Comet Ridge is targeting reserves and possible production with the spudding of the Mahalo-3 coal seam gas pilot well in the Bowen Basin, Queensland, with its latest well.

Mahalo-3 well, which is funded by farm in partner Stanwell Corporation, targets the shallow Bandanna Formation coals in the northern portion of ATP 337P Mahalo about 260 kilometres west of Gladstone.

Under the terms of the Sale and Purchase Option Agreement with Stanwell, Comet Ridge could realise AUD 1 million in cash for every 1 petajoule of proved and probable gas reserves it has booked at the end of 2013.

This assumes that Stanwell elects to acquire Comet Ridge’s remaining 35% interest in ATP 337P Mahalo. Other partners in the block are Santos and Australia Pacific LNG, each of which holds a 30% interest.

Source - Proactive Investors

(www.coalguru.com)