- Comet Ridge and Santos have completed the transaction for Comet Ridge to purchase Santos’ 42.86% share of the Mahalo JV area
- Comet Ridge now holds 100% of the entire Mahalo Gas Hub area and is the Operator
Comet Ridge has advised that all remaining conditions precedent to the acquisition of Santos QNT Pty Ltd's 42.86% interest in the Mahalo Gas Project have recently been satisfied. The parties have completed the transaction in accordance with the agreement announced in December 2025 and amended in May 2026.
Managing Director, Tor McCaul said: 'Completing this acquisition puts us in control of one of the few developmentready gas positions on the east coast. There is a lot of noise in the market about reservation policy at the moment, and it has weighed on sentiment right across the sector — but the underlying fundamentals haven't changed. East coast gas supply tightens from later this decade, and Mahalo sits in a very supportive jurisdiction for gas (i.e. Queensland), within easy reach of both the domestic market and the Gladstone LNG precinct. Recently, Jemena achieved a key project milestone, awarded with a Pipeline Licence to connect us into the existing network infrastructure. Optionality over where molecules can go is worth more in an uncertain policy environment, not less.'
Cash consideration of $24.42 million(1) has been paid to Santos and 83.78 million Comet Ridge shares issued to Santos as part of the up-front consideration. The share component was priced on a 10-day volume weighted average price prior to settlement, per the December 2025 agreement.
A further $30 million in future contingent payments is payable to Santos in three equal tranches on the Mahalo Gas Project achieving 10 PJ, 20 PJ and 30 PJ of cumulative sales gas thereby deferring the balance of consideration until the project is in production and generating strong positive cash flow.
Comet Ridge now holds 100% ownership and operatorship of the entire Mahalo Gas Hub, comprising approximately 1,850 square kilometres across the Mahalo Gas Project, Mahalo North, Mahalo East, Mahalo Far East and Mahalo Far East Extension permits, with 361 PJ of 2P Reserves and 676 PJ of combined 2P Reserves and 2C Contingent Resources. See Figure 1. Sole ownership removes the joint venture structure that Comet Ridge has previously identified as a constraint in funding and offtake discussions, and gives Comet Ridge full control over development timing, sequencing and capital allocation as Comet Ridge progresses a Final Investment Decision. Comet Ridge is optimising the project economics based on 100% ownership and in combination with our adjacent assets.
(1) The final cash consideration of $24.42 million was determined after including agreed past costs, licence fees, interest and other adjustments in accordance with the agreements executed in December 2025 and amended in May 2026.
Source: Comet Ridge
