Comet Ridge (ASX: COI) has seen early signs of success at its Mahalo coal seam gas drilling program with the first three wells showing good continuity and thickness of coal at the Bowen basin, Queensland project.
The Mahalo-6 and Mahalo-4 wells intersected 7.5 metres and 7 metres of main Castor-Pollux coal seam respectively and have been cased and suspended.
The earlier Mahalo-3 well had intersected positive thickness of coal with good permeability.
Comet Ridge has also spudded the final well in the program, Mahalo-5, which is 280 metres southwest of Mahalo-1.
Comet Ridge has a 35% interest in ATP 337P Mahalo, having divested a 5% interest in the block to Stanwell Corporation.
Stanwell will fund Comet Ridge’s future expenditure at ATP 337P Mahalo up to A$8 million and has an option to purchase its equity in the Mahalo block, based on 2P reserves booked.
Other partners include Australia Pacfic LNG (30%) and Santos (ASX: STO) with 30%.
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.