Comet Ridge Report on Progress at Queensland's ATP 337P Mahalo Project

Comet Ridge Limited gave an operational update Tuesday on the progress of the Mahalo 7 horizontal surface to in-seam well project at ATP 337P in Queensland's Bowen Basin, Australia.

As previously announced, a workover of the Mahalo 6 vertical intercept well, to replace the downhole pump, was completed July 31 with no technical issues or concerns.

Since the restart of the pump in the Mahalo 6 vertical well Aug. 5, a very slow and gradual pressure drawdown has been applied, in line with the current operating strategy. At the same time, a steady water rate has been recorded and gas production has been building gradually since soon after the pumping well came back on line.

During operations to date, the remaining vertical wells (Mahalo 3, 4 and 5) have been shut in with downhole pressures being monitored and observed. Pressure responses have been measured in all wells as the pressure in the Mahalo 7 well has decreased, indicating a well-connected network of fractures linking the horizontal well with the other Mahalo wells. Comet Ridge is very pleased with the progress and advise that the plan is to continue with the steady approach employed since the restart of the Mahalo 6/7 combination.

Equity participants in ATP 337P Mahalo are Comet Ridge Mahalo Pty Ltd. (40 percent), Australia Pacific LNG Pty Ltd. (30 percent) and Santos QNT Pty Ltd. (30 percent).


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