Comet Ridge (ASX:COI) Takes Full Ownership of Mahalo Gas Hub After $40.9m Raise

Sonal Goyal

30 October 2026 05:27 PM AEDT

Comet Ridge (ASX:COI) Takes Full Ownership of Mahalo Gas Hub After $40.9m Raise

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Highlights

Comet Ridge raised $40.88M before costs through a placement and share purchase plan.
The company completed the purchase of Santos' 42.86% interest and now owns 100% of the Mahalo Gas Hub.
Jemena completed technical FEED for a new pipeline and was awarded a pipeline licence.
Final investment decision is targeted for mid-2027, with first gas targeted for 2029.

Comet Ridge Limited (ASX:COI) has released its quarterly activities report for the period ended 30 September 2026. The Queensland gas developer completed a major capital raising and acquired full ownership of its Mahalo Gas Hub.

Capital Raising and Mahalo Acquisition

Comet Ridge raised $40.88M before costs through a two-tranche institutional placement and a share purchase plan at $0.1025 per share, with one free attaching option for every two shares. Shareholders approved the related resolutions on 6 August 2026.

On 21 August 2026, the company completed the purchase of Santos' 42.86% joint venture interest, giving it 100% ownership and operatorship of the Mahalo Gas Hub. Consideration included $24.42M in cash, 83.78M shares and up to $30M payable on reaching cumulative gas sales milestones of 10 PJ, 20 PJ and 30 PJ.

Development and Gas Sales

The Mahalo Gas Hub holds 361 PJ of 2P Reserves. The Stage 1A plan includes about 50 well sets and processing starting at 50 TJ/d, expandable to 70 TJ/d. Equinox Engineering is reviewing processing FEED, and Jemena completed technical FEED for a new 10-inch pipeline and received a pipeline licence from the Queensland Government.

A gas sales agreement with CleanCo covers 21 to 25 PJ over seven years, with conditions precedent still being progressed. A non-binding MOU with Highview Power was also announced. Comet Ridge believes Mahalo gas may qualify as additional gas under the proposed Domestic Gas Reservation Scheme, introduced as legislation after the quarter. FID is targeted for mid-2027 and first gas for 2029.

Financial Position

Cash at quarter end was $11.4M (unaudited), after investing outflows of $25.5M, mainly for the Mahalo acquisition. The company drew $9.5M from PURE Asset Management at 12% per annum, maturing 30 June 2027.

Discussions on development funding and possible project or corporate transactions continue. The Appendix 5B estimates about 2.2 quarters of funding.

Key Takeaways

Comet Ridge now owns and operates 100% of the Mahalo Gas Hub.
A $40.88M raise funded the Santos acquisition and ongoing development work.
Pipeline and processing FEED work is advancing toward a mid-2027 FID.
Development funding and binding gas sales remain key next steps.

FAQs

Q: How much did Comet Ridge raise?

A:$40.88M before costs through a placement and share purchase plan.

Q: What are Mahalo's 2P Reserves?

A:361 PJ of 2P Reserves.

Q: How much cash did Comet Ridge hold?

A:$11.4M (unaudited) at 30 September 2026.

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