Comet Ridge gets A$5mn grant for pilot test in Mahalo East block in Queensland

Australian gas explorer Comet Ridge has been awarded an A$5mn ($3.3mn) grant from the Queensland government to undertake a pilot test in its 100% held Mahalo East block (ATP 2061), it said on May 10.

Mahalo East boasts independently certified 2C (31PJ) and 3C (122PJ) contingent resources, positioning the project for development. The pilot test, funded by the Queensland government's Frontier Gas Exploration Programme, aims to further assess the potential of the Mahalo East block. The Queensland government has made a total of A$21mn available under the programme to support exploration in the Bowen Basin. 

Comet Ridge plans to utilise the grant to drill and test a new pilot scheme, which includes a vertical production well and a lateral (horizontal) well at Mahalo East. This pilot, similar to Comet Ridge's successful Mahalo North pilot, will trial enhanced steering technology to improve lateral well length and design. The application of this technology has the potential for broader implementation across the Mahalo gas hub and the Bowen Basin. Operations for this pilot program are scheduled to commence next quarter, the company said.

The Mahalo gas hub area, where Comet Ridge operates, encompasses the Mahalo gas project, Mahalo North, Mahalo East, and Mahalo Far East. 

In a statement regarding the grant funding program, Queensland resources minister Scott Stewart highlighted the importance of additional gas supply to ensure the reliable flow of gas to Australian homes and businesses.

Comet Ridge managing director, Tor McCaul, commented, “The steering technology we plan to utilise for the Mahalo East lateral (horizontal) well will aid in the assessment of the optimum well length and design that can be applied across our entire Mahalo gas hub. Longer lateral wells equate to less wells required for development and less surface impact and cost.”