Comet Ridge completes $24mn placement

Sydney-listed Comet Ridge has received commitments for a placement of A$24mn ($16.2mn) through the issue of approximately 137mn new shares at A$0.175/share, it said on September 8.

About A$8.6mn of the funds raised under the placement is intended to be applied to core and pilot well drilling at the company’s 100% owned and operated northern Mahalo blocks in Queensland.

Comet Ridge will also provide A$8.2mn for loan repayment relating to the recently completed strategic acquisition of APLNG’s 30% stake in the Mahalo gas project. Funds will also be applied to Mahalo North initial reserves certification and pre-production engineering, with A$5mn applied to working capital.

“Comet Ridge is now well funded to continue its forward momentum and achieve its objective to become a meaningful gas supplier from its Mahalo gas hub assets into the strong east coast gas market,” managing director, Tor McCaul, said.

Mahalo gas hub area comprises Mahalo gas project, Mahalo North, Mahalo East and Mahalo Far East.