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- Unclear gas reservation policy impacts Mahalo plans
- Finalisation of purchase agreement set back by three months
- Comet and Santos collaborating on settlement of purchase
Comet Ridge (ASX:COI) has been forced to significantly change details related to its proposed acquisition of a significant energy project due to market uncertainty surrounding the federal government’s gas reservation policy.
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The company had received significant interest from potential funding backers since announcing its plans to grab Santos’ 42.86% interest in the Mahalo Gas Project (MGP) in mid-December 2025.
However, the positive news was then impacted by the lack of details related to the government’s recent announcements on east coast gas reservation.
This led to Comet and Santos working together to restructure the terms of the acquisition agreement.
This included Comet significantly reducing the up-front cash component of the transaction and extending the completion date by three months.
MD, Tor McCaul, said with revised terms now in place, Comet is confident it can use the time to execute a funding mechanism to complete the acquisition agreement.
“I would like to thank Santos for their collaborative approach with Comet. Whilst Mahalo is not of a scale to be a priority within the portfolio of a large producer like Santos, it is good to see a leading oil and gas company be supportive of the endeavour of a junior gas company like Comet, which is committed to bringing the project into production at a time when Australia needs it.”
Mr McCaul said that it is hoped there may be more clarity around the operation of the reservation policy.
He said, once completed, the acquisition will provide Comet Ridge with 100% ownership of a large and strategic position in the East Coast gas market.
“The Mahalo Gas Hub comprises a compelling development with a large acreage position and gas reserve, production licences in place and front -end engineering and design (FEED) work nearly complete.
“By consolidating 100% ownership, Comet Ridge unlocks several valuable commercial and practical benefits including increasing 2P Reserves and 2C Resources to 677 PJ across the Mahalo Gas Hub.
“It will also enhance the company’s ability to optimise the planning and sequencing the development of the Mahalo Gas Hub.”
COI is up 23.8% to 13.0¢. Mkt cap $125.6M.
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