Significant gas reserves and resources upgrade for Mahalo Gas...

Significant gas reserves and resources upgrade for Mahalo Gas Project
Tuesday, Mar 06, 2018
http://www.youroilandgasnews.com/si...es upgrade for mahalo gas project_147983.html

Comet Ridge Limited (ASX:COI) is pleased to announce a material reserves upgrade for their share of the Mahalo Gas Project (“Mahalo Project”) located in ATP1191 (formerly ATP337P). The Company has a 40 per cent interest in joint venture with Santos QNT Pty Ltd (Santos) and Australia Pacific LNG Pty Ltd (APLNG). The Mahalo Block lies approximately 240km west of Gladstone and proximal to pipeline connections.

Managing Director Mr Tor McCaul said Comet Ridge’s 40 per cent net share of 2P reserves had increased by 473 per cent from 30 PJ to 172 PJ while its net share of 3P reserves had risen 71 per cent to 374 PJ following completion of the 2017 work program.

“Importantly, Comet Ridge’s share of maiden 1P reserves of 18 PJ has been certified for Mahalo due to the exceptional performance of the Mahalo and Mira horizontal pilot wells, enabling commercial thresholds to be met,” he said.

“The outstanding success of the recent Mira 6 horizontal well and also the earlier Mahalo 7 horizontal well, signals the potential for material gas production from this Joint Venture, with this project now having real scale.”

The independent certifier’s gas resource volumes have also increased significantly, notwithstanding the large movement of resources into the reserves category. This indicates further potential upside from ongoing appraisal.

This latest Reserves assessment has been independently certified by MHA Petroleum Consultants, LLC (“MHA”) of Denver, Colorado. MHA has significant experience with the Mahalo Block having undertaken Comet Ridge’s maiden certification announced on 28 August 2014 and update on 2 December 2015.

Mr McCaul said the reserves and resources upgrade was an important milestone as the Mahalo Project moved towards gas production. “This reserves upgrade is exceptionally pleasing and comes off the back of great support and co-operation within the Mahalo Joint Venture from Santos and APLNG during the 2017 work programme,” he said.

“As the Mahalo Project moves closer towards a development decision, additional focus will be placed within the 2018 work program on building 1P and 2P reserves as further production data is collected and additional appraisal is undertaken.”

Mr McCaul said the significant increase in 3P reserves was important as it enabled the Joint Venture to potentially consider a larger scale of development than previously thought.

“We are very confident that, based on the high deliverability shown at the field pilots to date, the Mahalo Block will continue to develop into a valuable resource for Comet Ridge shareholders,” he said.

In accordance with the Society of Petroleum Engineers (“SPE”) 2007 Petroleum Resource Management System (“PRMS”) Guidelines as well as the 2011 Guidelines for Application of the PRMS approved by the SPE, MHA have updated the Reserves and Resources to COI’s net equity interest in Mahalo 1,2 using the deterministic method of petroleum reserves estimation.

At the time that Comet Ridge was appointed Agent for the 2017 Joint Venture exploration work program, it agreed not to cash call Santos for its 30 per cent share of costs until gross 2P Reserves of 334 PJ were achieved for the Mahalo block.

The current reserves certification of 430 PJ of 2P Reserves for 100 per cent of the Mahalo Project exceeds this reserves’ target by 29 per cent and enables Comet Ridge to cash call Santos for $1.348 million (representing 30 per cent of the 2017 work program cost of $4.5 million).

For more information, please visit: https://www.cometridge.com.au