Comet Ridge Limited provide Mahalo project update

Wednesday, Jan 09, 2013

Coal seam gas explorer Comet Ridge Limited (ASX:COI) is pleased to announce that the coals intersected in the Mira 4 well, at its ATP 337P Mahalo asset in Queensland’s Bowen Basin, are consistent with the earlier well drilled at the Mira field. The well intersected 8.7 metres of coal over four separate, closely spaced intervals in the Castor Pollux reservoir.

Mira 4 is the second well in an eight-well programme for the Mahalo Joint Venture and also the second of four pilot wells in the Mira field.

Mira 4 is located approximately 13 km southeast of the Mahalo pilot area and is approximately 250 km west of Gladstone in central Queensland. The well reached a total depth of 310 metres.Production casing has been run and cemented in the Mira 4 well and the well suspended as a future pilot production well. The well will be completed for production later this month, with tubing and a pump installed downhole.

The drilling rig is currently moving 500 metres to the east to the Mira 5 well location and is expected to spud that well shortly. Mira 5 is the third pilot well to be drilled in the Mira field.

Comet Ridge currently has a 35% interest in ATP 337P Mahalo, having divested a 5% interest in the asset to Stanwell Corporation Limited in an agreement announced in September 2011. Under the terms of that agreement, Stanwell Corporation Limited will fund Comet Ridge's expenditure for the Mahalo field and Mira field pilot schemes. The agreement also gives Stanwell Corporation an option to purchase half or all of Comet Ridge's equity in the Mahalo block, based on 2P reserves booked.

Equity participants in ATP 337P Mahalo are Comet Ridge Mahalo Pty Ltd 35%, Stanwell Corporation Limited 5% (with an option to increase), Australia Pacific LNG Pty Ltd 30% and Santos QNT Pty Ltd 30%.

Source: Comet Ridge Limited

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