Oz Comet Prepares to Spud Next Drilling at Mahalo
Australian Comet Ridge is preparing to spud the next round of evaluation drilling at its Mahalo Gas Project in Central Queensland in the week commencing October 29, the company said October 12.
Comet has contracted the same rig that successfully drilled the Mira-6 well in late 2017, Silver City Rig 20, it said.
The number of wells and the amount of associated infrastructure required for the project has been curbed by favourable flow rates from the Mahalo Mira 6/2 well which exceeded production expectations of around 1.2 mn feet3 to 1.3 ft3 per day with a flow rate breaching 1.4mn ft3 per day, Comet said in July.
Equity participants in the Mahalo coal seam project along with Comet Ridge (40%) are Australia Pacific LNG (30%) and Santos (30%).
The project is located about 240 kilometres west of Gladstone, which is home to the Australia Pacific LNG terminal and Santos’ Gladstone LNG facility, along with Shell’s Queensland Curtis LNG export project.
On September 4, Comet extended the sunset date for final investment decision for the Mahalo block and renegotiated terms of a gas sales agreement with state-owned electricity generator Stanwell Corporation.
The FID sunset date has been extended from October 20 this year to September 30 next year and the new GSA is to be finalised on July 15, it said.
“Under the 2014 Agreement, Stanwell has the right to purchase up to one third of Comet Ridge’s Mahalo gas up to a maximum of 40 petajoules. This volume of gas will not change under the new GSA. Comet Ridge will be marketing the remainder of its Mahalo gas volume into the east coast market, with buyer(s) and terms for this volume yet to be finalised,” it said at the time.