Comet Ridge Provides Mahalo North Development Plan Update

Source: 1/30/2023, Location: Not categorized

Key points:
• Comet Ridge and Denison to undertake an engineering study for an upgrade of Denison’s infrastructure to process gas from Mahalo North.
• The parties have engaged engineering contractor, Verbrec, to undertake the jointly funded FEED study.
• The study will prepare the design, project schedule and budget for upgrade of the Denison infrastructure to accommodate up to 10 TJ/d of gas production from Comet Ridge’s 100% held Mahalo North project.
• Given the high-quality composition of Mahalo North gas, only dehydration and compression are required for transport and sales.
• Once the results of the FEED study are completed, the parties intend to finalise commercial arrangements for the transportation of Mahalo North early gas production via the Denison infrastructure.

Comet Ridge Limited is pleased to advise that it has progressed discussions with Denison Gas Limited (Denison) for Comet Ridge to transport gas from Mahalo North via the nearby Denison compression and dehydration plant and pipeline infrastructure (Infrastructure). The parties have appointed Verbrec Infrastructure Services Pty Ltd (Verbrec) to undertake a Front-End Engineering Design (FEED) study which is being jointly funded by Comet Ridge and Denison.

The intent of the FEED study is to undertake process design, equipmentselection, develop plant layout, project scope, schedule and budget for the Denison Infrastructure upgrade to accommodate the supply of 10 Terajoules/day (TJ/d) of gas production from the Mahalo North Early Production Scheme (EPS) within ATP 2048.

Once the results of the FEED study are finalised, Comet Ridge and Denison will finalise the commercial arrangements under which Denison will compress, dehydrate and transport Mahalo North gas production, enabling Comet Ridge to move the project very quickly from recent appraisal and reserves certification activities, through development, and onto gas sales.

Comet Ridge Managing Director, Tor McCaul, said “We are very pleased with the considerable progress we have made with the team at Denison, our near neighbours in the Denison/Mahalo gas province. Whilst Comet Ridge will have a path to market for Mahalo North gas, there are other potential opportunities for this partnership to benefit both parties, such as the sharing of technical resources and data, operating efficiencies, and reducing drilling and other field related costs by rig sharing and gas blending arrangements.

“The investment in engineering studies for this project comes at a modest cost, which is appropriate at a time of uncertainty for the gas production industry. We remain hopeful that the Australian Government will listen to industry concerns about the negative impact its current domestic gas policy will have on future gas supplies and make necessary changes that will allow companies like Comet Ridge to invest with confidence in the development of the new sources of gas that are urgently needed for Australian consumers and manufacturers.”

Denison Chief Executive Officer, Benson Wong, said “Denison is pleased to be working with Comet Ridge and assisting them in getting their gas to market more quickly. This is an excellent example of two companies working together to help satisfy the needs of the East Coast energy market. In addition to expanding our processing and transportation capacity in our established, integrated processing facilities, Denison is also focused on expanding our supply of gas to market from our conventional gas reserves and CSG resources.”

Concurrent with the Infrastructure FEED study, Comet Ridge is also progressing its internal planning of the capital expenditure requirements and approvals required for the Mahalo North field development.

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