Australian Comet Ridge Holds on to Mahalo
Australia-listed Comet Ridge has extended its agreement with Santos to operate and manage the Mahalo joint venture work program and budget in Queensland, Comet said February 23.
“This is an important event for Comet Ridge, as it represents validation from Santos regarding the 2017 work program that Comet Ridge successfully operated,” RBC Capital Markets analyst Ben Wilson said, adding: “We note that APLNG remains operator of any future Mahalo JV development."
It is the second agency agreement for the project between the two companies. Last April, Comet was appointed as agent for Santos in a similar capacity with responsibility to manage the field subsurface work.
The project is close to infrastructure with pipeline connections to the domestic market as well as the seaborne LNG market via the export terminals at the Port of Gladstone. Comet Ridge holds a 40% equity stake in the project – which is in central Queensland – with Australia Pacific LNG and Santos, which leads the Gladstone LNG project, each holding 30% interests.
On February 7, Comet announced that the gas rate had continued a strong upward trend, surpassing 390,000ft3/d. RBC expects it will hit peak rates of 800,000ft3/d-1mn ft3/d, Wilson said. “Comet Ridge remains a catalyst-rich play,” he said, adding that possible gas sales and pipeline access deal could come ahead of its phase 1 final investment decision expected this year.
Comet Ridge expects the work programme and budget will be formally approved next week.