Oz Comet Ridge Signs Pipe MoU

Australian explorer Comet Ridge and engineering firm LogiCamms have signed a memorandum of understanding to work together towards a 65-km pipeline connection option from Mahalo North (ATP 2048) in Queensland, Comet Ridge said February 26 in a statement.

Comet Ridge said it is continuing to work with Denison Gas and the Mahalo joint venture on the transportation of Mahalo North gas to market. “As an additional option, Comet Ridge has now entered into an agreement to consider an export solution via building a new pipeline, which would transport not only Comet Ridge’s 100% interest in Mahalo North but could also accommodate Comet Ridge’s 40% share of Mahalo JV gas, located immediately to the south of Mahalo North,” it added.

The two companies had been discussing technical aspects of export of gas from Mahalo North (and Mahalo) over the past weeks, and with the non-binding MOU in place, Comet Ridge said further data will be able to be shared and work can progress.

Under the MoU, work will also be carried out in order to consider, and get an understanding of, debt funding options for both the upstream portion of the project and the pipeline portion of the project, Comet Ridge said.

Sydney-listed Comet Ridge is focused on the development of gas resources for the east coast Australian market and has tenement interests and a suite of prospective projects in Queensland and New South Wales. In late October 2019, Comet Ridge was appointed preferred tenderer for the natural gas acreage ATP 2048 (Mahalo North), in the Southern Bowen Basin, as part of the Queensland government’s ongoing gas tender process.