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http://www.canberratimes.com.au/bus...y-more-than-400-per-cent-20180306-p4z343.html

Gas field boosts its reserves by more than 400 per cent


Santos, Origin and junior gas player Comet Ridge have boosted the NSW's Mahalo coal seam gas project's reserves by 473 per cent, making it one of the largest undeveloped gas projects on the east coast.
Mahalo has increased its proven and probable (2P) gas reserves from 75 petajoules to 430 petajoules and has forecast first gas as soon as 2020.

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Comet Ridge chairman James McKay and managing director Tor McCaul. The announcement drove Comet Ridge’s share price to its highest trading point in eight years. Photo: Ray Cash Ph 0409344014
Comet Ridge holds the project's majority stake, at 40 per cent, with the remaining 60 per cent split evenly between Santos and Origin subsidiary Australia Pacific LNG.
The announcement drove Comet Ridge’s share price to its highest trading point in eight years, as it reached 33 cents, up 11 per cent on Tuesday.
Santos's share price also hit a one week high on the back of the news, trading at a peak of $5.10 this morning.

Comet Ridge managing director Tor McCaul said the project could contain the equivalent of more than five times Queensland’s entire domestic demand.
"We believe the Mahalo Gas Project could well prove to be a real game-changer, given its potential to partially alleviate the existing east coast gas squeeze," Mr McCaul said.
"Comet believes the Mahalo Gas Project presents an attractive opportunity for near-term production of low-cost deliverable located just 14 km from existing pipeline infrastructure."
Mr McCaul added that the company’s initial plan of 25 terajoules per day of production will likely be expanded.
Comet Ridge was previously highlighted as a potential Australian takeover target following increasing expectations of a flurry of merger and acquisition activity in the oil and gas space earlier this year.
Canaccord Genuity analyst James Bullen said this latest upgrade "makes Mahalo one of the largest undeveloped gas reserves on the east coast".
"Development economics and momentum are further improved by proximity to infrastructure, a stretched domestic gas market and an LNG market which is tightening rapidly," Mr Bullen said.
"In the wake of Origin’s Ironbark reserve write-down and continued questions over GLNG’s Roma field we struggle to see how this field doesn’t get fast-tracked for production."
In February, Origin announced a $355 million write-down on its Ironbark project.
Mr Bullen said considering the size of the field, which runs across 989 square kilometres, there is the expectation of continued 2P reserve upgrades.
RBC Capital Markets analyst Ben Wilson agreed that Mahalo will now outrank Ironbark in importance for Origin.
"From the point of view of Origin, Mahalo now significantly exceeds Ironbark 2P reserves on a gross basis," Mr Wilson said.
"Comet Ridge remains a catalyst rich play."