Comet Ridge Limited (ASX:COI): Mahalo Acquisition Refocuses Queensland Gas Development

Aditi Sarkar

19 October 2026 11:11 PM AEDT

Comet Ridge Limited (ASX:COI): Mahalo Acquisition Refocuses Queensland Gas Development

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Highlights

Comet Ridge completed its acquisition of the remaining Mahalo Gas Project interest in August 2026.
The transaction brings the flagship development project under the company’s sole ownership.
The Mahalo Gas Hub is located near existing infrastructure serving Queensland gas markets.
Development planning includes gas processing, gathering and pipeline connectivity.
Project funding, commercial arrangements and remaining development steps remain material considerations.

Comet Ridge Limited (ASX:COI) develops coal seam gas resources in Queensland, with its activities centred on the Mahalo Gas Hub and potential supply to eastern Australian markets. Its completion of the Mahalo Gas Project acquisition in August 2026 marks a change in the ownership structure of its principal development asset, placing attention on the practical steps required to progress gas production and delivery.

Mahalo Project Ownership Consolidated

On 24 August 2026, Comet Ridge Limited (ASX:COI) announced completion of the acquisition of the remaining interest in the Mahalo Gas Project. The transaction followed the company’s move to acquire the 42.86% interest previously held by Santos. With ownership consolidated, the project can be considered alongside the company’s other wholly owned Mahalo-area permits as part of its development planning.

Ownership is distinct from production readiness. Comet Ridge Limited (ASX:COI) still needs to progress the relevant engineering, financing and commercial arrangements before a development decision can translate into construction and operating activity. The completion announcement establishes a confirmed corporate milestone but does not, by itself, establish a commencement date for commercial gas supply.

Infrastructure and Gas Market Access

The Mahalo Gas Hub lies in central Queensland, approximately 240 kilometres from Gladstone, where gas infrastructure connects producers with domestic customers and LNG facilities. The company describes the Mahalo Gas Project as its most advanced asset, with petroleum leases granted. Pipeline access and upstream facility design are therefore important elements of its development pathway.

Comet Ridge Limited (ASX:COI) has identified the need for field gathering systems, gas compression and water handling in the upstream scope. Pipeline planning is separately intended to connect the hub with established Queensland gas transport infrastructure. These arrangements matter because certified resources cannot generate gas sales until production facilities and a workable route to customers are available.

Commercial Planning During the Year

In July 2026, Comet Ridge announced a memorandum of understanding with Highview covering gas sales. A memorandum of understanding is not equivalent to a completed long-term supply contract; its significance depends on the subsequent commercial terms and any binding arrangements reached. The company’s 2026 disclosures also identify ongoing work on financing and progressing the Mahalo development pathway.

For Comet Ridge Limited (ASX:COI), the key commercial distinction is between potential demand for Queensland gas and contracted, deliverable volumes. The company’s proximity to the Gladstone gas network is relevant, but decisions on development expenditure, infrastructure and marketing arrangements remain separate matters.

Development Conditions and Monitoring Points

The principal execution considerations include detailed project engineering, capital requirements, approvals applicable to individual works, arrangements for pipeline connections and the timing of a final investment decision. Each step can affect the order and pace of development. The company also conducts appraisal across other Mahalo Gas Hub blocks, which are at different stages from its flagship project.

Comet Ridge Limited (ASX:COI) operates in an energy market influenced by domestic gas demand and supply conditions. However, short-term international price movements do not establish the commercial outcome of a Queensland project. The more directly measurable factors are project milestones disclosed by the company, funding arrangements and the conversion of development plans into operating capacity.

Key Insights

Comet Ridge’s August 2026 acquisition completion brings its Mahalo Gas Project ownership into a single corporate structure. The development case now depends on implementation rather than the ownership transaction alone. Engineering, pipeline access, funding and gas sales arrangements will provide a clearer picture of when the asset might advance from planning towards production.

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