The block is located northeast of the development-ready Mahalo gas project
Comet Ridge has been awarded 100% of the block as operator. (Credit: Terry McGraw from Pixabay)
The Queensland government has awarded the Mahalo Far East gas block to Comet Ridge for an initial term of six years.
Mahalo Far East is one of the two blocks, for which the company was chosen as the preferred tenderer in September 2020. The tendered block has now been officially awarded to Comet Ridge as ATP 2063.
Comet Ridge has been awarded 100% of the block as operator.
Covering an area of 338km2, the block is located northeast of the development-ready Mahalo gas project.
It is expected to add very significant additional gas in place volume to Comet Ridge’s portfolio in the Mahalo Hub area.
According to the company, the Mahalo gas project holds significant independently certified 2P and 3P gas reserve and is located close to existing pipeline connections to market.
The project has already secured both federal and state environmental approvals for development.
Comet Ridge stated: “The Mahalo Hub area has already achieved a number of key milestones that make it much more development-ready than a number of other potential natural gas developments on the east coast.”
With the new block, the company now holds three 100% blocks across the north of the main Mahalo gas project. The blocks cover a total area of 885km2.
In April last year, the company was awarded Mahalo North (ATP 2048) and Mahalo East (ATP 2061) in September.
Comet Ridge managing director Tor McCaul said: “Combining these blocks and sharing one large development for the whole Mahalo Hub area will provide greater efficiency and scale economy, as well as a material injection of natural gas into the east coast market, at a critical time.
“Importantly, a proportion of this Mahalo Hub natural gas is earmarked for the domestic market.”
The Mahalo project is 40% owned by Comet Ridge, with Santos and Australian Pacific Liquefied Natural Gas (APLNG) as partners with a stake of 30% each.
The asset is located in the Denison Trough area of Queensland’s Bowen Basin near Rolleston.