Comet Ridge Ltd

Comet Ridge completed buying Santos's 42.86% of the Mahalo Gas Project, now holding 100% and operating the whole ~1,850 km2 hub. It paid $24.42m cash plus 83.78m shares; up to $30m more is payable at 10, 20 and 30 PJ of sales.

asset acquisition disposition

CleanCo GSA reset: supply start moves from 1 Jan 2027 to 1 Jan 2030, take-or-pay falls from 90% to 80%, and finance and transport conditions are pushed from 30 Jun 2026 to 31 Mar 2027. Volume stays 21-25 PJ; new production test added.

material agreement

Comet Ridge raised $40m via a two-tranche placement at $0.1025 per share, a 21.2% discount to the last close, plus a planned $5m share purchase plan. Proceeds fund the Santos Mahalo acquisition and FID preparation, addressing the open funding question. Attaching options have a 15c strike.

capital raising announcement

Queensland awarded Jemena pipeline licence PPL 2085 for the roughly 85 km, 10-inch Mahalo Gas Hub pipeline, resolving the pending licence. Commercial agreements (including a gas transport agreement) with Jemena are still to be finalised, targeted later this year.

regulatory community update

The Santos Mahalo deal was restructured after funding proved hard amid the gas reservation uncertainty. Completion payment drops from $38m to $28m ($18m cash plus $10m in shares), contingent payments rise to up to $30m, and the funding deadline moves to 14 August 2026.

asset acquisition disposition

Federal EPBC approval received for Mahalo North (PLA 1128, 141 km2, 100% COI), allowing up to 68 coal seam gas wells. This resolves the long-awaited approval, expected in December, and adds to the Queensland EA granted August 2024.

regulatory community update

Comet Ridge agreed to buy Santos's 42.86% of the Mahalo Gas Project, lifting its interest from 57.14% to 100% and making it operator. It pays $40m on the earlier of FID or 30 June 2026, plus up to $20m contingent on production. Funding is not yet arranged.

asset acquisition disposition

The Northern Australia Infrastructure Facility (NAIF) board approved the Mahalo JV Gas Project to move to its due diligence stage for debt financing. This is not a commitment to lend. The company aims to finalise a debt and equity package for FID in the first half of 2026.

debt financing

Mahalo East received its first independent reserves certification: 51.8 PJ of 2P and 118.5 PJ of 3P, as at 30 June 2025. This converts earlier contingent resources (2P is 67% above prior 2C) and lifts Comet Ridge's net reserves to nearly 250 PJ 2P and 530 PJ 3P.

resource reserve update

The two remaining conditions in the CleanCo gas sales agreement were pushed back to 31 March 2026, to align with the expected Mahalo FID. Supply now starts in 2027 at a lower rate over the first nine months, with a minimum of 21 PJ still to be delivered over seven years.

material agreement

The $9.5m PURE loan, due September 2025, was extended to 30 June 2027 at an unchanged 12% interest, with no fee. Two co-investors took $3.5m of it. 55m new warrants at $0.16 are issued and about 39.4m old Tranche 1 warrants cancelled.

debt financing

The Mahalo JV (Comet Ridge 57.14%, Santos 42.86%) engaged Jemena to run FEED on the 10-inch pipeline to the Queensland Gas Pipeline and GLNG pipeline. Jemena is funding the FEED and may build, own and operate it after FID. Resolves the pending Pipeline FEED approval.

material agreement

Mahalo East pilot has produced gas continuously for over two weeks, with first gas after only five and a half weeks of dewatering, ahead of expectations. Final core gas content is higher than pre-drilling estimates. Testing continues toward an initial 2P/3P reserves booking.

well test result

Comet Ridge raised about $12m through a placement at $0.14 per share, a 9.7% discount to the last close. Funds are intended for its share of Mahalo JV FEED, Mahalo East production testing, Mahalo North approvals and corporate costs. This follows the $15m raised at $0.17 in February 2024.

capital raising announcement

Santos, as operator, approved the Mahalo JV Project (Comet Ridge 57.14%) to start FEED, a step towards a final investment decision; this resolves the pending approval from the quarterly. Mahalo East production equipment is being installed, and Mahalo North EPBC data is due soon.

joint venture update

Mahalo East drilling finished: the ME2 lateral intercepted ME1 and drilled 1,338 m in the Aries coal seam, and core gas desorption is strong. Production testing is expected early in the new year, aiming for a first Mahalo East reserves booking.

drilling result

Mahalo East 1 reached 362 m, intersecting 7.2 m of net coal with higher-than-expected permeability in the lower two seams. The Mahalo East 2 lateral well spudded 20 October, targeting the Aries Seam. Gas flow rates from the lateral are not yet reported.

drilling result

Queensland awarded the Environmental Authority for Mahalo North (PLA 1128), the first development approval for its 100% assets, after about two years' work. Petroleum Lease 1128 is expected next; federal EPBC approval, referred October 2023, is still outstanding.

regulatory community update

The Mahalo Far East Extension block, where Comet Ridge was preferred tenderer in June, was formally awarded as ATP 2072: 66 km2, 100% Comet Ridge as operator, six-year initial term, no domestic supply obligation. This resolves the June approval caveat.

asset acquisition disposition

Comet Ridge was selected as preferred tenderer for a new 66 km2 gas block, called Mahalo Far East Extension, on a 100% basis with no domestic supply obligations. Formal award still needs environmental approval and Native Title arrangements.

asset acquisition disposition

Comet Ridge won a $5m Queensland Government Frontier Gas Exploration grant to drill and test a lateral pilot at its 100%-owned Mahalo East (ATP 2061), which holds 31 PJ 2C and 122 PJ 3C of contingent resources. Operations are planned to start next quarter.

contract award

Comet Ridge raised $15m through a placement of 88.5m shares at $0.17, a 12.8% discount to last close, lifting pro-forma cash from $7.8m to $22.8m. Funds go to Mahalo North, its share of Mahalo JV FEED costs and working capital.

capital raising announcement

Sproule raised Mahalo North 3P Reserves by 39 PJ (35%) to 149.2 PJ, from five new areas added in pre-FEED design work. The 1P (11.9 PJ) and 2P (42.9 PJ) figures are unchanged, so only the most speculative category grew.

resource reserve update

CleanCo's shareholding Ministers approved the seven-year, 3 PJ a year gas sales agreement signed in September, clearing that approval condition. Supply is still to start in the 1 July 2025–30 June 2026 window and remains conditional on project steps such as FID.

material agreement

COI executed its first gas sales agreement, a seven-year deal with Queensland Government-owned CleanCo for 3 PJ a year (21–25 PJ total), starting between 1 July 2025 and 30 June 2026. It resolves the long-running negotiation but needs Queensland Government approval and depends on FID and finance. Monthly repayments also cover Stanwell's earlier investment.

material agreement

The CleanCo gas sales agreement is now substantially completed, with the negotiating period extended a third time, to 31 August 2023, so final Federal gas code requirements (expected in July) and board approvals can be included. It is still unsigned; it would be COI's first Mahalo gas sales agreement.

material agreement

COI signed a non-binding MOU with Orica for long-term Mahalo North gas supply to its Yarwun plant near Gladstone. Binding terms and funding structures are still to come, and the deal depends on securing a pipeline connection to the Queensland Gas Pipeline.

material agreement

COI signed an MOU and pre-FEED agreement with Jemena for a roughly 73 km pipeline from Mahalo North to the Queensland Gas Pipeline, for at least 25 TJ/d. Jemena would build and own it. It runs parallel to the Denison route and adds a larger option.

material agreement

COI and Denison Gas will jointly fund a Verbrec FEED study to upgrade Denison's infrastructure to process up to 10 TJ/d from Mahalo North. Commercial terms follow the study, advancing the early-gas route to market.

joint venture update

Sproule certified Mahalo East (100% COI) at 31 PJ 2C and 122 PJ 3C contingent resources, delivering the year-end certification expected. If appraisal converts them to reserves, COI's net 3P across Mahalo would be nearly 500 PJ. A pilot test is still required first.

resource reserve update

First independently certified reserves for 100%-owned Mahalo North: 1P 11.9 PJ, 2P 42.9 PJ, 3P 110.2 PJ. This resolves the targeted certification and adds 28% to COI's net 2P and 42% to net 3P reserves. A development decision awaits transport arrangements and petroleum lease approval.

resource reserve update

Santos exercised its option to take 12.86% of the Mahalo Gas Project, cutting COI from 70% to 57.14%. The $13.15m Santos loan falls by $5.14m to $8.01m, to be repaid 28 September. Santos takes $3.43m of the $8m deferred payment to APLNG.

farm in farm out completion

Galilee Basin ATP 743 and 744, held with Vintage Energy, were renewed for 12 years. Six Potential Commercial Areas covering about 4,700 km2 were awarded for 15 years, resolving the renewal and PCA applications pending since 2021. ATP 1015 is expected to follow later in 2022.

regulatory community update

COI raised $24m through a placement of about 137m shares at $0.175, a 20% discount to the 5-day VWAP. Funds: $8.6m for Mahalo North/East drilling, $8.2m for loan repayment, $5.0m working capital, plus reserves certification.

capital raising announcement

The Mahalo North 1 pilot test is being scaled down, with site work ending that week, as COI says it has the data it needs. Focus turns to reserves certification and a Petroleum Lease application. Management cites gas buyer interest.

well test result

Mahalo North 1 gas passed 1.7 MMcfd, the highest from any pilot well in the Mahalo Gas Hub area. COI says this confirms the high-productivity fairway extends into its 100% Mahalo North block, and aims to file a Petroleum Lease application by year end.

production update

COI completed buying APLNG's 30% of Mahalo on 28 June, lifting its interest from 40% to 70%. Net 2P reserves rise 80 PJ to 186 PJ and 3P by 138 PJ to 321 PJ. Santos has a six-month option over 12.86%.

asset acquisition disposition

The APLNG deal to buy its 30% of Mahalo is now unconditional, resolving the last open condition. The remaining $11m of the $12m upfront payment is due by 28 June, lifting COI from 40% to 70%, funded by a $13.15m Santos loan.

asset acquisition disposition

Mahalo North 1 reached critical desorption pressure and moved into the gas production phase, with gas pressure bled off to commission the flare. A steadily rising gas flow is expected. Management says it verifies the reservoir quality, ahead of reserves certification.

well test result

Both government approvals for buying APLNG's 30% of Mahalo are now done: a separate environmental authority and indicative ministerial approval of the transfer. Only the joint venture documentation condition remains before completion, taking COI to 70%.

asset acquisition disposition

Mahalo North 2 dual lateral completed: second lateral drilled to 1152m, giving over 2100m of lateral with almost 1900m in coal. High fluid losses point to a natural fracture network. The rig is released; production testing is expected to start in December.

drilling result

Mahalo North 2 dual lateral well spudded 25 October 2021, 450m from Mahalo North 1. It is designed to hit the target coal at ~250m depth, intersect MN1, and expose over 2000m of coal across two laterals.

drilling spud

Mahalo North 1 reached 314m, intersecting 9.03m net coal, with a ~7m Castor-Pollux package as predicted. A short flow test measured permeability of 250 millidarcies, which management calls high-end. Mahalo North 2 spud was planned later that day; lab results are months away.

drilling result

Mahalo North 1 vertical core well spudded 16 October 2021 in ATP 2048 (100% COI) using Silver City Rig 23, on schedule with the mid-October target. Planned depth 310m; it will provide the intercept well for Mahalo North 2.

drilling spud

COI raised $5.3m gross ($5.0m net) via a placement of 64.5m shares at $0.0825, a 12% discount to the 20-day VWAP, about 8.1% of issued capital. Funds support Mahalo North appraisal drilling; pro-forma cash is $14.7m including the $6.5m PURE tranche.

capital raising announcement

COI signed a $10m four-year loan facility with PURE Asset Management: $6.5m drawn immediately, $3.5m available later. Interest is 12% before FID and 10% after, with warrants at 16.5 cents (83% premium) on 39.4m shares for tranche 1. This is COI's first debt after being debt-free.

debt financing

COI agreed to buy APLNG's 30% of the Mahalo Gas Project for $20m ($12m at completion, $8m deferred), lifting its stake from 40% to 70%. Santos lends $13.15m for the upfront cost and gains an option on 12.86% plus negotiating rights. This resolves the JV pathway thread.

asset acquisition disposition

Mahalo Far East was formally granted as ATP 2063, 100% COI and operator, 338 km2, six-year term, after the September 2020 preferred-tenderer win and native title and environmental approvals. COI's three 100% Mahalo blocks now total 885 km2.

asset acquisition disposition

Mahalo East was formally granted as ATP 2061, 100% COI and operator, 97 km2, six-year term, a week after the preferred-tenderer win. Appraisal is planned around end of Q1 2021, subject to funding. Mahalo Far East ATP will take months.

asset acquisition disposition

Comet Ridge was named preferred tenderer for two more 100% blocks east of Mahalo North: Mahalo East (97 km2) and Mahalo Far East (338 km2). They become ATPs after environmental and native title approvals, expanding the Mahalo Gas Hub footprint.

asset acquisition disposition

Comet Ridge is investigating selling part of its 40% Mahalo interest to fund the equity share of development, so it can focus on 100% Mahalo North. The JV has agreed a 60 TJ/d facility target but no FID or first-gas date. Text is truncated.

asset acquisition disposition

Mahalo Gas Project was granted Petroleum Leases 1082 and 1083 for 30 years, the final regulatory approval needed to move toward production. COI holds 40%. FID has not yet been set, but the approvals thread from the context is now resolved.

regulatory community update

Comet Ridge was formally awarded ATP 2048 (Mahalo North), 450 km2 at 100%, after the Environmental Authority and Native Title agreement were completed. This converts the October 2019 preferred-tenderer win into granted tenure. Modelling still suggests up to 20 TJ/d.

asset acquisition disposition

Strategic review concludes: keep Galilee/Gunnedah and Mahalo assets together (so no demerger) and prioritise 100% Mahalo North. Because of COVID-19 and low oil prices, Albany stimulation is suspended, staff pay cut 30-50% and directors take fees in shares. Cash to exceed $8m at end of March, runway late into 2021.

other

Mahalo North work programme is planned to start in Q2 2020 after tenure award. Modelling suggests dual lateral wells could flow 2-3 million scf/d and the block up to 20 TJ/d. Mahalo North is named a high priority within the strategic review.

regulatory community update

Raises $10m via placement at $0.19 (10% discount to 5-day VWAP), about 52.6m shares, plus a share purchase plan of up to $3m at the same price. Funds Mahalo North, Mahalo pre-FID work and Albany testing. Follows cash of $9.4m at 30 Sep.

capital raising announcement

Non-binding letter of intent with Denison Gas to explore processing and transport of up to 10 TJ/d from Mahalo North via its pipeline, targeting early 2021 gas. Drilling expected before mid 2020 once approvals come. Not yet a binding deal.

material agreement

The board is starting a strategic review, with a decision due in the first quarter of 2020. The ATO has given in-principle agreement that demerger tax relief is available for the Galilee and Gunnedah exploration assets, subject to a final Class Ruling. No demerger has been decided.

other

Comet Ridge is preferred tenderer for the 450 km2 Mahalo North block, which it would hold 100% and operate, next to the Mahalo project where it holds 40%. Gas sales MOUs are signed, some with development funding options. Drilling is expected in Q2 2020. Mahalo reserves were also reviewed.

asset acquisition disposition

The Albany 1 sidetrack reached total depth of 2822 m, with strong gas shows through all four thick sandstone packages. This is the full reservoir, versus the 13 m that flowed 230,000 scf/d in 2018. Logging starts next; flow rates are not yet known.

drilling result

Shaun Scott joins the board as a non-executive director. He was CEO of Arrow Energy until its $3.5 billion sale to Shell and PetroChina in 2010. The chairman says his CSG experience suits the company's move from explorer to producer.

director officer appointment

The Mahalo JV lodged two Petroleum Lease Applications covering the initial northern development area, the first step to converting exploration tenure to a lease. If granted, leases run 30 years with production required within two years. Comet Ridge holds 40%; this advances the July development plan.

regulatory community update

Albany 2 reached total depth of 2702 m. Preliminary logs show the top 13 m of reservoir with 12-15% porosity, which Comet Ridge says exceeds pre-drilling expectations and is better than Albany 1. Flow rates are not yet known; rig moves to Albany 1 next.

drilling result

Albany 2 at 2605 m with 62 m of core, mostly sandstone with gas shows and signs of permeability; no flow rates yet. Vintage reached 30%, so Comet Ridge is 70%, with its share of Albany contingent resource now 39/107/292 PJ (1C/2C/3C). Total unchanged.

drilling progress report

Vintage completed its Stage 2 farm-in, reaching the $10m gross funding point and lifting its Galilee Deeps JV interest from 15% to 30%. Costs now split 70:30. Vintage's net Albany contingent resource is 16/43/116 Bcf (1C/2C/3C).

farm in farm out completion

APA has been granted a Survey Licence for the proposed Galilee Moranbah Pipeline, and stakeholder engagement begins, with a joint field visit planned later in August. This advances the non-binding May MOU; no binding transport agreement exists yet.

regulatory community update

Albany 2 spudded 30 July 2019 on Ensign Rig 932, after the wet-season delays. Planned depth 2752 m over 31 days, 7.5 km from Albany 1. Mud-based drilling means no instant gas rates; stimulation is now expected in Q4 2019.

drilling spud

First-pass seismic interpretation confirms a closed structure at Lake Galilee, about 20 km2 with ~60 m closure, 24 km south of Albany. Four new leads were added, and Lake Galilee-1 appears drilled on the structure's edge. More seismic is needed for several leads. No well drilled yet.

drilling result

Mahalo partners agreed an initial development: mostly dual-lateral wells in the northern Castor and Pollux seams, an 80 TJ/d modular plant, a ~65 km pipeline up to 120 TJ/d, and FID in June 2020. Comet expects first gas before end of 2021. This sets a later FID than the earlier Sept 2019 date.

joint venture update

Stanwell option deed amended and extended to 30 Sep 2022. Stanwell's GSA-or-cash choice is removed, and volume is fixed at 20-30 PJ at a market price. If no GSA is agreed, Comet pays $20m (CPI-indexed from March 2014) by 8 Nov 2021. This replaces the Sept 2019 FID deadline.

material agreement

Comet Ridge replaces its 2016 APA MOU, now including Vintage. APA will do route planning, surveys and apply for a Pipeline Survey Licence for a Galilee-to-Moranbah pipeline. It is still non-binding, so the open binding transport agreement remains unresolved.

material agreement

Martin Riley, a roughly 35-year industry veteran who led the upstream part of the APLNG project to final investment decision, joins as non-executive director. Mike Dart resigns after taking a full-time executive role elsewhere.

director officer appointment

Per Vintage, Comet Ridge as operator signed Ensign Rig 932 for Albany 2 and Albany 1 sidetrack: two firm wells plus two contingent wells, starting March 2019 after the wet season. This resolves the open rig search and commits both parties to Stage 2.

contract award

Sirius Road 2 was drilled to 1,990 m with 1,437 m in the Castor seam (96% in seam), and the rig demobilised, completing the five-well Mahalo drilling. Memooloo 2 testing meets expectations; Struan 2 and Sirius Road 1 testing starts shortly.

drilling result

Struan 3, the first dual lateral well at Mahalo, was drilled: 822 m in the Pollux (88% in seam) and 1,512 m in the Castor (95%), over 2.3 km combined. The MD expects this to be a main production well design. Rig moves to Sirius Road 1.

drilling result

Vintage says documents transferring a 15% interest in the Galilee Deeps joint venture from COI are fully executed, completing Stage 1. Vintage books 23 PJ 2C for Albany. COI is now 85% with Vintage 15%, ahead of Stage 2.

farm in farm out completion

Vintage says Stage 2 of its Galilee farm-in starts December: a $3.5m gross 300-420 km 2D seismic survey. Vintage funds 50% of a $10m program to earn another 15% (30% total, leaving COI 70%). Long-lead items for Albany 2 and Albany 1 re-entry are being bought.

farm in farm out agreement

Memooloo 2 vertical well spudded 28 October 2018, first of the 5-well Mahalo program, with target depth about 290 m. It will be cored to confirm gas content in the shallowest part of the block, then production tested for about two months.

drilling spud

COI raised $17.4m through an institutional placement at $0.34 per share, about 51.2m shares (7.6% of capital), backed by new cornerstone institutions. Funds go to the Mahalo 2018 program, Albany 1 completion, Albany 2 and seismic, plus working capital.

capital raising announcement

Stanwell's Mahalo gas option deadline for a final investment decision moves 11 months, from 20 October 2018 to 30 September 2019. The parties will negotiate a new market-priced gas sales agreement by 15 July 2019, with Stanwell's volume still up to 40 PJ.

material agreement

Comet Ridge signed Silver City Drilling's Rig 20, the rig that drilled Mira 6 in 2017, for a 5-well Mahalo program. Spud is expected mid to late September 2018, finishing November/December. COI says it is fully funded for its share.

contract award

Albany 1 flowed a stable 230,000 scf/d from a 13 m interval (2,582-2,595 m) of the Lake Galilee Sandstone, which COI calls the Galilee Basin's best gas flow to date. The drillstring stuck and drilling is suspended with about 100 m of sandstone undrilled; a larger rig is sought and an Albany 2 step-out planned.

flow test result

Mira 6/2 gas rate has passed 1.4 million scf/d with only 30 bwpd of water, above the 1.2-1.3 million COI had extrapolated in April. The Mahalo JV is finalising a multi-well program, including a long dual horizontal well, planned to spud in September.

production update

Albany 1 spudded on 19 May 2018 and was at 711 m by 21 May. It is programmed to reach about 2,775 m in roughly 25 days. It is 220 m from Carmichael 1 and is the first well in Vintage's farm-in.

drilling spud

Independent certifier MHA lifts COI's net Mahalo 2P reserves 473% from 30 PJ to 172 PJ and 3P 71% to 374 PJ, with a maiden 1P of 18 PJ. The 334 PJ gross trigger is passed, so COI can cash call Santos for $1.348m of 2017 costs.

resource reserve update

All conditions are met for Vintage Energy's farm-in to the Galilee 'Deeps' (sandstone below the coals); the joint venture and co-ordination agreements are finalised. Vintage's roughly $8.5m earns up to 30%, and Albany 1 is expected to spud next month. COI keeps 100% of the coal 'Shallows'.

farm in farm out completion

Mira 6/2 gas flow passed 625,000 scf/d, now above the 2016 Mahalo pilot's output, which had 361 m in coal against Mira's 924 m. Management calls Mira the best performing pilot in the block and expects further increases. The reserves upgrade is still pending.

production update

The Share Purchase Plan drew over $4.4m of applications against a $3m target, and was scaled back to about $3.1m at $0.235. Together with the $10m placement, this completes the November raising; new shares are allotted 1 December.

capital raising announcement

Mira 6 finished at 1,283 m along the well, with about 920 m in coal (99.6% in coal), and the rig is released. Mira 2 will be pumped again within a week. Built in 11.2 days against a 12-14 day plan, the well adds drainage to the Mira pilot.

drilling result

Mira 6 intercepted the Mira 2 vertical well. It reached 777 m along-hole, with about 415 m of coal drilled and the well path 100% in coal. Drilling continues south-southeast to lengthen the horizontal section.

drilling result

Comet Ridge raised $10m through a placement of about 42.6m shares at $0.235, a 14.5% discount to the 5-day VWAP, and offered a Share Purchase Plan of up to $3m at the same price. Funds go to Mahalo, the Albany appraisal and working capital. The price is well above June's $0.125 raising.

capital raising announcement

The Mira 6 horizontal well spudded on 2 November 2017, as delayed from October. Surface hole was drilled to 42 m and cased. It is designed to intersect the Mira 2 vertical well and speed up gas and water production, using Silver City Rig 20.

drilling spud

Private firm Vintage Energy agreed to fund about $8.5m of an up-to-$15m program to earn 30% of the deep sandstone targets in Comet Ridge's three Galilee permits, starting with the Albany 1 well. Subject to conditions within 12 weeks, including Vintage raising funds. Comet keeps 100% of the coal.

farm in farm out agreement

Pressure tests show under-reaming cut damage around the Mira 3, 4 and 5 wells: skin values fell from 74, 56 and 41 to 2.5, 7.7 and 3.0. Mira 5 is making steadily rising gas. Mira 6 is still due to spud in October.

drilling result

Humboldt South 1 reached 326 m, hit about 8.4 m of net coal with gas bubbling from core and measured permeability, and was within budget. The three under-reamed Mira wells are back online. The Mira 6 horizontal well is expected to spud in October.

drilling result

Humboldt South 1 corehole spudded on 26 August 2017, 6 km east-northeast of Mira, with casing cemented at 131 m. It targets about 280 m depth to gather data for an updated Mahalo 2P/3P reserves assessment. It is the first well Comet Ridge has drilled as Santos's agent.

drilling spud

TDC Drilling won the drilling contract for the 2017 Mahalo work program, using two rigs: one to under-ream the Mira wells, then one to drill the Humboldt South 1 corehole. Equipment is due by end-July, so field work should start in late July as previously guided.

contract award

Comet Ridge raised A$5.3m through an oversubscribed institutional placement of 42.4m shares at A$0.125, a 15% discount to the 30-day VWAP, up from the A$0.05 raising in late 2016. Funds the Mahalo 2P reserves program; field work is expected to start before end-July.

capital raising announcement

The Mahalo JV unanimously approved the amended 2017 work program, resolving the open item on the 2017 work program. It covers under-reaming the four Mira vertical wells, one step-out corehole northeast of Mira, and studies. Field work is expected to start in the second quarter.

joint venture update

Santos appoints Comet Ridge agent to manage Mahalo subsurface work to end-2018, ending the earlier JV deadlock on further work. Programme is capped at about A$5m gross; no cash call on Santos until a gross 2P upgrade of at least 334 PJ. Comet is exploring gas pre-payments to fund its share.

joint venture update

The entitlement offer closed oversubscribed, raising A$1,052,515 at A$0.05. A further A$402,065 placement meets excess demand, taking the total to A$1,454,580 for 29,091,607 shares, with some excess applications scaled back. Cash rises to about A$2.96m before costs.

capital raising announcement

Michael Dart joins the board as an independent non-executive director, effective 14 October 2016. He has over 20 years in M&A and finance, including 7 years at EY as east coast oil, gas and resources M&A lead. This fills the open non-executive seat.

director officer appointment

Comet Ridge launched a raise of about A$2m at A$0.05 a share: a A$1.0m placement of 20m shares plus a 1-for-25 entitlement offer for up to about A$1.05m. The price is a 28.6% discount to the last trade of A$0.07. Funds go to working capital.

capital raising announcement

Non-binding MOU with APA Group to work towards APA building and owning pipelines to carry gas from Comet Ridge's Galilee Basin permits to east coast markets. No commercial terms are agreed yet. It supports the Albany and Gunn development case.

material agreement

March quarter: Mahalo 5 and Mahalo 4 verticals restarted, lifting total pilot gas rate to a record 464,000 scf/d. Comet Ridge agreed to acquire QER's interest in ATP 1015, taking it to 100%, with about A$250,000 cash paid to Comet Ridge. This reverses its earlier 20% stake with no Phase II funding.

quarterly activities report

MHA certified a Mahalo reserve upgrade for Comet Ridge's 40% share: 2P up 36% to 30 PJ and 3P up 77% to 219 PJ, from 22 and 124 PJ in 2014. Contingent resources fell (2C 232 PJ) as volumes moved to reserves. Delivers the upgrade the chairman flagged.

resource reserve update

Mahalo 6/7 single-well gas rate passed 200,000 scf/d after October pump speed increases, the first gas rate disclosed since the pump restart. Management says the short 360 m well shows scope for more; the vertical wells will be brought back on line in turn.

production update

SRK certified a first conventional gas contingent resource for the Carmichael structure in ATP 744 (100% COI): 56 PJ 1C, 153 PJ 2C, 417 PJ 3C. This adds a new resource type in the Galilee Basin, beyond the Gunn coal seam gas. Further drilling is needed to prove flow rates.

resource reserve update

Mahalo 7 reached 775 m total measured depth and intercepted the Mahalo 6 vertical well, after drilling about 360 m of coal. Gas was seen while drilling and conditions were good. Production only follows once Mahalo 6's pump is reinstalled, so gas rates are not yet known.

drilling result

Mahalo 7, the first horizontal well at Mahalo, spudded on 6 November 2014 after the A$8m placement. It will drill about 500 m through coal at roughly 230 m depth to meet the Mahalo 6 well, taking about two weeks. Comet Ridge holds 40%; Santos operates.

drilling spud

Comet Ridge raised A$8m through a placement of 59.3m shares at A$0.135 (11.4% of shares on issue), plus a Share Purchase Plan of up to A$2m. Funds go to Mahalo appraisal, starting with a horizontal well due to spud in November 2014.

capital raising announcement

First independently certified Mahalo reserves: 22 PJ 2P and 124 PJ 3P (COI net, 40% basis pending JV consent). Contingent resources rise to 208/328/468 PJ (1C/2C/3C) from 83/221/442 PJ. This resolves the long-slipped reserves target; 2P covers under 5% of the block.

resource reserve update

Harrington 1 reached 1042 m and intersected about 19 m of net coal, with gas seen bubbling from core. It was cased and suspended. This matches the 16-24 m seen in other eastern Galilee wells, supporting coal continuity; core analysis is pending.

drilling result

Stanwell hands back its 5% Mahalo interest and drops its option over a further 35%, restoring Comet Ridge to 40% (subject to JV consent). In return, at final investment decision Stanwell takes either a 20-40 PJ gas sales agreement or A$20m cash. No payment before then.

asset acquisition disposition

Comet Ridge raised A$9m through a placement of 50 million shares at A$0.18, a 21.7% discount to the last close, lifting cash to about A$13m. Funds go to the Mahalo work-overs and operations. The first 2P reserves target slips to the first quarter of 2014.

capital raising announcement

Pressure surveys confirm Mahalo pilot wells are less productive than when drilled in 2012, so a work-over rig is required; two wells still flow gas. Mira's high productivity is confirmed, but Mira 3 is off-line with a pump failure needing a work-over. Santos will operate the work.

production update

Mira pilot, the second Mahalo pilot, is on-line with three of four wells pumping water; gas is expected only after months of dewatering. At Mahalo, two wells flow gas but productivity is below 2012 tests, so remedial stimulation may be needed. Reserves booking later in 2013 'remains on track'.

production update

Petrel Energy announced completion of the sale of its PEL 6, 427 and 428 interests to Comet Ridge's subsidiary; ministerial approval came 10 May 2013. This resolves the Gunnedah purchase (A$750k, signed June 2012) that had awaited NSW consent, lifting COI to 22.5%, 50% and 60% CSG interests.

asset acquisition disposition

The Mahalo field pilot came on-line late the previous week, with one of four wells immediately flowing gas. This is the first gas from the pilot after nine months of work; rates will be tracked as wells stabilise. Mira is expected on-line within weeks.

production update

Mira 2 reached 320 m with about 9.1 m of net coal, completing the four-well Mira pilot programme. The Mahalo JV will run two pilot schemes (Mahalo and Mira) aimed at early reserves certification. Four step-out core holes follow, starting with Scrubber Gully 2.

drilling result

The Gunn 2 Extended Production Test began 11 January in the Galilee Basin, flowing over 120 barrels of water a day from one four-metre coal interval with minimal pressure drop. It is the company's first test on a completed Galilee well; the test will run for months before pilot design is finalised.

production update

Cernan 1 reached 875 m with 20.6 m of net coal and was cased and suspended. The Gunn Project Area's eastern edge is still undefined. This completes Stage 1 of the QER farm-in and the 2012 Galilee programme, earning 20% of the 825 km2 farm-in area.

drilling result

Schmitt 1 reached 1,005 m with about 22 m of net coal. Early gas readings and testing show the Gunn Project Area extends east into the farm-in block, in excess of 1,400 km2. Cased and suspended as a future producer; Cernan 1 spuds next.

drilling result

Gunn 2 reached 1,050 m with 16.2 m of net coal; all four coal intervals flow-tested showed good to excellent productivity. It will be completed for an Extended Production Test, a step ahead of the 2013 pilot. Rig moves to Schmitt 1, then Cernan 1.

flow test result

Gunn 2 spudded 10 October 2012 in 100%-owned ATP 744P, targeting about 1,050 m, starting the three-well Galilee campaign. Schmitt 1 and Cernan 1 in the Lake Galilee farm-in area follow. The spud is a month later than the September guided earlier.

drilling spud

The retail offer raised about A$3.1m, with applications for 84% of shares offered. Total equity raised is about A$9.4m at A$0.10, above the A$7.7m first targeted. The underwriter was not called on.

capital raising announcement

The institutional offer raised A$3.8m and, on strong demand, a A$2.5m placement was added, both at A$0.10. Wilson HTM underwrites the first A$1.8m of the retail offer, so at least A$8.1m is now assured, up from the A$7.7m target.

capital raising announcement

Comet Ridge launched a 1-for-4 accelerated non-renounceable entitlement offer at A$0.10 per share to raise up to A$7.7m, a 20% discount to the last price of A$0.125. It funds 2012/13 exploration and working capital; about 77.1m new shares, roughly 25% dilution for those not taking up.

capital raising announcement

Mahalo 5 finished the four-well pilot programme, with 6.8 m of net coal in the Castor-Pollux seam and very good permeability; all four wells showed good coal continuity. Pilot facilities are to be built for commissioning in late 2012, then the Mira pilot and four core holes follow.

drilling result

Comet Ridge signed a three-stage farm-in with Queensland Energy Resources to earn up to 75% of an 825 km2 area (Lake Galilee, in ATP 1015P) next to its Gunn Project Area. Stage 1 gives 20% for two wells by 30 November 2012; first Galilee well due to spud in September.

farm in farm out agreement

Mahalo 3 reached 300 m with about 8 m of net coal, 7 m in the main Castor-Pollux seam. Flow testing showed enough permeability to use it as a pilot production well. Mahalo 6 spudded 22 July after rain changed the drilling order.

drilling result

Mahalo 3 spudded 10 July 2012, the start of the 2012 Mahalo programme, targeting about 300 m depth in the shallow Bandanna coals. Stanwell covers Comet Ridge's share of cost; the CEO says A$1m per PJ of 2P reserves booked at end 2013 is possible if Stanwell buys the 35%.

drilling spud

Comet Ridge agreed to pay A$750,000 to Petrel Energy for interests in PEL 6, PEL 427 and PEL 428 in the Gunnedah Basin. CSG stakes rise to 50% in PEL 427 and 60% in PEL 428, plus 22.5% of PEL 6. Subject to due diligence and consents.

asset acquisition disposition

Comet Ridge's 17.257%-owned US company agreed to sell the Florence oil field for US$12.25m, expected to close 29 June 2012. The Yeti well in Washington's Grays Harbor is due to spud late June. It also added Rockies acreage in Colorado and the Northern Rockies.

joint venture update

The Stanwell sale of 5% of Mahalo completed: Comet Ridge receives A$7m cash and drops to 35%. Stanwell carries up to A$8m of costs and holds an option on a further 15% or 35%. First pilot well slips from December 2011 to Q1 2012 because of the wet season.

farm in farm out completion

Comet Ridge agreed to sell 5% of its 40% Mahalo interest to Stanwell for A$7m. Stanwell also gets an option on a further 15% or 35% in return for funding up to A$8m of costs, priced at A$0.80 and A$1.15 per GJ of 2P reserves. Needs partner consent.

farm in farm out agreement

First certified gas resource for New Zealand: Greymouth Coalfield, 100% owned, has 65 PJ 1C, 127 PJ 2C and 244 PJ 3C of recoverable contingent resource (NSAI). This is Comet Ridge's fourth certification since October 2010; 2012 drilling targets are being selected.

resource reserve update

New Zealand regulators extended Comet Ridge's West Coast permit PEP 50279 to 4,802 km2, linking it with the adjoining 100%-owned PMP 50100. This gives one continuous Greymouth-area gas exploration block. West Coast drilling is now planned for late 2011 or early 2012.

regulatory community update

Santos agreed to acquire Eastern Star Gas, operator of Comet Ridge's PEL 427 (25%) and PEL 428 (40%) permits. Comet Ridge expects technical work to continue as usual and sees better chances to commercialise its gas. Seismic and a Bellata well are still planned for 2011.

business combination

Comet Ridge will receive about US$3.5m from the Sweet Pea sale proceeds, the first cash distribution from its US venture. This completes the May sale step; the 2008 structure lets Comet Ridge hold US exposure without funding more cash.

asset acquisition disposition

The US venture's Florence oil field reached a record average above 1,100 barrels a day after five of six April-May appraisal wells were completed for production. This is up from 631 bopd in Q1 2011. Comet Ridge owns 17.257% of the venture.

production update

Comet Ridge Resources LLC, in which Comet Ridge holds 17.257%, signed a binding deal to sell its Sweet Pea exploration area in Colorado for US$28.5m to an undisclosed buyer. This releases cash from the US venture; it keeps the Florence oil field (631 bopd in Q1) and Grays Harbor plans.

asset acquisition disposition

March quarter: PEL 428 purchase from Greenpower completed 28 April, doubling the stake to 40%. Net PEL 427/428 resources are 231 PJ contingent and 1,022 PJ prospective. Mahalo 2011 budget approved with a first pilot; Galilee seismic is now targeted for Q3 because of floods; Bellata well moved to Q3 2011.

quarterly activities report

Operator Eastern Star Gas released the first independent resource estimate for PELs 6, 427 and 428; the table lists PEL 427 (COI 25%) and PEL 428 (COI 20%, plus the 20% being acquired). Total contingent resources across the permits are 1,011 PJ and prospective 4,637 PJ, but COI's share is not stated.

resource reserve update

First Galilee certification: the 100% owned Gunn Project Area in ATP 744P has 67 PJ 2C and 1,870 PJ 3C contingent resources plus 597 PJ prospective, about 2,500 PJ in total. This follows the 2010 drilling; seismic is likely in 2011 before the next campaign.

resource reserve update

Comet Ridge's first certified resource: Mahalo (ATP 337P, 40% with Santos and APLNG) has 83 PJ 1C, 221 PJ 2C and 442 PJ 3C contingent gas net to COI. It aims to establish 2P/3P reserves by late 2011; a Galilee booking is also being worked on.

resource reserve update

Comet Ridge signed a binding agreement to buy Greenpower's 20% of Gunnedah Basin permit PEL 428, lifting its stake from 20% to 40%. Price undisclosed; subject to due diligence, completion within 60 days of share sale agreement (due 29 Oct). Seismic planned early 2011.

asset acquisition disposition

Macdonald 6P, the second Greymouth pilot well, reached 822 m with 5.4 m of gassy coal. Permeability was lower than expected and it would not produce commercially, so it is being plugged and abandoned. This contrasts with the encouraging Macdonald 4P result.

drilling result

Gunn 1 reached 1,031 m with 17 m of coal and 10 m of shale; results resemble Hergenrother 1. The Galilee core drilling programme ends and the rig is released, moving to months of data analysis and a resource assessment before any pilot decision.

other

Macdonald 4P is completed for production testing, and Phase 2 farm-in conditions are met. Chartwell NZ's interest in PMP 50100 rises from 20% to 50%, with the extra 30% being released from escrow. Rig now prepares for Macdonald 6P.

farm in farm out completion

Macdonald 4P, the first Greymouth pilot production well, reached 1,263 m with 18 m of coal in the Brunner and Paparoa formations. It will be completed for production; the rig then moves to Macdonald 6P. Power-generation feasibility studies are under way.

drilling result

Macdonald 6P, the first of two Greymouth pilot production wells, spudded 30 March, targeting up to 1,200 m in the Brunner and Paparoa coals. In the Galilee, the next well is moved to Montani 1 because roads to Tuttle 1 are poor.

drilling spud

Shoemaker 1 reached 698 m, found about 20 m of coal in the Betts Creek Beds and ran two drill stem tests. Lab analysis follows. Rig released 29 January; the move to Tuttle 1 is delayed by cyclone Olga rain.

drilling result

Skiff 1 finished at 1,414.3 m in the mid Betts Creek coals. Deteriorating hole conditions meant wireline logs and drill stem tests could not be run, so data is limited to coal depth and gas content. Rig moves to Catalina 1.

drilling result

Macdonald 5C finished and the rig was released on 28 November. It cut about 3.5 m of Main Brunner coal and was drill-stem tested, but drilling problems at 806 m stopped it short of the planned 1,170 m. It is suspended as an observation well; pilot wells follow in early 2010.

drilling result

Skiff 1, the first of eight Galilee core holes, started on 22 November in ATP 743 (100% Comet). Planned to 1,250 m to core the Permian Betts Creek coals, it was at 154 m. Results feed the 36 TCF gas-in-place estimate.

drilling spud

James McKay's appointment as chairman is confirmed after his re-election at the AGM on 11 November, as announced on 6 October. This completes the planned handover from Jeff Schneider.

director officer appointment

Macdonald 5C core well started at Greymouth (PMP 50100) on 30 October, planned to about 1,170 m over roughly 20 days. Part of the Phase 2 farm-in, which would lift Comet's stake from 20% to 50%. It may be plugged or kept as an observation well.

drilling spud

Queensland awarded ATP 744 to Comet Ridge, resolving the open award wait. With ATP 743, the company holds 100% of about 13,000 sq km in the Galilee Basin. The eight-well core hole program is due to start in November, to update the 36 TCF gas-in-place estimate.

regulatory community update

Tony Gilby joins as non-executive director on 6 October. Jeff Schneider will step down as chairman after the 11 November AGM, to be succeeded by James McKay, subject to re-election. Schneider stays on the board.

director officer appointment

Drilling contract signed with Atlas Drilling to drill the eight Galilee core holes, with the rig expected to mobilise in November. Separately, a dispute arose over who operates NZ's PMP 50100; ATP 744 award is still awaited.

contract award

Queensland awarded ATP 743 (6,476 sq km, 100% Comet Ridge) on 4 September, resolving the native title wait. An eight-well core hole program is planned for the December quarter; ATP 744 award is expected soon. Targets the 36 TCF gas-in-place estimate.

regulatory community update

Scrubber Gully 1 reached 486 m and was plugged and abandoned as planned, with about 4.5 m of net coal in the Bandanna Formation. Management calls gas content good and permeability fair; the partners will plan the next Mahalo appraisal. COI holds 40%.

drilling result

The entitlement offer closed with about 70% take-up (about A$9.55 million); 15.87 million shortfall shares go to underwriter Wilson HTM, so the full A$13.8 million is still raised. With the A$7.5 million placement, this funds 12-18 months of work.

capital raising announcement

Comet Ridge raises A$7.5 million from a placement of 22 million shares at A$0.34, plus an underwritten 1-for-5 entitlement offer at A$0.27 to raise about A$13.8 million. Total about A$28 million cash, to fund Galilee, Mahalo and New Zealand for 12-18 months. Resolves the funding problem.

capital raising announcement

Comet Ridge agrees to merge with unlisted Chartwell Energy, which has about A$8m cash and New Zealand coal seam gas permits. Chartwell holders get about 128m shares, 55% of the merged company. Tor McCaul becomes MD; Lydyard and Drobnack leave. Shareholder vote expected late March. This answers the funding problem.

business combination

Managing Director Bradshaw resigned after about 10 weeks, with no termination payment, and Chairman Schneider becomes Executive Chairman. Cash is about A$750,000; the board says the October market collapse stalled farm-in partners and equity raising. Non-executive directors forgo fees; Bradshaw option resolutions withdrawn.

director officer appointment

Pine Brook invested a further US$9.65m in Comet Ridge Resources on 26 August, lifting its stake to 72.42%. COI's interest fell from 43.75% to 27.18%. Funds drilling, seismic, leases and costs. COI paid nothing; this is dilution in CRR.

capital raising announcement

David Bradshaw, a non-executive director and former Tipperary CEO, becomes Managing Director from 1 September 2008, based in Brisbane, to grow the Australian business. Andy Lydyard becomes non-executive director and CEO of Comet Ridge Resources. Bradshaw gets US$320,000 salary and 4.5m options at A$0.25.

director officer appointment

Golden #33-20 stopped early at 3,606 feet, short of the 4,926 feet plan, because of difficult drilling conditions and strong oil shows in the Pierre Formation. Liner is being run for production testing. Pine Ridge has now earned its 97.25% Florence interest.

drilling result

First Florence well, Golden #33-20, is drilling at 696 feet toward a 4,926 feet target after a few days' delay from Colorado rig-moving restrictions. No hydrocarbon indications yet. CRR pays all costs; COI holds 43.75% of CRR, which holds 97.25% of Florence.

drilling spud

The Pine Brook deal closed on 26 June 2008, as expected by end-June. COI's US projects went into Comet Ridge Resources for 43.75%; Pine Brook put in US$7m cash plus the Strike Oil Rocky Mountain assets bought for US$2m for 56.25%. US staff now work for CRR; Florence drilling starts this weekend.

farm in farm out completion

Comet Ridge will contribute its US assets (valued at US$7m) to a new Pine Brook-backed company, Comet Ridge Resources, for 43.75% of its equity. Pine Brook holds 56.25% and can fund up to US$100m, rising to 80%. Closing is due by end-June, with a bridge loan; US staff move across. Australian assets stay.

business combination

Freedom Natural Resources withdrew from the Tow Creek/Bear River farm-in announced on 19 March, giving no reason. This leaves the funding of the next Tow Creek wells unresolved; Comet Ridge has started talks with other interested parties.

material agreement termination

Letter of intent with Freedom Natural Resources: Freedom would fund a new Tow Creek crest well (start by 1 July) and a Peltier 11-12 re-entry, and become operator. Comet and Strike's combined interests would fall to 20% (Tow Creek) and 12.5% (Bear River). Closing expected by 28 March.

farm in farm out agreement

St. Helens signed a deal with Oklaco's consortium on Chehalis: it sells 75% of its 40% interest (keeping 10%), gains 10% of another 65,000 acres, and gets US$463,064 cash plus a free carry on 5 wells. Drilling is expected in Q2 2008, resolving the earlier Vader delay.

farm in farm out agreement

Comet Ridge withdrew the 1-for-4 entitlement issue at A$0.165 (up to A$4.3m) announced on 18 January, citing positive US business developments. Directors will review capital spending and reconsider any future raising. No money was raised.

capital raising announcement

Comet Ridge launched a non-underwritten 1-for-4 entitlement issue of up to 26.2m shares at A$0.165 to raise up to A$4.3m, a 16% discount to the 10-day VWAP. Funds go to Florence drilling and Grays Harbor seismic. There is no minimum; a shortfall may mean fewer wells.

capital raising announcement

Transfers to Orion Petroleum of an initial 30% of PEL 427 and 20% of PEL 428 (Gunnedah Basin) from Comet Ridge were registered on 24 December 2007, under a 3 October 2007 deed. Orion has options to earn a further 45% and 40%. This is the sell-down of the Gunnedah interest.

farm in farm out completion

Comet Ridge won four Grays Harbor County leases covering 17,225 acres at an average US$7.13 per acre, bringing its holding to over 475,000 acres. Leasing is now complete. Seismic is planned for 2008 with two wells, and a partner search can now be marketed.

asset acquisition disposition

David Bradshaw, a Denver-based former CEO and chair of Tipperary Corporation (sold to Santos in 2005 for about A$600m), joined the board immediately. The company expects him to broaden its reach into US capital markets and deal flow.

director officer appointment

The Tow Creek Coal View 31-4 sidetrack was abandoned after the drill string became irretrievably stuck following almost a week of rig repairs. It is plugged for a later sidetrack with another rig. Oil and gas shows remain untested; partners must reassess the way forward.

drilling result

Pure Energy has given notice that it will exercise its option to buy the Tipton West royalty for A$3 million, with proceeds expected that week. This completes the sale announced 14 June and funds US exploration. The text is marked DRAFT.

asset acquisition disposition

Comet Ridge agrees an option to sell its Tipton West royalty to Pure Energy for A$3 million, subject to due diligence by 29 June. The royalty was capped at A$8m and would take many years to collect. Proceeds are to fund US exploration.

asset acquisition disposition

Comet Ridge lifts its Florence interest from 26% to 39% after AJ Lucas Group withdrew from US exploration; Strike Oil also rises to 39%. Increases exposure to the field ahead of 3D seismic and drilling planned late in the third quarter.

farm in farm out completion

Peltier 11-12 produced clean new oil but at low rates, and is shut in for a pressure build-up test. The company says this is inconsistent with logs and suggests the fractures may be plugged near the well bore. Remedial options are described as inexpensive.

well test result

Comet Ridge farms out its 100%-owned Galilee Basin permit applications ATP 743P and 744P (over 13,000 sq km) to Clark Oil and Gas. Clark can earn up to 40% and carry Comet Ridge through seismic and drilling. Conditional on Clark listing on the ASX later this year.

farm in farm out agreement

Efforts to free the stuck pipe at Coal View 31-4 were abandoned. The company plans to re-enter after the spring thaw and redrill the last ~2,000 ft (3-4 days). Pump install at Peltier 11-12 due this week. Resolves the fishing thread negatively.

drilling result

Tipton West gas sales began, ahead of schedule. Comet Ridge's 1.5% royalty, sold to Arrow in 2005 and capped at A$8m, is forecast to earn about A$200,000 a year once the field reaches 27 TJ/d by end 2007.

production update

Operator Cascadia has secured a rig for a three-well Vader programme in Washington, expected to start before the end of March. Wells will be 1,600-2,700 ft deep; permits are expected by early March. Comet Ridge holds 40%.

drilling scheduled

Peltier 11-12 reached 6,700 ft on 31 January; all three Niobrara targets appear fractured with oil and gas shows, including free oil in the mud. Coal View 31-4 remains stuck. Drilling resumes in the second quarter.

drilling result

Coal View 31-4 reached 6,600 ft on 25 December with oil and gas shows in the two reservoir intervals reached. The main target, the second Niobrara bench, showed gas readings over 245 ft and looks moderately to intensely fractured, so it will be completed in January. No flow rate yet.

drilling result

The shortfall of 11.48m shares was fully placed, so the entitlement issue raised the full $7.66m before costs at 27 cents. About 28.4m shares and 14.2m free 40c options are issued, taking capital to 99.8m shares. Directors put in over $540,000.

capital raising announcement

The entitlement issue closed with acceptances and shortfall applications raising $4.56m before costs at 27 cents, short of the $7.6m maximum. Tolhurst Noall is mandated to place the remaining 11.48m shares, worth $3.10m, resolving the open entitlement thread.

capital raising announcement

Coal View 31-4 was spudded at 3:30 pm on 16 November, after delays from a winter storm. It is the first well of the Tow Creek program, expected to take about 30 days to drill and 5-10 to complete. Weekly Friday updates are promised.

drilling spud

Comet Ridge announced a 2-for-5 non-renounceable entitlement issue at 27 cents, raising about $7.6m if fully subscribed (28.29m shares). Each two shares issued carry one free 40-cent option expiring 29 June 2007, and funds go to Tow Creek, Bear River, Florence, Washington, Grays Harbor and Mahalo work.

capital raising announcement

St Helens acquired a 40% interest in a new lease of 25,664 acres over the Vader prospect in southern Washington. Total Vader/Cedar Creek acreage now exceeds 156,000 acres, with drilling planned for late 2006 to early 2007 by operator Cascadia.

asset acquisition disposition

Strike Oil and AJ Lucas both took up their full options in Florence, so Comet Ridge keeps a 26% interest and stays operator, down from the 78% bought on 3 October. 3D seismic is expected to start in December, with the first well required by 1 August 2007.

farm in farm out completion

Comet Ridge won 51 Washington State leases covering 18,159 acres at an average US$6 per acre, largely next to its 420,000-acre Grays Harbor option. It says a five-well, 25 BCF discovery would be worth nearly US$50m (internal estimate); new seismic is planned early 2007.

asset acquisition disposition

Cyclone Drilling Rig 16 is contracted for a three-well Tow Creek/Bear River program, with the first well, Coal View 31-4, to spud by 10 November. It resolves the rig search, with Peltier 11-12 and Coal View 18-14 (permit-dependent) to follow. Cost is about $1.8m per well.

contract award

Comet Ridge USA acquires a 78% interest and operatorship of 4,678 acres of the historic Florence oil field, Colorado, for about US$650,000 covering cash, 3D seismic and one ~4,000 ft well. Drilling must start by 1 August 2007. The deal is to be offered to Strike Oil and AJ Lucas.

asset acquisition disposition

First Tow Creek drilling permit received for the Coal View Unit State 31-4 well (37.5%), with surface hole to start this week. It costs US$1.7 million and targets 200,000-500,000 barrels recoverable. A two or three well program is expected in October; leases now exceed 16,000 acres.

drilling scheduled

The 4,287-acre Coal View Federal Exploration Unit at Tow Creek was approved effective 1 September 2006, resolving the pending approval. It requires a first well by 1 March 2007 and extends the term of a number of leases.

regulatory community update

Mahalo 2 reached 234m but showed no measurable gas or water flow, suggesting low permeability or drilling damage, which contrasts with Mahalo 1's gas influx. Comet Ridge still earned its 40%, with Santos and Origin at 30% each. Pressure data will be analysed.

drilling result

Mahalo 2, previously delayed, is due to spud by the end of August. It is the final well Comet Ridge must drill to earn a 40% interest, with Santos and Origin keeping 30% each. Resolves the delay flagged earlier.

drilling scheduled

Tow Creek and Bear River drilling, earlier expected by end of May, is delayed to late August/September 2006 because landowner access negotiations are taking longer. Plan is four wells, three at Tow Creek and one at Bear River, seeking 200-400 thousand barrels each.

drilling scheduled

Closed the Grays Harbor lease option: 420,000 acres, 100% and operator, for a $400,000 upfront payment plus $650,000 of committed exploration work. Leads of 50-250 Bcf each; drilling targeted late 2007. Resolves the delayed closing; Comet Ridge now has about 475,000 US acres.

asset acquisition disposition

Completed the $120,000 purchase of the producing Tow Creek oil well and 640-acre lease announced 16 May. It makes about 2 barrels a day and is Comet Ridge's first operated US production. Comet Ridge ends with 37.5% after partners take their shares.

asset acquisition disposition

Agreed to buy a producing well, Grassy Creek 1-36, and a 640-acre lease at Tow Creek for $120,000, closing 1 June. The well makes about 2 barrels a day. Partners Strike Oil and Lynn Properties intend to participate.

asset acquisition disposition

Allotted 9.17 million shares at 28 cents to Tolhurst Noall, raising $2.567 million, completing the placement announced 21 April. This is new equity, adding to the 61.4 million shares on issue and extending the cash runway.

capital raising announcement

Comet Ridge's US subsidiary signed a letter of intent for a two-year lease option over 420,000 acres of the Grays Harbor Basin, Washington, for about $1 million in fees and work commitments. It has 15 mapped leads. Definitive agreements are expected by late April.

asset acquisition disposition

Comet Ridge signed a letter of intent to take 100% of 968 net acres at the new Bear River oil prospect, west of its Tow Creek project in Colorado. Partners Ponder (25%) and Strike Oil (37.5%) intend to join. Drilling is planned for the second quarter of 2006.

asset acquisition disposition