Comet Ridge Updates Mahalo Project Ops

Comet Ridge Ltd. reports the coals intersected in the Mira 4 well are consistent with the earlier well drilled at Mira Field.

According to the release, the well intersected 8.7 m (29 ft) of coal over four separate, closely spaced intervals in the Castor Pollux reservoir

Mira 4 is located at Comet Ridge’s ATP 337P Mahalo asset in Queensland’s Bowen Basin. It is the second well in an eight-well program for the Mahalo joint venture and also the second of four pilot wells in Mira Field.

Mira 4 is located approximately 13 km southeast of the Mahalo pilot area and is approximately 250 km (155 miles) west of Gladstone in central Queensland. The well reached a total depth of 310 m (1,017 ft).

Production casing has been run and cemented in the Mira 4 well and the well suspended as a future pilot production well. The well will be completed for production later this month with tubing and a pump installed downhole.

The drilling rig is currently moving 500 m (1,641 ft) to the east to the Mira 5 well location and is expected to spud that well shortly. Mira 5 is the third pilot well to be drilled in the Mira field.

Comet Ridge currently has a 35% interest in ATP 337P Mahalo, having divested a 5% interest in the asset to Stanwell Corp. Ltd. in an agreement announced in September 2011. Under the terms of that agreement, Stanwell will fund Comet Ridge's expenditure for the Mahalo Field and Mira Field pilot schemes. The agreement also gives Stanwell an option to purchase half or all of Comet Ridge's equity in the Mahalo block, based on 2P reserves booked.

Equity participants in ATP 337P Mahalo are Comet Ridge Mahalo Pty. Ltd. 35%, Stanwell Corp. Ltd. 5%, Australia Pacific LNG Pty. Ltd. 30% and Santos QNT Pty. Ltd. 30%.