Oil and Gas News

Comet Ridge completes placement ahead of Mahalo North drilling

Mahalo gas project

Comet Ridge has completed a $5 million placement to bolster its working capital position ahead of commencing an appraisal program focussed on gas flow and reserves addition, initially at Mahalo North, Queensland.

Managing director Tor McCaul said this placement was executed following strong demand from high quality institutions who had recognised the benefits of Comet Ridge’s recent transformational deals with APLNG and Santos.

“The company feels it has reached an inflection point where we can now fast-track the final appraisal, leading into the development of Mahalo, with our aligned JV, and also optimise value across the acreage by including Mahalo North and East blocks in the development plan. The strong institutional interest is validation of our strategy,” he said.

“We are really excited to now go and drill our first development-style, long lateral well in the Mahalo North block, where we feel we have strong prospects for significantly adding to the overall reserves position in the Mahalo area, leading to a bigger project.”

Comet Ridge has also executed a facility agreement with Pure Asset Management for the tranche 1 loan of $6.5 million. 

Combined with the placement, this provides Comet Ridge with pro-forma cash at June 30 of $14.7 million net of funding costs.

The placement comprises the issue of 64,472,726 new shares at an issue price of $0.0825 per share to raise gross proceeds of $5.3 million.

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