Key highlights

  • Comet Ridge completed the Acquisition of Santos’ 42.86% interest in the Mahalo Gas Project on 21 August 2026, taking ownership to 100%.
  • The company reported a FY2026 loss after tax of $4.37 million and cash of $27.7 million at 30 June 2026, after a $40.9 million Equity Placement and SPP.
  • The Mahalo Gas Hub holds 676 PJ of gross 2P and 2C resources, and the company is optimising FEED towards a final Investment decision.

On 21 October 2026, Comet Ridge Ltd (ASX:COI) shares were lower by 2.99% at $0.065 during the trading session. Reference points for the session included the S&P/ASX 200 Energy [XEJ] at 11,167.20, up 0.014% or 1.60 points, and the S&P/ASX 200 [XJO] at 8,806.90, down 0.11% or 10.00 points, as of 2:32 pm GMT+11. Brent Crude advanced 0.60% to US$109.48 amid ongoing Middle East tensions that involve Iran, Saudi Arabia and Yemen’s Houthis, and a reported drawdown in US crude inventories pointed to tightening Supply conditions. Comet Ridge is an Australian energy company focused on developing Natural Gas for the east coast market from its Queensland projects, led by the Mahalo Gas Hub.

What Comet Ridge does

Comet Ridge Limited is an ASX-listed Australian energy company focused on developing natural gas for the east coast market. It holds tenement interests and projects across Queensland’s southern Bowen Basin and Galilee Basin, covering an acreage area of 6,592 km². Its flagship Mahalo Gas Hub, west of Gladstone, contains gross 2P reserves and 2C contingent resources totalling 676 PJ, located close to the Gladstone LNG export and domestic market precinct and to gas transport infrastructure.

Mahalo Gas Project ownership

According to the company’s FY2026 Annual Report for the year ended 30 June 2026, the Mahalo Gas Project was a joint venture with Santos QNT Pty Ltd at year end. The acquisition of Santos’ 42.86% interest was executed in December 2025, its key terms were revised in May 2026, and it completed on 21 August 2026, taking Comet Ridge to 100%. As part of the completion consideration, Santos accepted 83,782,550 new fully paid ordinary shares at an issue price of $0.1025 per share.

Santos completed its input into front-end engineering design for the gas field, gathering system, compression and water handling, and handed those workstreams to Comet Ridge. The company is reviewing and optimising the FEED by integrating its 100% owned Mahalo North and Mahalo East Assets towards a final investment decision.

Permits, approvals and offtake

Mahalo East achieved independent certification of 51.8 PJ of 2P reserves and 118.5 PJ of 3P reserves, and Mahalo North received federal EPBC environmental approval in December 2025. Jemena completed FEED technical work for a new 10-inch high-pressure pipeline from the hub, and the Queensland Government awarded Jemena a point-to-point petroleum pipeline licence.

The gas sales agreement with CleanCo Queensland was amended in June 2026 to extend the date for first gas supply and apply a flat profile at full contract rate, with the financing and gas transportation conditions precedent extended and two new conditions added, including demonstration of gas production and no adverse change to CleanCo’s requirement by 31 March 2027. A non-binding memorandum of understanding was signed with Highview Power in July 2026 for a supply target of 3.6 PJ per annum for at least five years.

Financial results and funding

Comet Ridge reported a loss after tax of $4.37 million for FY2026, compared with $2.47 million in FY2025, including non-cash items of $0.92 million. Cash was $27.7 million at 30 June 2026, compared with $13.3 million a year earlier.

The company raised $40.9 million through an equity placement, with Tranche 1 of $30.6 million completed on 24 June 2026 and Tranche 2 of $9.4 million completed in August 2026 after Shareholder approval, plus a share purchase plan that raised $875,750. Participants received one unlisted option for every two securities, with a Strike Price of 15.0 cents expiring on 30 June 2028. Its application to the Northern Australia Infrastructure Facility has been approved to proceed to due diligence.

Sector context

East coast gas supply is influenced by domestic reservation policy. The report notes a draft Domestic Gas Reservation Scheme design announced in May 2026, an exposure draft in September 2026 and an intention for legislation to commence in 2027, with domestic supply obligations from 1 January 2028. During the session, the S&P/ASX 200 Energy index was at 11,167.20 and Brent crude was at US$109.48 per barrel.

Risks and uncertainties

Comet Ridge has not yet taken a final investment decision on Mahalo, and the project depends on funding, which includes a pending NAIF process, along with FEED optimisation, pipeline and approvals. The CleanCo agreement’s first-gas date has been extended and now includes new conditions, and the Highview agreement is a non-binding memorandum. The company reported higher losses year on year, Issued Shares as part of the Santos consideration and has no production revenue. Gas prices, regulation and weather can affect outcomes.

Catalysts to watch

Milestones include the Mahalo FID, outcomes from the NAIF due diligence, satisfaction of the CleanCo conditions by 31 March 2027, conversion of the Highview memorandum into a gas sales agreement, the Domestic Gas Reservation Scheme legislation and further reserves certification.

Wrapping up

Comet Ridge’s FY2026 annual report combines a larger loss with a larger cash balance, full ownership of the Mahalo Gas Project and a funding and offtake program still to be finalised. Later announcements will show progress towards FID.