East coast gas Supply has been an Australian policy preoccupation for a decade, and the companies holding permits close to existing infrastructure tend to attract attention whenever the debate flares. Comet Ridge (ASX:COI) spent much of 2026 consolidating exactly that kind of position in central Queensland, and in late August it finished the Job by taking full ownership of the Mahalo Gas Hub.

Latest Development

On 24 August 2026 Comet Ridge completed the Acquisition of Santos QNT Pty Ltd's 42.86 per cent interest in the Mahalo Gas Project joint venture. The transaction leaves Comet Ridge with 100 per cent ownership and operatorship of the entire Mahalo Gas Hub.

Consideration comprised A$24.42 million in cash, adjusted for past costs, licence fees and interest, plus 83.78 million Comet Ridge shares priced off a 10-day Volume weighted average. A further A$30 million is payable contingently in three equal tranches as cumulative sales gas reaches 10, 20 and 30 petajoules. The agreement was first announced in December 2025 and amended in May 2026.

Company Overview

Comet Ridge listed on the ASX in April 2004 and is an Australian Natural Gas company focused on Queensland. The Mahalo Gas Hub sits inland from Gladstone in central Queensland and now spans roughly 1,850 square kilometres across five permits: the Mahalo Gas Project itself, Mahalo North, Mahalo East, Mahalo Far East and the Mahalo Far East Extension.

Across that acreage the company reports 361 petajoules of 2P reserves and 676 petajoules of combined 2P reserves and 2C contingent resources. Proximity to Gladstone matters commercially, because it places the hub near both domestic Demand centres and liquefied natural gas export infrastructure.

Recent Developments

Completion was accompanied by the usual paperwork, with an application for Quotation of the consideration shares on 23 August 2026 and a notice under section 708A(5)(e) of the Corporations Act the next day. Mid-August brought a change of director's interest notice and a ceasing to be a substantial holder notice, both on 17 August 2026.

Managing Director Tor McCaul framed completion as putting the company in control of one of the few develop-ready gas positions on the east coast.

What Investors May Watch Next

The final Investment decision is the defining catalyst. Ahead of it, investors may be watching for gas sales agreements, infrastructure and pipeline arrangements into the Gladstone corridor, funding for development capital, and any reserve revisions arising from the consolidated position. Achievement of the first 10 petajoule contingent payment threshold would also signal commercial production.

Risks

Taking 100 per cent of a project removes a partner's Capital as well as its influence, concentrating funding risk on a company with a modest balance sheet. Coal seam gas development is capital intensive and exposed to approvals, drilling performance and connection timing. Contingent payments add future obligations, and east coast gas pricing and policy settings remain uncertain.

Conclusion

What investors should watch at Comet Ridge is straightforward enough: having bought out its partner, the company now owns the whole of a 361 petajoule 2P reserve position near Gladstone and must fund and execute its development alone. The outlook may depend on how quickly gas sales and financing arrangements fall into place ahead of a final investment decision.