Comet Ridge Ltd (ASX:COI) plans to raise $2 million to progress its 40% owned Maholo coal seam gas project located in Queensland’s Bowen Basin.
The raising will consist of a $1 million placement priced at $0.05, which will be followed by a 1:25 rights issue to raise up to an additional $1.05 million.
Tor McCaul, managing director, commented: “The funds raised will be used for working capital while the company finalises the appraisal programme for reserves upgrade at Mahalo prior to commencing development, whilst also progressing funding discussions for drilling on the Albany Structure in the Eastern Galilee Basin.”
Comet Ridge owns 40% of ATP1191 known as the Mahalo JV Project alongside 30% Santos Ltd (ASX:STO) and 30% APLNG.
The company plans to convert existing 3P reserves to 2P reserves targeting up to 550 petajoules.
An initial production phase will target 25 terajoules per day of gas production.
Subscription agreements for the placement component of the raising have been entered into and the company expects to receive the funds next week.
The non-renounceable 1:25 rights issue will open Wednesday 12 October and close Monday 31 October.
The board reserve the right to place any shortfall under the rights issue within 3 months at a price no lower than the issue price of $0.05.
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