Highlights

  • Comet Ridge (ASX:COI) completed its Equity raising, securing approximately A$40.9 million before costs to support the Mahalo Gas Hub acquisition.
  • The company issued 91.8 million final-tranche Placement shares at 10.25 cents each on 14 August 2026.
  • Comet Ridge is seeking full ownership of the Mahalo Gas Project after agreeing to acquire Santos' remaining 42.86 per cent interest.
  • Mahalo holds independently certified reserves of about 250 petajoules on a 2P basis and around 530 petajoules on a 3P basis.

For a junior gas explorer, the hard part is rarely the geology — it is the funding. Comet Ridge (ASX:COI) spent much of 2026 addressing that challenge, and on 14 August the final Tranche of its equity raising was completed. The Brisbane-based company issued 91,824,387 new shares at 10.25 cents each, completing a placement and share purchase plan that raised approximately A$40.9 million before costs. The Capital is primarily aimed at supporting the Acquisition of Santos' remaining interest in the Mahalo Gas Hub in central Queensland. With the funding completed, market attention now turns to development progress and whether the asset can deliver the expected long-term value.

Latest Development

The funding round was announced on 24 June 2026 at 10.25 cents per share, representing a 21.2 per cent discount to the prior close of 13 cents. It was structured in two placement tranches — a A$30.6 million first tranche issued under existing listing-rule capacity, and a A$9.4 million second tranche that required Shareholder approval. That approval was received at a general meeting on 6 August, where investors also ratified the first tranche and approved the issue of consideration shares to Santos. The second-tranche shares were allotted and quoted on 14 August, formally completing the placement. A share purchase plan at the same price added A$875,750 from retail investors. Placement subscribers also receive one free attaching option for every two shares, exercisable at 15 cents and expiring on 30 June 2028.

What the Numbers Show

The capital raising materially increases Comet Ridge's share count. The company issued close to 390 million placement shares plus the share purchase plan allotment, increasing the register from around 1.2 billion shares toward roughly 1.64 billion once all securities are settled. The issue price reflected the company's priority of securing funding certainty, with the 21 per cent discount representing the cost of raising capital in current market conditions. Against this dilution sits the Mahalo asset base. The project holds independently certified reserves of close to 250 petajoules on a 2P basis and around 530 petajoules on a 3P basis, located in Queensland's Bowen Basin with access to domestic and LNG markets through existing infrastructure.

Why It Matters

East coast gas Supply remains the broader market backdrop behind the transaction. Queensland gas projects that can supply domestic Demand and export-linked markets are positioned within a region facing future supply considerations. Full ownership of Mahalo would give Comet Ridge greater control over development timing, Marketing decisions and future Investment milestones compared with operating alongside a larger partner. It also simplifies project governance as the company moves toward a final investment decision. Managing director Tor McCaul described the raise as enabling the company to secure full ownership of a strategic position in the east coast gas market.

Growth Catalysts

The immediate catalyst is completion of the Santos acquisition. Comet Ridge is acquiring the remaining 42.86 per cent interest in the Mahalo Gas Project from Santos QNT, with the capital raising funding the cash consideration, stamp duty, rehabilitation bonding and front-end engineering design work required to progress toward a final investment decision. The revised transaction terms reduced the upfront cash requirement to about A$18 million, with a further approximately A$10 million in shares and up to A$30 million in contingent payments linked to gas sales milestones at 10, 20 and 30 petajoules.

Commercially, the company has an anchor customer through a long-term gas sales agreement with Queensland government-owned CleanCo, reset in June to cover 21 to 25 petajoules with first supply targeted from January 2030. Pipeline partner Jemena has completed technical engineering and secured environmental approval, leaving licensing as a remaining milestone on the transport side.

Risks Investors Should Watch

Mahalo remains a pre-final investment decision development project, meaning production and Cash Flow are still several years away. The CleanCo agreement highlights timing risk, with first supply moved from 2027 to 2030 and the take-or-pay commitment reduced from 90 per cent to 80 per cent. Comet Ridge also renegotiated Santos transaction terms and extended completion deadlines partly due to uncertainty around potential federal gas reservation policy changes. Execution risk remains, with FEED needing to translate into a firm cost estimate, financing and transportation agreements required before supply can commence, and further capital likely required for construction. The recent dilution also means shareholders may need to consider the possibility of additional funding requirements.

What Happens Next

The near-term milestones are focused on completing the Santos acquisition and progressing development approvals. Remaining conditions precedent for the purchase must be satisfied by 30 September 2026, after which Comet Ridge expects to move toward full ownership of the Mahalo Gas Hub and incorporate Santos' technical work into its development program. The market will then focus on the FEED outcome, financing arrangements, transportation agreements and progress on the pipeline licence. Each milestone will move Mahalo closer to a final investment decision and the transition from a certified gas resource to a potential contracted supply project.

Conclusion

Comet Ridge (ASX:COI) has completed the capital raising required to support its move toward full ownership of the Mahalo Gas Hub, removing an immediate funding constraint and providing a clearer pathway through the next stage of development. The project benefits from a substantial gas resource base, an existing CleanCo agreement and access to Queensland infrastructure. However, the company has also increased its share count materially, while first gas remains targeted for 2030 and construction funding is still ahead. The next phase will depend on converting ownership control and resource estimates into a fully financed and operating gas project.