Brisbane-based Comet Ridge has announced a 2P reserves upgrade at its Mahalo gas project in Queensland’s Bowen Basin.

The projects 2P reserves have increased by 36 percent to 30 petajoules (28 Bcf) while 3P reserves now stand at 219 PJ, (208 Bcf) representing a 77 percent increase.

The latest reserves assessment has been independently certified by MHA Petroleum Consultants,

The increase in reserves is a result of the success of the Mahalo 7 horizontal well in providing significant gas flows, and also additional open source well data.

According to the company, the most significant part of the reserves upgrade had been the conversion from the 1C contingent resource category.

Comet Ridge managing director Tor McCaul said the reserve upgrade continued to reinforce its earlier comments on the commerciality and value of the Mahalo gas project.

“The success of the Mahalo 7 horizontal well in producing significant flow rates from a relatively short horizontal well section, with gas flow rates still increasing, signals that there is significant gas production potential from this area,” he said.

“With the project located just 11 kilometers from an infrastructure connection to the Gladstone LNG market, the Mahalo Block is well positioned to capitalize on a very strained and rapidly expanding east coast gas market.

“Our plan is to continue building 2P reserves as further production data from Mahalo is collected and additional appraisal is undertaken.”

Comet Ridge has a 40 percent interest in the Mahalo JV project area which it shares with Australia Pacific LNG and Santos.

The Mahalo Block lies about 240 km west of Gladstone.