Comet Ridge (ASX:COI) has intersected 7.2 metres of coal at its Mahalo coal seam asset in Queensland with the drilling of the Scrubber Gully 2 well.
The Scrubber Gully 2 is the first of the four step-out coreholes to be drilled following the recent drilling of pilot production wells in the Mira field.
The well is located about 5.2 kilometres southeast of the Mira field pilot wells, and was drilled to a total depth of 523 metres.
Drilling will be underway at the next well, Turkey's Nest 1, with the rig being moved to the location.
This well will also be cored through the reservoir section to further extend the area available for booking reserves in the Mahalo block.
These step-out coreholes are not set up to be production wells and will be eventually plugged.
Comet Ridge has a 35% interest in the Mahalo block, and has divested a 5% interest to Stanwell Corporation, which is funding Comet Ridge's expenditure for the Mahalo block.
It has an option to purchase half or all of its equity in the Mahalo block based on 2P reserves booked.
Other equity participants at the Mahalo block are CSG to LNG heavyweights APLNG and Santos with 30% each.
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