Key Highlights

  • Comet Ridge Limited (ASX:COI) reported on its 2026 operating activities, financial position and project developments. Its recent disclosures address the Mahalo acquisition, project engineering, infrastructure connections and Capital raising.
  • The company completed the Acquisition of Santos’ 42.86% interest in the Mahalo Gas Project on 21 August 2026.
  • Upstream front-end engineering design covering gas gathering, compression and water handling was transferred to the company after the acquisition.
  • The company raised AUD 40.88 million before costs through a Placement and share purchase plan.
  • At September-end, the company reported AUD 11.4 million in unaudited cash as engineering progressed for Mahalo.

Comet Ridge Limited (ASX:COI) develops Natural Gas resources in Queensland, including its interests in the Mahalo Gas Hub. Its shares were quoted at AUD 0.065, down 4.41%, on 4 November 2026. The company’s activities during the September quarter included changes to project ownership, infrastructure planning and financing arrangements.

The quarterly activities report released on 30 October 2026 described the acquisition of the remaining Mahalo interest held by Santos and a capital raising of AUD 40.88 million before costs. It also outlined ongoing engineering and development work across the gas portfolio.

Ownership Consolidation

The company completed the acquisition of Santos’ 42.86% interest in the Mahalo Gas Project on 21 August 2026. It now holds 100% of the wider Mahalo Gas Hub area and acts as operator. The upfront consideration included AUD 24.42 million in cash and 83.78 million shares issued to Santos.

The transaction also included AUD 30 million in contingent payments, structured as three AUD 10 million tranches at cumulative sales-gas milestones of 10 PJ, 20 PJ and 30 PJ. The company described these amounts as deferred until specified production milestones are achieved, rather than cash paid at completion.

Capital Raising and Funding

The company raised AUD 40.88 million before costs through a two-tranche institutional placement and a share purchase plan. The issue price was AUD 0.1025 per share, accompanied by one option for every two shares under the specified offer terms. The quarter ended with AUD 11.4 million in unaudited cash.

Equity approvals at the August general meeting covered the second placement tranche, related options, director participation and consideration shares. These capital-raising activities accompanied the change in ownership of Mahalo. The company also continued engagement on potential project and corporate-level transactions.

Engineering and Gas Transport

Upstream front-end engineering design covering gas gathering, compression and water handling was transferred to the company after the acquisition. An independent engineering contractor was engaged to review project costs and processing design. The integrated planning now covers Mahalo, Mahalo North and Mahalo East within one development sequence.

The planned gas pipeline is approximately 80 kilometres long. Engineering work envisages a 10-inch high-pressure connection to existing Queensland transmission infrastructure. A petroleum pipeline licence was granted for the planned route in 2026. The company stated that the proposed pipeline operator would build and manage the asset and charge a transportation tariff.

Reserves, Timing and Key Insights

The company identified 361 PJ of 2P reserves within the staged initial development areas and a combined 677 PJ in 2P reserves and 2C resources across the hub. The company outlined approximately 50 planned well sets and initial gas processing capacity of 50 TJ per day, with potential expansion to 70 TJ per day.

The development plan targets a final Investment decision around mid-2027 and first gas in 2029. Those remain forward targets and are distinct from the grant of licences or completion of engineering studies. The September report documents the acquisition, reserve position, funding and engineering work while commercial gas production from the proposed staged development remains ahead. The initial processing design also includes water handling and a proposed reverse-osmosis treatment facility.