Comet Ridge said it has entered into binding agreements to acquire Australia Pacific LNG’s 30 percent interest in the Mahalo gas project.
With this move, Comet would increase its interest from 40% to 70% in the gas project located near Gladstone, Queensland, where the ConocoPhillips-operated 9 mtpa APLNG export facility sits.
Comet said it would in total pay A$20 million ($14.8 million) to APLNG for the stake purchase.
In addition, Comet said it has also executed a funding and option agreement with the continuing Mahalo JV partner, Santos.
Santos would provide a loan package to fund the upfront consideration in
exchange for an option to increase equity to 42.86 percent in the Mahalo gas project.
Also, Santos has a right to negotiate with Comet to increase its equity to 50% in the project and buy 50 percent equity in Comet’s 100 percent Mahalo North and Mahalo East assets.
“The Mahalo gas project is a heavily appraised and proven gas field which has clearly demonstrated strong commercial gas rates including 1.4 MMcfd or million standard cubic feet of gas per day – equivalent to almost 1.5 TJ/d, at Mira 6 from a single lateral pilot well,” Comet said.
According to Comet, this acquisition unlocks the Mahalo gas project providing a pathway to project development with Comet to be appraisal operator to drive Mahalo towards a final investment decision, and Santos as development operator.
Moreover, the transactions with Santos would provide a platform for the Mahalo gas hub area to become “a significant new source of gas supply, with a streamlined JV, to meet demand in the east coast and LNG markets,” the firm said.