well drilling with Comet Ridge and other southern Bowen Basin operators.
The Mahalo North field program includes drilling a vertical core hole (Mahalo North 1) to confirm key coal reservoir data from lab analysis; drilling a long development style dual lateral well (Mahalo North 2); and install a downhole pump in Mahalo North 1 and produce water and gas from both long lateral well bores via the vertical well.
The drilling contract for Silver City’s Rig 23 was executed last week with a target spud date for Mahalo North 1 around middle of October.
Preparation of the drilling pad and access tracks at the Mahalo North 1 location has also commenced and the balance of the service agreements will be executed over the coming days.
In addition, the company has completed two funding initiatives, including a placement of new shares to raise $5 million and a drawdown of the first tranche of the Pure Asset management facility of 6.5 million.
The combination of these funding initiatives, plus existing cash, provides Comet with 15 million to be applied to the upcoming Mahalo North drilling activities.
Comet has also provided a notice to CleanCo Queensland to commence gas sales negotiations in accordance with the 2019 agreement for the Mahalo gas project, Queensland.
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