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Introduction & Market Context
Comet Ridge Ltd (ASX:COI) presented at the Queensland Energy Conference on April 3, 2025, highlighting its strategic position to address Australia's looming east coast gas supply challenges. The presentation, delivered by Managing Director Tor McCaul, emphasized the company's development-ready gas assets at a time when the Australian Competition and Consumer Commission (ACCC) forecasts significant supply shortfalls.
According to ACCC data presented by Comet Ridge, Australia's southern states face a projected gas deficit of 2,179 petajoules (PJ) between 2026 and 2036, with annual shortfalls potentially reaching 300 PJ by the mid-2030s. This market dynamic creates a compelling opportunity for new gas suppliers with development-ready assets.
As shown in the following chart of projected supply and demand in southern Australia:
Strategic Positioning
Comet Ridge's flagship Mahalo Gas Hub is strategically located near both the Queensland Gas Pipeline (serving domestic markets) and the GLNG pipeline (serving export markets), providing flexibility for future gas sales. The company highlighted this advantageous position as a key differentiator.
The following map illustrates the Mahalo Gas Hub's proximity to existing infrastructure:
The company outlined several key competitive advantages in its presentation, including its substantial reserves and resources position, demonstrated commercial flow rates, quality joint venture partners, and development-ready status with key approvals in place.
As shown in this summary of Comet Ridge's market positioning:
Development Progress
Comet Ridge reported successful results from three lateral pilot wells across the Mahalo Gas Hub, demonstrating the commercial viability of the resource. The Mahalo North 2 dual lateral well achieved the highest gas flow rate at 1.75 MMcfd (million cubic feet per day), followed by Mira 6 at 1.44 MMcfd and Mahalo 7 at 0.43 MMcfd.
The following illustration shows the productivity results from these lateral pilots:
The company also highlighted recent progress at its 100%-owned Mahalo East project, where initial gas flow occurred approximately 40 days after water pumping commenced. This pilot is located 25km from the Mahalo North pilot and 18km from the Mira pilot, extending the proven productive fairway. According to the presentation, gas content from laboratory analysis was higher than expected, potentially supporting future reserves certification.
Resource Base
Comet Ridge reported a substantial gas position across its Mahalo Gas Hub permits, with net 2P (proved plus probable) reserves and 2C (contingent) resources totaling 406 PJ. The company's 3P (proved, probable, plus possible) reserves and 3C resources amount to 827 PJ.
The following table details the company's reserves and resources position across its various permits:
The Mahalo JV project, in which Comet Ridge holds a 57.14% interest with Santos (42.86%) as operator, contains 152 PJ of 2P reserves and 180 PJ of 2C resources net to Comet Ridge. The company holds 100% interests in Mahalo North (43 PJ of 2P reserves), Mahalo East (31 PJ of 2C resources), and two additional exploration areas (Mahalo Far East and Mahalo Far East Extension).
Financial Overview
As of April 2, 2025, Comet Ridge had a share price of $0.135, giving it a market capitalization of approximately $161 million. The company reported a cash position of $19.3 million and debt of $9.5 million as of December 31, 2024. According to current market data, the share price has since increased to $0.145, representing a 3.45% gain.
The company's key financial metrics and share price performance are summarized in this corporate overview:
Forward Outlook
Comet Ridge outlined several near-term milestones for its Mahalo Gas Hub development. For the Mahalo JV project, the company reported that Santos completed the Select development phase in 2024 and commenced upstream Front End Engineering and Design (FEED) in January 2025. Simultaneously, Jemena has begun Pipeline FEED for a new 10-inch connection to the QGP and GLNG pipelines.
The company is working toward securing a new Gas Sales Agreement (GSA) and reaching a Final Investment Decision (FID), though specific timelines were not provided in the presentation.
The presentation concluded with these key messages about Comet Ridge's strategic position:
Comet Ridge appears well-positioned to capitalize on Australia's projected gas supply shortfall, with development-ready assets, demonstrated production capability, and strategic infrastructure access. Investors will be watching closely for progress on the company's path to Final Investment Decision and commercial production.
Full presentation:
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