Santos Spuds Mahalo 7 Horizontal Well in Permit ATP 337P in Bowen Basin

Coal seam gas explorer and developer Comet Ridge Ltd. announced Friday the spud of the Mahalo 7 surface to in-seam horizontal well at 2000 hours Thursday Nov. 6, at its ATP 337P Mahalo asset in Queensland's Bowen Basin, Australia. The surface hole was drilled to 242 feet (74 meters) overnight and this morning the rig was preparing to run 9.625 inch surface casing.

This Mahalo 7 surfcae to in-seam horizontal well has been designed to maximize the use of current reservoir data and has been positioned inside the current pilot wells. It will be drilled past the Mahalo 3 vertical well, intersecting the Mahalo 6 vertical well. The Mahalo 6 well will be utilized to lift the water and gas from the Mahalo 7 horizontal well. The Mahalo 7 horizontal well is expected to run through approximately 1,640 feet (500 meters) of coal before the intercept. This coal is at a depth of approximately 754 feet (230 meters).

Mahalo 6 is currently set up as a production well, with flowlines, metering and separation facilities at surface. Use of this well as the intercept well is therefore cost effective for the Joint Venture and will enable timely recommencement of dewatering following completion of drilling. The Mahalo 7 well will take approximately two weeks to drill.

The Mahalo block sits approximately 149 miles (240 kilometers) west of Gladstone in central Queensland and the Joint Venture has been operating two production pilot schemes at the Mahalo Field Pilot and Mira Field Pilot, since the first half of 2013. Comet Ridge has recently received its first independent reserve cerftification for the Mahalo Block, which was detailed in a release to the ASX Aug. 29.

Equity participants in ATP337P Mahalo are Comet Ridge Mahalo Pty Ltd. (40 percent), Australia Pacific LNG Pty Ltd. (30 percent) and Santos QNT Pty Ltd. (30 percent). Santos QNT Pty Ltd. is defined as the Exploration Operator under the current Joint Venture Operating Agreement and has the responsibility for drilling the Mahalo 7 horizontal well.


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