Comet Ridge (ASX:COI) has entered into binding agreements to acquire Santos QNT’s 42.86% interest in the Mahalo Gas Project, increasing its holding from 57.14% to 100% and consolidating ownership of the entire Mahalo Gas Hub in Queensland, covering approximately 1,850km2.
The acquisition will position Comet Ridge as operator of the project, encompassing the Mahalo development leases, surrounding potential commercial areas, and the Mahalo North and East extensions.
Under the agreement, Comet Ridge will pay $40 million in cash consideration on completion, scheduled to occur at the project's final investment decision or by Jue 30, 2026, whichever comes first.
An additional $20 million in contingent payments is linked to production milestones, with $10 million payable after 10 PJ of sales gas and a further $10 million after 20 PJ.
A $2 million deposit has already been paid, with completion subject to customary conditions, including funding arrangements and any required shareholder approvals.
The acquisition increases Comet Ridge's 2P Reserves and 2C Resources at Mahalo to 677 PJ.
The company intends to prioritise domestic gas sales and optimise the development of the gas hub, simplifying project management and providing flexibility in capital and operational planning.
Comet Ridge is in advanced discussions with multiple funding partners.
At the time of reporting, Comet Ridge's share price was $0.12.