Comet Ridges Updates on Mahalo 7 Drilling at ATP 377P in Queensland

Coal seam gas explorer and developer Comet Ridge Limited provided Tuesday an operational update on the progress of the Mahalo 7 horizontal surface to in-seam well project. This well was drilled during the first half of November in the ATP 337P Mahalo Block in Queensland’s Bowen Basin, Australia and is being operated by Santos QNT Pty Ltd.

The Mahalo 7 surface to in-seam horizontal well was designed to maximize the use of current reservoir data and has been positioned inside the current pilot wells. It was drilled past the Mahalo 3 vertical well, on the path to intersect the Mahalo 6 vertical well. The Mahalo 6 well will be utilized as the production well to lift the water and gas from the Mahalo 7 horizontal well. This coal is at a depth of approximately 754 feet (230 meters) with a coal seam thickness of
approximately 26 feet (8 meters).

The Mahalo 3, 4 and 5 vertical pilot wells continued to produce gas and water while the Mahalo 7 horizontal well passed by, in between Mahalo 3 and Mahalo 4, on the way to make the Mahalo 6 intercept.

Detailed analysis of production data from both Mahalo 3 and Mahalo 4 showed significant changes in gas and water rates very soon after the Mahalo 7 horizontal well entered the coal seam, showing positive signs of connectivity between the horizontal well and its vertical well neighbors. Comet Ridge Managing Director, Tor McCaul said he was very pleased that a response was observed in Mahalo 3 and 4 due to the Mahalo 7 drilling in such a short period.

Comet Ridge has been advised by the Operator, Santos QNT Pty Ltd, that the small workover rig to install the pump will be on the Mahalo 6 location on Sunday Dec. 14.

Mahalo 6 is currently set up as a production well, with flowlines, metering and separation facilities at surface, and use
of this well as the intersect well is therefore cost effective for the Joint Venture.

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 reserves certification for the Mahalo Block, which was detailed in a release to the ASX Aug.29.

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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