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$5 million for Mahalo

Comet Ridge has been awarded a $5 million grant from the Queensland Government to undertake a pilot test at Mahalo East.

“Comet Ridge is very pleased to be the recipient of a Frontier Gas Exploration Grant, a further endorsement of the significant position that Comet Ridge has established in the Mahalo Gas Hub area within the Bowen Basin,” Comet Ridge managing director Tor McCaul said.

The Queensland Government has made a total of $21 million available under the Frontier Gas Exploration Program to support exploration in the Bowen Basin.

“The Mahalo East block is 100 per cent held by Comet Ridge and a successful outcome would further demonstrate the significant scale and strategic importance of the Mahalo Gas Hub in a tight east coast gas market,” McCaul said.

Comet Ridge will use the $5 million grant to drill and test a new pilot scheme, comprising a vertical production well and a lateral well at Mahalo East.

“The steering technology we plan to utilise for the Mahalo East lateral (horizontal) well will aid in the assessment of the optimum well length and design that can be applied across our entire Mahalo Gas Hub,” McCaul said.

“Longer lateral wells equate to less wells required for development and less surface impact and cost.”

This pilot will be similar to Comet Ridge’s successful Mahalo North pilot, with a trial of enhanced steering technology to improve lateral well length and design.

This technology can then be applied more widely across the Mahalo Gas Hub and the Bowen Basin. Comet Ridge plans to commence operations for this pilot program next quarter.

“Our gas industry is a critical enabler for Queensland’s economy by providing royalties, secure jobs, and is vital to our manufacturing sector and homes,” Queensland Resources Minister Scott Stewart said.

“We know we need additional supply, and this investment is critical to keep the gas flowing reliably to Australian homes and businesses.”

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