- The Mahalo joint venture has officially lodged two applications to mine petroleum gas at the Queensland-based Mahalo project
- Once approved, it’s expected that the leases will cover a 30-year term and spark production within two years of the grant date
- The move is seen as a way to transition the tenement from an exploratory play into a long-term gas mine, accelerating the proposed development plans
The Mahalo joint venture has officially lodged two applications to mine petroleum gas at the Queensland-based Mahalo project.
The move is seen as a way to transition the tenement from an exploratory play into a long-term gas mine, accelerating the proposed development plans.
Both leases cover territory to the north of the Mahalo tenement, encompassing three-quarters of the prospect’s coal seam gas (CSG) wells. Proposed works include targeting the Castor and Pollux gas seams and creating a moderately-sized gas plant to process the resource.
Once approved, it’s expected that the leases will cover a 30-year term and spark production within two years of the grant date.
Comet Ridge teamed up with APLNG and Santos to drill the project’s first four wells in 2012 and has since prospected over 50 shallow coal exploration holes.
As gas is produced on-site, equity will be split amongst the joint venture parties.
Comet Ridge will earn 40 per cent of the profits and both ALPNG and Santos will walk away with 30 per cent each.
Comet Ridge’s Managing Director Tor McCaul said he was extremely pleased the joint venture had lodged the petroleum leases.
“Accessing only the Castor and Pollux seams at first will see fewer wells drilled as part of a more efficient initial development than originally envisaged,” Tom noted.
The remainder of the Mahalo block could be commercialised at a later date, with all parties intending to lodge applications and turn the tenement into a potential commercial area (PCA).
Work is also underway to file the necessary environmental applications with the Australian Government to get production at the site up and running.