Comet Ridge has received firm commitments for a placement of $15 million for its Mahalo Development Program.
“The Mahalo Gas Hub is a high quality, development ready project, and we are pleased to have the support of investors to move the large Mahalo JV Gas project and our 100 per cent owned Mahalo North block to final investment decisions,” Comet Ridge managing director Tor McCaul said.
“The east coast gas market is tight, and will be so for the foreseeable future due to declining production from legacy fields and delays to new supply caused by market intervention.”
The placement strengthens Comet Ridge’s cash position, which sat at $7.8m at 31 December 2023.
Following the placement, Comet Ridge’s pro-forma cash, before costs, will be $22.8m, ensuring the company remains well funded to progress the Mahalo JV and Mahalo North projects towards final investment decision.
“Natural gas will remain critical to our energy security and Australia’s domestic manufacturing industries for decades,” McCaul said.
Taylor Collison Limited and Morgans Corporate Limited acted as Joint Lead Managers and Joint Bookrunners to the Placement.
“Comet Ridge is in a great position to deliver reliable, cost-effective energy to Australian energy markets by bringing the Mahalo Gas Hub projects into production,” McCaul said.
The placement price represents a 12.8 per cent discount to last close, and a 12.2 per cent discount to the five-day volumed weighted average trading price.
Placement shares are expected to settle on Tuesday 20 February 2024 and be issued on or around Wednesday 21 February 2024.
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